Real Estate Investment Trusts’ operating performance rebounded sharply in the second quarter from the first quarter of 2015, according to the Total REIT Industry Tracker Series (NAREIT T-Tracker) released by the National Association of Real Estate Investment Trusts (NAREIT).
The NAREIT T-Tracker is a quarterly, composite performance measure of the entire U.S. stock exchange-listed REIT industry.
“REITs are benefiting from the longer-term commercial real estate up cycle and from near-term strengthening of the U.S. economy this spring,” said NAREIT president and CEO Steven A. Wechsler.
“The economy has regained momentum with healthy demand growth following a sluggish winter.”
NAREIT T-Tracker results for the second quarter ended June 30, 2015 were as follows:
- The U.S. listed Equity REIT industry produced total Funds From Operations (FFO) of $12.9 billion in 2015:Q2, up 16.6 percent compared to the first quarter of 2015 and a 16.5 percent increase from $11.1 billion in the second quarter of 2014.
- Second quarter 2015 FFO per share was up 14.8 percent from the first quarter of 2015, and up 5.0 percent compared to the same period last year.
- Total Net Operating Income (NOI) was $19.5 billion in the second quarter for U.S. listed Equity REITs, up 7.5 percent from the first quarter of 2015 and a 12.7 percent increase from $17.3 billion in the second quarter of 2014.
- The NAREIT T-Tracker began compiling same-store NOI this quarter to provide a key measure of organic growth for investors. REITs delivered a 3.9 percent increase in same-store NOI in 2015:Q2 compared to the same period a year ago.
- Total dividends paid by all listed REITs were $10.7 billion in the second quarter, up 2.1 percent from $10.5 billion in the same period last year.
“REITs delivered strong operating performance in absolute terms and outperformed other S&P 500 sectors in the second quarter by a wide margin,” said Calvin Schnure, NAREIT’s Senior Vice President of Research & Economic Analysis.
“The growth in REIT net operating income is being driven by healthy same-store trends, reflecting rising occupancy and rent growth, coupled with ongoing expansion of the REIT sector.”