Andrii Yalanskyi
REITs continued to gain as Thanksgiving sales and strong macroeconomic data helped the broader markets and the sector’s Q3 figures turned out positive.
Notably, consumers spent $5.6B online on Thanksgiving Day, an increase of 5.5% from last year, according to a report by Adobe Analytics.
Meanwhile, initial jobless claims decreased during the week, while mortgage applications rose to highest level in 6 weeks as long-term mortgage rates fell to the lowest rate in two months.
On the other hand, the sector’s balance sheet remained strong, with about 75% of the industry players reporting Y/Y increases in net operating income in Q3. Same store NOI experienced 4.6% Y/Y gains. Nearly, two-thirds of REITs reported Y/Y increases in FFO.
The FTSE Nareit All Equity REITs index rose by 0.87%, while the Dow Jones Equity All REIT Total Return Index was up 0.88%.
The Real Estate Select Sector SPDR ETF increased by 0.97%, and FTSE Nareit Mortgage REITs index remained unchanged from last week.
Meanwhile, S&P 500 gained by 1% on a weekly basis.
Diversified was the biggest gainer of the week, having increased by 2.41%.
Data centers followed with a 2.21% increase from last week.
Office was the biggest loser of the week, having lost 1.08% of value.
Here is a look at the subsector performance for the week ended Nov. 24:
