The real estate industry faced many challenges in 2024, including rising delinquencies and refinancing difficulties due to higher interest rates. Nonetheless, the resilience of the US economy and adjustments by financial institutions have helped alleviate some of the challenges faced by the sector. Looking ahead, much of the real estate sector remains under stress, especially office real estate.
The top 10 most read real estate stories of the year show regulatory challenges and market dynamics of the sector, with record-high home prices, dividend suspensions and major IPOs as the key themes. Notably, 2024 saw the largest listing ever of a US real estate investment trust — Lineage Inc. — measured by transaction value.
Most read real estate articles
1. CFPB proposal threatens further growth in banks' mortgage servicing income
In July, the Consumer Financial Protection Bureau proposed a rule that would require mortgage servicers to limit fees and help borrowers who ask for help to stay in their homes.
2. Home prices climb to new record high in July
The pace of price gain moderated in July, with the S&P CoreLogic Case-Shiller US National Home Price NSA Index rising 5.0% year over year, down from a 5.5% annual increase in the previous month.
3. Walgreens to close 1,200 stores; 8 REITs report it as a top tenant
Single-tenant net lease real estate investment trust Alpine Income Property Trust Inc. reported the largest exposure to Walgreens Boots Alliance as of Sept. 30.
4. US REIT discount to net asset value falls in June
The hotel sector traded at the largest median discount to net asset value among all REIT sectors, at 30.7% as of June 28, followed by the office sector at 29.9%.
5. Median implied capitalization rate for US REITs dips in Q1
The median implied capitalization rate for the US REIT sector dipped 20 basis points in the first quarter, following seven consecutive quarters of expanding rates.
6. 5 US REITs suspend dividends amid 2024 cuts
Compared with pre-pandemic levels, about 39.4% of publicly traded US REITs have suspended or lowered their dividends, while 55.1% of REITs are paying equal or higher dividends.
7. Short interest in real estate stocks climbs in March as sector struggles
At the end of March, short interest in real estate stocks was 3.28%, an increase of 20 basis points from the end of December 2023, according to S&P Global Market Intelligence data.
8. Lineage raises $5.1B in US market's biggest REIT IPO ever
The share price of the cold storage REIT climbed to about $86 apiece as of Aug. 5.
9. At-the-market offering proceeds raised by US REITs dip to $3.22B in Q2 2024
The bulk of the issuance was conducted by healthcare REITs, with Welltower Inc. raising the most proceeds of any US equity REIT during the quarter.
10. More than half of US REITs beat Q4'23 funds from operations per-share estimates
Sixty-five of 118 US REITs in an S&P Global Market Intelligence analysis beat their respective consensus estimates for funds from operations per share for the fourth quarter of 2023, while 24 fell short.