Publicly-traded REITs maintain healthy balance sheets and report strong revenues despite broader uncertainty in the commercial real estate investment market. 

According to the latest Nareit T-Tracker report, which compiles quarterly earnings results, publicly-traded REITs achieved a 4.2% year-over-year increase in funds from operations (FFO) to reach $20.6 billion in the second quarter of 2023. Additionally, 79% of REITs utilized unsecured debt, and 91% of their total debt was secured at fixed rates. Publicly-traded REITs rely heavily on unsecured debt at fixed rates, which helps them avoid the disruptions caused by rising interest rates.

According to WealthManagement.com, all-equity and equity indexes have remained in positive territory year-to-date. However, August presented challenges as total returns across major sector headings were universally negative, except for industrial and data centers. By comparison, the broader stock market indexes saw declines ranging from 1.5% to over 5% for the month. 

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