MRP - The State Of REITs: October 2025 Edition
2025-10-13 10:26:30 ET
REIT Performance
The REIT sector averaged a small negative return (-0.73%) in September and remains modestly in the red year-to-date (-1.74%). The average REIT came up short of the broader market, which saw solid gains from the Dow Jones Industrial Average (+2.0%), S&P 500 (+3.6%), and NASDAQ (+5.7%). The market-cap-weighted Vanguard Real Estate Index Fund ETF Shares ( VNQ ) outpaced the average REIT in September (+0.07% vs. -0.73%) and has significantly outperformed year-to-date (+5.72% vs. -1.74%). The spread between the 2026 FFO multiples of large-cap REITs (16.4x) and small-cap REITs (13.9x) widened in September as multiples contracted 0.2 turns for large caps and 0.4 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....
The State Of REITs: October 2025 Edition