The State Of REITs: May 2026 Edition

2026-05-21 04:16:43 ET

REIT Performance

The REIT sector sharply recovered from an ugly March with a very strong 8.90% return in April. The REIT sector outpaced the Dow Jones Industrial Average (+7.2%) but fell short of the double-digit gains from the S&P 500 (+10.5%) and NASDAQ (+15.3%). The market cap weighted Vanguard Real Estate ETF (VNQ) fell slightly short of the average REIT in April (+8.60% vs. 8.90%) but has solidly outperformed year-to-date (10.03% vs. +6.31%). The spread between the 2026 FFO multiples of large-cap (17.8x) and small-cap REITs (12.1x) widened in April as multiples expanded 1.5 turns for large caps and 0.8 turns for small caps. Investors currently need to pay an average of 47.1% more for each dollar of FFO from large-cap REITs relative to small-cap REITs. In this monthly publication, I will provide REIT data on numerous metrics to help readers identify which property types and individual securities currently offer the best opportunities to achieve their investment goals....

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