REIT performance began 2026 with a strong start. Through February, the FTSE Nareit All Equity REITs Index posted a total return of 10.5%, the second highest calendar year start since 2006. While past performance may not be indicative of future results, historical data indicate that early robust gains by REITs have typically been followed by solid year-end results.
The chart above displays year-to-date (YTD) through February and calendar year REIT total returns (FTSE Nareit All Equity REITs Index) for the five years from 2006 to 2026 when REIT total returns in the first two months of the year were largest. The calendar year total return for 2026 is measured through March 16.
For each of the four observations with full calendar year results, REITs finished the year with positive total returns. In three of four instances, REIT annual performances bested early strong gains by substantial margins. Across those four years, REITs, on average, started the year with a two-month total return of 9.6% and ended the year with a total return of 25.0%, an average increase of 15.4%. Past results may not be indicative of future performances, but history shows that early REIT gains generally have signaled the potential for a strong year.
In the first two months of 2026, REITs posted a total return of 10.5%, marking the second strongest start of the calendar year for REIT gains since 2006. While the Iranian conflict has tempered YTD REIT performance, total return has remained positive; it was 7.6% as of March 16. Continued solid operational performance and disciplined balance sheets, highlighted in Nareit’s REIT Industry Tracker, should further assist REITs in maintaining their gains this year. In the current environment, it appears that early gains continue to signal a strong year for REITs.