A REIT Revival: Earnings Recap
A REIT Revival? Buoyed by much-needed relief on the interest rate front, REITs have outperformed the broader S&P 500 by 10 percentage points since the start of earnings season.
While interest rates have been the "spark" to the REIT rebound over the past two months, a very solid slate of earnings results provided the much-needed fuel.
In one of the strongest overall REIT earnings seasons in the past half-decade, two-thirds of REITs reported full-year FFO that exceeded guidance estimates.
Dividend news was a notable positive highlight of REIT earnings season. We've seen 29 REITs raise their dividends this year - slightly ahead of last year's pacing at this time.
REITs have delivered cumulative FFO growth of roughly 18% since the start of 2022, during which time REIT stock price performance is effectively flat, underscoring the relatively compelling valuations of REITs compared to the broader equity market.
