REITs bounce back in July

After posting an 11.25% drop in June, real estate investment trusts rebounded in July, rising 2.8% for the month, the National Association of Real Estate Investment Trusts Inc. and FTSE Group reported today. The FTSE NAREIT All REIT Index was up 2.8% last month but was down 2.9% year-to-date, while the FTSE NAREIT Equity REIT Index, which includes only property investments, gained 3.5% for the month but was down 0.3% year-to-date. The performance of REITs is stronger than the Dow Jones Industrial Average, which was down 14.2% year-to-date, and the Standard & Poor’s 500 stock index, which dropped 12.7%, according to a report issued by Washington-based NAREIT and London-based FTSE. Residential REITs were up 11.6% last year and were up 16% year-to-date due to strong fundamentals in the rental market. Self-storage REITs about flat last month, inching up 0.4%, but they were up 12.6% year-to-date due to the slumping housing market. Another sector with positive results last month was health care REITs, which jumped 11.9% and were up 9% year-to-date. Office REITs recorded a 6% monthly gain and increased 1.6% year-to-date. Meanwhile, retail REITs slipped 1.89% last month and were down 6.61% year-do-date, while lodging-resort REITs fell 8.95% for the month and tumbled 28% year-to-date. Publicly traded REITs have total equity market capitalization of $300 billion, according to the report.