Real Estate Investment Trusts: A Rollercoaster Ride in 2024
Hey there fellow investors, have you been keeping an eye on the REIT sector lately? Well, let me tell you, it’s been quite a wild ride! In December, the REIT sector took a bit of a beating with an average total return of -6.85%. Ouch! But don’t worry, it’s not all bad news. Despite the downturn in December, REITs still managed to finish the year in the black with a total return of +3.70% for full year 2024.
December Breakdown
Let’s break it down further, shall we? Small cap REITs outperformed the rest with a total return of -5.98%, while mid cap REITs weren’t too far behind at -6.62%. On the other hand, large caps and micro caps didn’t fare as well, with total returns of -7.43% and -8.63%, respectively. It seems like size does matter when it comes to REIT performance!
Surprisingly, only 9.68% of REIT securities had a positive total return in December. Talk about a tough month for REIT investors! But hey, it’s not all doom and gloom. Looking at the bigger picture, 55.63% of REITs had a positive total return for the entire year of 2024. So, it’s not all bad news after all!
What does this mean for me?
Now, you might be wondering, how does all this drama in the REIT sector affect me as an investor? Well, if you have investments in REITs, you might see some fluctuations in your portfolio. It’s always a good idea to stay informed and keep an eye on market trends to make informed decisions about your investments.
What does this mean for the world?
On a broader scale, the performance of the REIT sector can have implications for the real estate market and the economy as a whole. A strong REIT sector can indicate a healthy real estate market, which is an important sector of the economy. However, a downturn in the REIT sector could potentially signal trouble ahead for the economy.
Conclusion
So, there you have it, folks! The REIT sector has certainly had its ups and downs in 2024, but that’s all part of the game when it comes to investing. Remember to stay informed, keep a close eye on market trends, and always think long-term when it comes to your investments. Who knows what surprises the REIT sector has in store for us in the year ahead!
