The State Of REITs: December 2025 Edition

2025-12-11 17:36:24 ET

REIT Performance

After a couple of tough months, the REIT sector rebounded in November with a +1.02% return. This narrows the year-to-date negative total return to -2.55% for the average REIT. REITs outperformed the broader market in November with average returns exceeding that of the Dow Jones Industrial Average (+0.5%), S&P 500 (+0.2%) and NASDAQ (-1.4%). The market cap weighted Vanguard Real Estate ETF ( VNQ ) more than doubled the return of the average REIT in November (+2.42% vs. +1.02%) and has handily outperformed year-to-date (+5.63% vs. -2.55%). The spread between the 2026 FFO multiples of large cap REITs (16.2x) and small cap REITs (12.8x) widened in November as multiples expanded 0.2 turns for large caps and 0.1 turns for small caps. Investors currently need to pay an average of 26.6% 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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