Continue reading: Will 2021 be a great year for commercial and multi-family lending?
According to the report, about two-thirds of all REITs reported higher FFO in the second quarter than they did a year ago. Retail FFO increased 21.4% from the first quarter for the fourth straight quarter for the second quarter. By property type, regional shopping malls saw the largest FFO gains, up 32.5% from the previous quarter to $ 1.4 billion. Freestanding retail FFO ($ 806 million) and shopping mall FF0 ($ 1.03 billion) rose 22.4% and 7.9%, respectively, for the quarter.
Other sectors hit hard by the pandemic have seen earnings recover as well. The FFO of accommodation / resort REITs rose to $ 67 million in the second quarter after four consecutive quarters of negative FFO, while office REITs rose 37.7% to $ 2 billion, their pre-pandemic highs surpassed. Diversified REITs saw FFO grow 20.8% to $ 575 million.
“Real estate sectors that support the digital economy maintained their strong performance as the demand for technology-based commerce and communications continued to grow despite the lifting of COVID-19 restrictions,” Nareit stated in the report.