Macquarie Real Estate Securities Fund Q3 2025 Commentary

2025-12-23 06:50:00 ET

Market review

US real estate investment trusts (REITs) returned 4.8% for 3Q25. Long bond yields stayed above 4%, with persistent inflation leading to question marks around the pace of US Federal Reserve (Fed) interest rate cuts and the likely terminal yield (level where cuts stop). That said, the Fed cut rates again in September after a long pause from the previous cut in December 2024. The monetary easing was supportive of risk markets. The US Treasury yield curve continues to steepen, led by the short end, which closely follows changes to Fed policy. Broader economic statistics remained mixed, with manufacturing purchasing managers’ indices (PMIs) below trend and services PMIs above trend. Elsewhere, the labor market saw modest employment growth offset by material reductions to prior-period monthly jobs numbers, which raised questions as to the strength of the US economy....

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