REIT Stocks Flop As Post-Election Enthusiasm Fades, But One Sector Stands Strong

Financial Markets, Bonds, Stock Market

REIT stocks experienced a brief surge after President Donald Trump’s election, but that boost has reversed as investors worry about rising interest rates and a potentially peaking commercial real estate market.

The S&P U.S. REIT Index rose 4.2% last year but is down 1.3% this year, a marked distance from the S&P 500’s 6.9% current growth rate, the Wall Street Journal reports. Some sectors of the REIT market are faring worse than others, and retail REITs are especially troubled as thousands of stores close in response to e-commerce and shifting consumer trends.

Though retail REITs are feeling the pressure amid these nationwide closures, some of the country’s biggest retail REIT CEOs told Bisnow in March their biggest challenge is not filling their anchor vacancies, but rather convincing investors their businesses are not floundering.

Even industrial REITs, which posted a 31% total return last year, are showing signs of slowing as warehouse construction ramps up.

Not all REIT sectors are experiencing weak performance this year. So far data center REITs are winning, the WSJ reports, as tenants race to boost their capacity to host more online traffic.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Wall Street Impatient For Big Tech Returns On Data Center Spending

As AI Adoption Ramps Up, Half A Million Property Managers Are In The Crosshairs

Treasuries Hover Around 4.7% As Wall Street Questions If Warsh Is A 'Dove In Hawk's Clothing'

Avison Young Had Assets Frozen By Bank Over Unpaid Taxes

Camden Property Trust Sells West Coast Portfolio, Clears $1.5B Target

Churchill Downs Plans To Sell 9 Casinos, Focus On Horse Racing

Bringing Stability And Savings To CRE Insurance Through Working Layer

More Hotel Owners In Need Of Cash Are Getting It From The Big Brands

Former Arms Dealer Targeting Heartland Apartment Takeover Files For Bankruptcy

SEC Charges REIT, Its Founders With Alleged $152M Fraud Scheme

Equinix Ramps Up Spending Plans Amid Faster-Than-Expected AI Shift

Cortland, Pulte, INVH, Walker & Dunlop Execs Talk Changing Demographics, AI