Winners of REIT Earnings Season

Sector Report
Written By Alex Pettee, CFA

  • In Part 2 of our Earnings Recap, we present a sector-by-sector breakdown of the Winners of REIT Earnings Season, discussing incremental positives/negatives and noting the individual standouts.

  • Healthcare REITs were the leaders this earnings season, with results showing robust momentum in senior housing fundamentals, while tenant operator issues improved across other healthcare sub-sectors.

  • Results from Net Lease, Casino, and Residential Mortgage REITs - several of the most rate-sensitive sectors - were also surprisingly steady despite the interest rate turbulence in late 2024.

  • Retail REITs were winners as well, with strip center and mall REITs reporting another quarter of near-record occupancy and rent growth, pushing back on concern over recent store closing announcements.

  • Apartment REIT results were also modestly encouraging, as record-low turnover helped to control operating expenses and maintain occupancy despite peaking supply growth. Stay tuned for Losers of REIT Earnings Season later this week.

Alex Pettee, CFA
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A REIT Revival: Earnings Recap