Market Analysis & Research

A recent Nareit commentary noted that the public-private real estate valuation gap persists, with private appraised property values still disconnected from market realities.

The FTSE EPRA Nareit Developed Plus Index fell 2.8% in August and has posted a year-to-date total return of 8.8%. North America continues to set the pace regionally with a year-to-date total return of 16.3%.

Recently, the real estate valuation process has taken a journey of its own—one defined by a different “Triple D”: Divergence, Denial, and Discounts.

The FTSE Nareit All Equity REITs Index fell 2.7% in August, while continuing to lead the broader stock market on a year-to-date basis. Broader equity markets rose on the month, with the Russell 1000 gaining 2.8% and the Dow Jones U.S. Total Stock Market rising 2.7%.

Australia’s Resolution Capital worked with a European client with an existing private diversified real estate portfolio to enhance the liquidity, efficiency, and diversification of its real estate portfolio by adopting a global listed real estate securities sleeve.

Well-structured balance sheets have also allowed REITs to continue to operate from a position of financial strength.

REITs have delivered strong investment performance thus far in 2026.

A recent Nareit commentary noted that fundamentals across the four traditional property types continued to show positive momentum and signs of stabilization, but occupancy rates remained mostly flat and rent growth struggled to match inflation.

In the second quarter of 2026, CoStar data indicated that fundamentals across the four traditional property types continued to show positive momentum and signs of stabilization.

The FTSE EPRA Nareit Developed Extended Index gained 2.8% in July, bringing its 2026 return to 11.9%, while the FTSE EPRA Nareit Developed Index returned 2.7% for the month and has gained 13.2% year-to-date.

The FTSE Nareit All Equity REITs Index rose 2.4% in July, extending its year-to-date total return to 17.7%.