The REIT rebound in March is now a distant memory as most REIT sectors stayed in the red for the second month a row in May, according to data from S&P Global. Most REITs now have been in negative territory for four of the first five months of the year.
In what may be the shape of things to come, the industrial sector notched the steepest monthly decline among REIT categories in May, with the 13 industrial REITs posting an average negative return of 15.6% as investors process Amazon's sudden reversal of its logistics network expansion.
Year-to-date returns for industrial REITs are now 22.7% below the record yields achieved in 2021, when demand for industrial space skyrocketed as e-commerce surged during the pandemic. The only REIT sector faring worse in 2022 YTD comparisons is the mall sector, down 27.5%.
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