Total return of REITs vs. other U.S. benchmarks as of December 2023, by time period
In 2023, real estate investment trusts (REITs) underperformed compared to other U.S. benchmarks such as S&P 500 and Nasdaq Composite. The 1-year total return of the FTSE Nareit All Equity REITs index, an index designed to track the performance of the equity REITs market, amounted to 11.36 percent. The Nasdaq Composite, which was the index with the best performance, had a four times higher total return during the same period.
On the longer run, REITs performed better. Over a 25-year period, the Nareit All Equity REITs index had a compound annual total return of 9.47 percent - higher than any other benchmark.