The FTSE Nareit All Equity REITs Index fell 2.7% in August, while continuing to lead the broader stock market on a year-to-date basis. Broader equity markets rose on the month, with the Russell 1000 gaining 2.8% and the Dow Jones U.S. Total Stock Market rising 2.7%.
On a year-to-date basis, REITs have returned 14.5% while the Dow Jones U.S. Total Stock Market is up 13.5% and the Russell 1000 is up 13.0%. Though the Federal Reserve has held interest rates steady, inflation remains above the target range, leading to speculation that a rate hike may occur before the end of the year.
The 10-year Treasury yield rose slightly in August, closing at 4.75%. The dividend yield on the FTSE Nareit All Equity REITs Index ended the month at 3.68% and the FTSE Nareit Mortgage REITs Index yielded 13.15%, compared to 1.02% for the S&P 500.
Property Sector Performance
As reflected in the charts above, most property sectors have outperformed their 2025 marks and posted positive gains in 2026. Lodging/resorts leads, followed by data centers and specialty, with respective returns of 36.6%, 33.0%, and 30.2%.
As reflected in the table above, most sectors declined in August. Telecommunications, data centers, and health care led in August, with respective total returns of 1.6%, 0.0%, and -1.2%. While continuing to lead at the sector level in 2026, lodging/resorts fell 8.0% on the month, with timberland falling 6.4%, and retail declining 6.2%.
The FTSE Nareit Mortgage REITs Index gained 0.8% in August. Home financing REITs rose 1.1% during the month, while commercial financing REITs declined 0.2%. Year-to-date, the Mortgage REITs index has gained 1.6% with home financing rising 6.2% and commercial financing declining 11.9%.