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REITs ended the week in green as the Federal Reserve kept its policy rate unchanged, and a decelerating Consumer Price Index gave a boost to the other major indices.
The Fed kept its policy rate unchanged at 5.0%-5.25% on Wednesday, breaking a streak of 10 straight rate hikes over 14 months. U.S. stocks closed with solid gains on Thursday.
Meanwhile, the CPI edged up 0.1% in May from April, less than +0.2% expected and decelerating from the +0.4% gain in April. U.S. stocks finished higher on Tuesday after economic data showed a moderation in consumer inflation.
S&P 500 finished the week 2.58% higher, while the FTSE Nareit All Equity REITs gained by 1.25% from last week.
Comparatively, the broader real estate index increased by 1.54%.
The FTSE NAREIT Mortgage REITs index was higher by 3.35% on a weekly basis.
Timber subsector was the biggest gainer among the equity REITs, having finished ~5% higher than last week.
Data centers rose by ~4%.
On the other hand, hotel REITs were major laggards, dropping in value by ~4%.
Here is a look at the subsector performance for this week:
More on REITs:
- Ranking 10 REITs From Highest Quality To Lowest Quality
- Let The REIT Rally Begin!
More on real estate:
- Breaking Point: The Looming Crisis In Commercial Real Estate (And A Look At XLRE)
- Real Estate At 50 Cents On The Dollar
