**REIT Index Inches Higher in September Amid Fed Rate Cut**
The FTSE Nareit All Equity REITs Index posted a modest gain of 0.4% in September following the Federal Reserve’s decision to cut the federal funds rate by 25 basis points. According to Nareit, real estate investment trusts underperformed the broader stock market for the month, with the Dow Jones U.S. Total Stock Market and the Russell 1000 each rising 3.5%.
Year-to-date, the All Equity REITs Index has gained 4.5%, compared to a 14.6% rise for the Russell 1000 and a 14.4% increase for the Dow Jones U.S. Total Stock Market.
Among REIT sectors, healthcare continues to lead year-to-date performance with a 26.7% total return. It is followed by diversified REITs at 20.1% and gaming REITs at 12.0%.
For the month of September, specialty REITs outpaced all other sectors with a notable increase of 5.5%. Healthcare REITs followed closely with a 4.4% monthly gain, and office REITs posted a 2.2% rise. On the other end, telecommunications (-4.1%), lodging/resorts (-3.1%), and timberland (-2.9%) all lagged the broader REIT index.
*Pictured: A Ventas healthcare property. The healthcare sector continues to lead all other REIT categories in year-to-date total returns.*
Industry experts and investors will have the opportunity to explore the driving factors behind healthcare real estate—including capital markets, development trends, leasing dynamics, and shifting demographics—at the upcoming Connect Healthcare Real Estate event. The conference, taking place October 14–15 in Irvine, will feature a lineup of thought leaders focused on medical office buildings, freestanding emergency departments, urgent care centers, and hospital investment strategies.
