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Industrial REIT Prologis, in common with 84% of U.S. REITs, reported a year-over-year increase in funds from operations in 2022's second quarter compared to a year ago

REITs Post Record-High FFO, NOI in Second Quarter

REITs posted record-high funds from operations (FFO) as they navigate ongoing interest rate increases and high inflation, according to second-quarter data from the Nareit Total REIT Industry Tracker Series (T-Tracker) report released Monday. 

The quarterly report also underscores REITs’ recovery from the pandemic, with the new data showing that occupancy rates of total REIT-owned properties reached and exceeded pre-pandemic levels for the first time. 

“REITs delivered strong operating performance despite concerns about a slowing economy,” said John Worth, Nareit EVP of research and investor outteach. “REITs and the publicly traded real estate industry have not been immune to stock market volatility, but operating performance is holding up.” 

Nearly 84% of REITs reported increased FFO from a year ago, and almost every sector achieved quarter-over-quarter FFO growth, said Nareit. NOI also reached an all-time high of $28.5 billion, 3.9% higher than last quarter and 9.9% higher than a year ago. 

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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