Fin Tap
Equity REIT first quarter 2024 average earnings Steady Nareit’s latest quarterly T-Tracker report shows, both sequentially and annually.
The industry’s average FFO per share in the first quarter was $0.74. flat from a year ago and last quarter, the report said.
Funding from operations across the industry totaled $18.84B, Roughly unchanged It was $18.76B in the fourth quarter of 2023, compared with $18.65B in the same period last year.
Retail continues to have the highest FFO among the sub-sectors, with total FFO in the first quarter of $3.97B. Residential follows closely behind with FFO of $2.69B.
Telecommunications follows closely behind with total FFO of $2.44B for the quarter.
guide
Of the 99 REITs providing guidance, 48% Keep Their 2024 FFO outlook. Total 41% Upregulate guidance, while 11% reduce Hoya Capital, author of Seeking Alpha, said in a recent report.
Apartments were the clear winner of the first-quarter earnings season among subsectors, with five of the 11 residential REITs that provided guidance raising their full-year forecasts. In a separate note, the authors said that Essex Property Trust (ESS) made the most notable upward revisions.
Industrial REITs have seen the largest downward revisions to their 2024 outlook. Prologis ( PLD ), the worst-performing large-cap REIT of the earnings season, cut guidance due to weak demand and particular weakness in its Southern California portfolio.
Performance
FTSE NAREIT Mortgage REIT Index falls 3.94% The first quarter closed at 2.68 on March 28, with the index declining. 7.58% Year to date, while the Broader Real Estate Select Sector SPDR Fund ETF (NYSE:XLRE) has dropped 6.76%.
Seeking Alpha’s Quantitative Ratings system ranks industrial REITs NewLake Capital Partners (OTCQX:NLCP) and Innovative Industrial Properties (IIPR) as top picks, as well as diversified REIT CTO Realty Growth (CTO). NLCP and IIPR have profitability ratings of A+ and A respectively, while CTO has a C- rating.
