Episode 391: Citi Global Real Estate Outlook Sees Stock Picking as Key Theme in 2024
Three members of Citi\u2019s global real estate research team\u2014Nick Joseph in the U.S., Aaron Guy in the U.K., and Howard Penny in Australia\u2014were guests on the latest episode of the Nareit REIT Report podcast.\xa0
Amid the market cross currents of slower global economic growth, offset to some extent by anticipated lower interest rates, \u201cwe are generally constructive on commercial real estate in 2024,\u201d Joseph said. At the same time, Citi\u2019s 2024 global real estate outlook also stresses the importance of stock picking, rather than broader sector and subsector allocations.
For the U.S., Citi is projecting total returns for REITs of 10% to 15% in 2024, with adjusted FFO growth of about 3%. \u201cGrowth is being driven by slowing but still solid operating results, development and the redevelopment benefit that is coming on, and the retention of free cash flow,\u201d Joseph said.