REIT fundamentals are solid and should pick up as the economy remains strong, transaction activity in real estate picks up and supply comes down, according to Todd Kellenberger, REIT client portfolio manager at Principal Asset Management.
REITs have outperformed in the first 11 months of the year. U.S. REITs rose 4.3 percent in November, according to the FTSE Nareit Equity REITs Index, and REITs are up 17.4 percent year-to-date.
“There are some really interesting opportunities in sectors like senior housing, single family rental, and data centers,” said Kellenberger.
Data centers have had some of the strongest performance in 2024, rising 33.1 percent through November, while healthcare REITs have returned 35.5 percent year-to-date. In November, some of the strongest performances were recorded by hotel, data center and regional mall REITs, all up 9.1 percent. Single-family rental (8.9 percent), apartments (8.2 percent), shopping centers (7.1 percent) and self-
