Real estate investment trusts for the most part saw their stocks soar as 2023 came to an end, according to S&P Global Market Intelligence. The fourth quarter saw REIT share prices “outperforming the broader market,” wrote Chris Hudgins, research analyst for FIG Research.
“The jump came after a poor performance in the prior quarter when the Dow Jones Equity All REIT Index recorded a negative 8.4% return,” Hudgins said.
Based on data compiled Jan. 2, Diversified Healthcare Trust led the pack among all REITs that had market caps greater than $200 million, at 93.9%. The Newton, MA-based REIT’s stock rose to $3.74 per share at the end of 2023 after a $0.65 decline to $3.09 share in 2022.
DHC’s portfolio includes senior living communities managed by Aleris Life’s Five Star Senior Living and several other operators.
Office Properties Income Trust, with whom DHC called off a planned merger in September, also performed well in the fourth quarter, after a rocky start earlier in the year. OPI recorded a return of 89.3% for the fourth quarter, but its share price was down for 2023, recording a total return of negative 35.7%.
Omega Healthcare Investors, LTC Properties and Sabra Health Care REIT landed near the bottom of the list of worst-performing US equity REITs. Hunt Valley, MD-based Omega’s fourth quarter return was negative 5.7% for the quarter and 19.9% for the year. Westlake Village, CA-based LTC yielded a 1.8% total return in the fourth quarter and negative 3.2% for 2023. Sabra, based in Irvine, CA, rang out the year with a 4.5% return in the fourth quarter and 26.2% for the year.
