The State Of REITs: September 2025 Edition

2025-09-16 15:17:54 ET

REIT Performance

REITs rebounded sharply in August (+5.48%) recovering most of their losses over the first 7 months of the year. The average REIT outpaced the broader market which saw smaller average positive returns from the Dow Jones Industrial Average (+3.4%), S&P 500 (+2.0%) and NASDAQ (+1.7%). The market cap weighted Vanguard Real Estate ETF ( VNQ ) fell short of the average REIT in August (+3.48% vs. +5.48%), but has handily outperformed year-to-date (+5.65% vs. -1.11%). The spread between the 2025 FFO multiples of large cap REITs (17.9x) and small cap REITs (13.9x) narrowed in August as multiples expanded 0.3 turns for large caps and 0.9 turns for small caps. Investors currently need to pay an average of 28.8% 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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