During times of volatility, REITs have proven to be a stable, secure and defensive investment opportunity. With long-term leases and strong cash flows, REITs present less risk and more predictable returns.
In 2025, REITs saw their strongest start to the year versus equities in more than a decade. According to Eric Rothman, portfolio manager for CenterSquare Investment Management’s real estate securities group, the FTSE NAREIT All Equity REITs Index has outperformed the S&P 500 Index by about 500 basis points, year-to-date through April 29, with a –0.32 percent total return compared to –5.35 percent for the S&P 500.
Despite current economic uncertainty, REITs are holding up well due to their attractive valuations and solid fundamentals, said Todd Kellenberger, client portfolio manager for Principal Asset Management. REIT earnings have a positive outlook, as new supply begins to decrease and the commercial real estate transaction activity for year is expect
