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Equity REITs posted their average earnings in the first quarter of 2024 maintain stable sequentially and annually, Nareit's latest quarterly T-Tracker report presented.
The sector posted an average FFO per share in the first quarter of $0.74. department for a year and last quarter, according to the report.
Aggregate funds from operations across the industry amounted to $18.84 billion. approximately unchanged from $18.76 billion in the fourth quarter of 2023 and $18.65 billion in the prior-year quarter.
Retail continued to record the highest FFO among sub-sectors, recording an aggregate FFO of $3.97 billion in the first quarter. The residential sector followed, with an FFO of $2.69 billion.
Telecommunications was next on the list, posting aggregate FFO of $2.44 billion for the quarter.
Guide
Of the 99 REITs that provide guidance, 48% kept its FFO outlook for 2024. A total of 41% increase orientation, while 11% gone down That's what Seeking Alpha author Hoya Capital said in a recent report.
Apartments were the notable winners of the first-quarter earnings season among subsectors, and five of the 11 residential REITs offering guidance improved their full-year outlooks. Essex Property Trust (ESS) made the most significant upward revision, the author said in a separate report.
Industrial REITs saw the most downward revisions to their 2024 outlooks. Prologis (PLD), the worst-performing large-cap REIT during earnings season, cut its forecasts due to weaker demand and particular weakness in its Southern California portfolio.
Performance
FTSE NAREIT Mortgage REITs index lost 3.94% in the first quarter to close at 2.68 on March 28. The index has decreased 7.58% so far this year, while the broader Real Estate Select Sector SPDR Fund ETF (NYSERCA:XLRE) has gone down 6.76%.
Search Alpha's quantitative scoring system ranks industrial REITs NewLake Capital Partners (OTCQX:NLCP) and Innovative Industrial Properties (IIPR) and diversified REIT CTO Realty Growth (CTO) as top picks. NLCP and IIPR receive a grade of A+ and A, respectively, for profitability, while CTO receives a grade of C-.
