Public real estate investment trusts benefited from President Donald Trump’s tariff reversal on Wednesday, ending the day higher along with the rest of the market.
Trump said he would delay the implementation of tariffs – which had caused panic among the markets and a widespread downturn – on most countries for 90 days.
The FTSE Nareit All REITs index, which includes 139 stocks, rose 5.2 percent Wednesday. The S&P 500 recovered as well, ending the day up about 9.7 percent.
Lodging and resorts stocks notched the highest price gains, of just under 13 percent. Infrastructure fared the worst, with gains of just 0.36 percent.
As of end of day Tuesday, before Trump’s announcement, total returns on public REITs were down 9.5 percent since the start of the year. However, the FTSE Nareit All REITs index, which tends to perform better during periods of market volatility, had been underperforming the S&P 500 during the recent downturn. That index’s returns were down about 3 percent year to date on Tuesday.
Total returns also fell for REITs during the pandemic – about 6 percent in 2020 and 25 percent in 2022.
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