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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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