S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.

US healthcare real estate investment trusts recorded solid performance in the second quarter, with average funds from operations and same-store net operating income up 20.3% and 8.1%, respectively, year over year, according to a new report from Nareit.

Nareit is the US-based trade association for REITs and publicly traded real estate companies.

The sector is expected to continue performing well due to demand tailwinds such as the aging population in the country. In just over a decade, for the first time in US history, people aged at least 65 years are expected to outnumber those under the age of 18, according to US Census Bureau projections.

Healthcare REITs, which own senior living communities, hospitals, medical office buildings and skilled nursing facilities, comprise 8% of equity market capitalization as of the end of August.

The sector's share in the FTSE Nareit All Equity REIT Index stood at 4.5%, surpassing the office sector's share, the report said.

CHART OF THE WEEK: NAV discount for US REITs up in August

⮞ Publicly listed US REITs traded at a median discount of 19.5% to their consensus net asset value (NAV) per-share estimates as of Aug. 31, according to S&P Global Market Intelligence data. By comparison, the REITs were trading at a median discount of 15.9% at the end of July.

⮞ Office and hotel REITs recorded the largest median discount to NAV at 35.4% and 33.8%, respectively.

⮞ Datacenter was the lone sector that traded at a median premium to NAV as of Aug. 31.

Property trade

– French retail landlord Unibail-Rodamco-Westfield SE sold the 1-million-square-foot Westfield Valencia Town Center in Santa Clarita, Calif., to Centennial Real Estate Co. for $199 million. The price represents a less than 3% discount to the regional mall's last unaffected appraisal as of Dec. 31, 2022, Unibail said.

– Verbena Road Holdings sold the Lanthian, a luxury apartment building in Manhattan, NY, to New York University for $210 million, The Real Deal reported. The 23-story building features 209 units at 377 E. 33rd St.

Industry news

– WeWork Inc. is in talks with its landlords to renegotiate its office leases globally, The Wall Street Journal reported. The flexible office company continues to face cash troubles and market headwinds. Office leases make up more than two-thirds of the company's operating expenses, according to the report.

– The SEC fined real estate investment firm Prime Group Holdings LLC for "inadequate disclosure" of real estate brokerage fees paid to an affiliate that was owned by Prime's CEO. The firm will settle the charges by paying a $6.5 million civil penalty and more than $14 million in disgorgement and prejudgment interest, the SEC said in a release.

See key people moves in North American real estate.

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