Mall REITs close Q4'22 on upswing

Real estate investment trust stocks generated positive returns in the fourth quarter of 2022, alongside the broader market.

The Dow Jones Equity All REIT Index logged a 4.2% total return for the period, compared to a 7.6% return for the S&P 500, according to S&P Global Market Intelligence data.

That being said, the Dow Jones Equity All REIT Index recorded a total return of negative 25.0% for 2022 as a whole, while the S&P 500 logged its lowest annual return since 2008 at negative 18.1%.

Sector returns

Retail-focused REITs logged the highest returns in the fourth quarter of 2022.

Among the Dow Jones US Real Estate sector indexes, the regional mall index closed the fourth quarter of 2022 with the highest return, at 32.8%. Within the mall index, Macerich Co. generated a return of 43.9% for the quarter, while Simon Property Group Inc.'s return was 32.9%.

The strip center index, also referred to as shopping center REITs, finished the quarter with a 14.1% return, while the industrial REIT index followed with a return of 11.0%.

* For further analysis, try the Worldwide Real Estate Total Return Analysis Excel Template. * Click here to set email alerts for future Data Dispatch articles.

At the bottom end, the apartment REIT index recorded a negative 8.0% return for the quarter, the lowest of any property sector index.

Similarly, the self-storage index saw a return of negative 4.1%, and the office index saw a return of negative 0.3%.

Top-performing REITs

Service Properties Trust was the top-performing REIT stock above $200 million market capitalization for the 2022 fourth quarter, with a total return of 44.2%. The hotel-focused REIT's share price spiked more than 27% on Oct. 13, 2022, after boosting its quarterly dividend to 20 cents per share, its first increase after dropping its quarterly payout to 1 cent per share at the onset of the COVID-19 pandemic.

Macerich Co. placed second with its 43.9% return for the quarter, while diversified Veris Residential Inc. rounded out the top three with a return of 40.1%.

Bottom-performing REITs

On the other hand, industrial REIT Industrial Logistics Properties Trust logged the lowest return of the quarter, at negative 40.4%.

Communications REIT Uniti Group Inc. held the second-lowest return at negative 18.4%.

Two office REITs, City Office REIT Inc. and SL Green Realty Corp., followed next, both with returns of negative 14.1%.