The FTSE Nareit All Equity REITs Index remained essentially unchanged in May, posting a narrow total return of 0.1%. Despite the flat monthly performance, REITs continue to lead on a year-to-date basis. For the year, the All Equity REITs Index has returned 13.2%, compared to 11.5% for the Dow Jones U.S. Total Stock Market and 10.9% for the Russell 1000.
Broader markets outperformed in May, as the Dow Jones U.S. Total Stock Market rose 5.2% and the Russell 1000 gained 5.1%. Investors continue to balance solid corporate earnings against geopolitical uncertainty and policy caution from central banks.
The yield on the 10-year Treasury rose 5 basis points over the month to finish at 4.44%, up from 4.39% as of April 30. The dividend yield on the FTSE Nareit All Equity REITs Index ended the month at 3.69% and the FTSE Nareit Mortgage REITs Index yielded 12.55%, compared to 1.02% for the S&P 500.
Property Sector Performance
As reflected in the chart above, all property sectors have posted positive gains for the year. Data centers remains the top-performing sector of 2026 with a total return of 37.1%. Specialty and lodging/resorts follow with respective returns of 29.7% and 27.4%.
As reflected in the table above, lodging/resorts led in May, with a total return of 9.3%, followed by office at 5.7%, and specialty at 4.2%.
The FTSE Nareit Mortgage REITs Index fell 4.2% in May. Home financing REITs fell 3.7% during the month, while commercial financing REITs declined 5.8%. Year-to-date, the Mortgage REITs index has posted a narrow loss of 0.2% with home financing rising 0.9% and commercial financing declining 3.3%.