Many investors think they can safely ignore the publicly traded REIT market for various reasons. After a 28% surge in 2019, the opportunity cost of ignoring publicly-traded REITs should be evident. With industrial, data center, single family housing, and timber REITs all returning in excess of 40% over the last twelve months, many investors will have to justify leaving these best in breed real estate companies out of their portfolios.

Source: Nareit | Repost Serenity Alts 1/15/2020

In 2019, the U.S. REIT market delivered double-digit returns across nearly all sectors, raised a record amount of market capital, and continued to provide strong dividend yields to income investors, according to Nareit.

“REITs in 2019 provided both the long-term growth and recurring income that characterizes real estate investment,” said Nareit President and CEO Steven A. Wechsler. “The REIT market’s performance underlines the value of REITs as a total return investment, delivering price appreciation in tandem with dividends critical for investors seeking income in today’s low interest rate environment.”

The FTSE Nareit All Equity REITs Index delivered a total return of 28.66% for 2019, with a 0.13% gain for the fourth quarter, the FTSE Nareit Mortgage REITs had a total return of 21.33% and a 5.20% gain for the fourth quarter, and the FTSE Nareit All REITs Index, which contains both equity and mREITs, had a total return of 28.07% for the year with a 0.55% gain for the fourth quarter. The S&P 500’s total return for 2019 was 31.49%, with a gain of 9.07% in the fourth quarter.

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