The State Of REITs: June 2025 Edition

2025-06-23 03:49:33 ET

REIT Performance

After back-to-back months in the red, REITs rebounded in May with a solid +2.08% average total return. However, the REIT sector’s gains fell far short of the broader market with strong gains from the Dow Jones Industrial Average (+4.2%), S&P 500 (+6.3%) and NASDAQ (+9.6%). The market cap weighted Vanguard Real Estate Index Fund ETF ( VNQ ) fell short of the average REIT in May (+1.12% vs. +2.08%), but has handily outperformed year-to-date (+1.31% vs. -7.33%). The spread between the 2025 FFO multiples of large cap REITs (17.8x) and small cap REITs (12.9x) widened in May as multiples expanded 0.3 turns for large caps but held steady for small caps. Investors currently need to pay an average of 38% 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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