The State Of REITs: November 2025 Edition

2025-11-18 12:33:44 ET

REIT Performance

The REIT sector had a rough month in October with a -4.03% negative return. This brings the year-to-date return to -4.69% for the average REIT. The average REIT severely underperformed the broader market which saw strong gains from the NASDAQ (+4.7%), Dow Jones Industrial Average (+2.6%) and S&P 500 (+2.3%). The market cap weighted Vanguard Real Estate ETF ( VNQ ) saw a more modestly negative return than the average REIT in October (-2.45% vs. -4.03%) and has tremendously outperformed year-to-date (+2.98% vs. -4.69%). The spread between the 2026 FFO multiples of large cap REITs (16x) and small cap REITs (12.7x) widened in October as multiples contracted 0.4 turns for large caps and 1.2 turns for small caps. Investors currently need to pay an average of 26% 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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