REITs rise in February, remain down YTD

U.S. REITs advanced in February, rising 2.0 percent, according to the FTSE Nareit Equity REITs Index, but remained in the red year-to-date, with a two-month return of –2.2 percent. And equity REITs continue to lag the broader equity markets; by comparison, the S&P 500 Index was up 5.3 percent in February.

Some of the strongest performances in February were recorded by regional malls (6.6 percent), data centers (6.5 percent) and hotels (6.5 percent). Data centers have logged the best performance year-to-date, up 10.3 percent, on the back of strong demand trends from the digital transition and artificial intelligence.

As Jeff Kanne, president and CEO of National Real Estate Advisors, noted in an interview