US REIT stocks outperform broader stock market in Q1 2026

US equity real estate investment trust stocks outperformed the broader stock market during the first quarter.

The Dow Jones Equity All REIT index recorded a 3.8% total return for the recent quarter, compared with a negative 4.3% return for the S&P 500, according to data compiled by S&P Global Market Intelligence.

However, on a one-year basis, the S&P 500 vastly outperformed the Dow Jones Equity All REIT index. The broader index logged a more than 17% return for the year relative to a much smaller 3.4% gain for the Dow Jones Equity All REIT index.

Looking at the Dow Jones US real estate property sector indexes, the self-storage REIT index logged the largest return for the first quarter, at 9.2%, followed closely by the strip centers REIT index with an 8.6% return.

By contrast, the office REIT index again recorded the largest decline for the quarter, with a return of negative 12.8%. The index is at its lowest point since the middle of the global financial crisis in 2009. Additionally, seven of the 10 worst-performing US REIT stocks above $200 million in market capitalization were from the office sector.

Share prices for office REITs fell significantly during the quarter, with growing concerns and speculation that advancements in AI could eventually lead to a decline in white-collar jobs and office space demand.

The apartment REIT index followed with a negative 7.6% return, the second-largest decline.

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Top-performing REITs

Peakstone Realty Trust, which completed the sale of its office properties in December 2025 and became an industrial-only REIT, recorded the largest return among all US REIT stocks with at least $200 million in market capitalization for the first quarter, posting a 45.6% return.

On Feb. 2, Peakstone announced a definitive agreement to be taken private by Brookfield Asset Management Ltd. for $21.00 per share in cash. The per-share price represented a 34% premium to Peakstone's closing price in the prior trading day, as well as a 46% premium to its 30-day volume-weighted average price and a 51% premium to its 90-day volume-weighted average price.

Diversified Healthcare Trust ranked second, with a 37.2% return for the first quarter. The healthcare REIT's share price consistently increased throughout the quarter, closing March 31 at $6.64 per share. The REIT reported strong earnings for the fourth quarter of 2025, with 15.4% year-over-year growth in same-store net operating income. The REIT's senior housing operating portfolio in particular logged outsize growth, with same-store net operating income for the segment growing 27.6% year over year in the fourth quarter of 2025.

Self-storage REIT National Storage Affiliates Trust rounded out the top-three performing REIT stocks for the first quarter, with a return of 36.2%. The REIT's share price jumped March 16 following its announcement that it will be acquired by Public Storage in an all-stock transaction. Under the terms of the deal, National Storage Affiliates shareholders will receive 0.14 Public Storage common share for each share owned. This represented total consideration of $41.68 per share based on Public Storage's closing share price March 13, the prior trading day.

Worst-performing REITs

Worst-performing US REIT stocks with at least $200 million in market capitalization were largely populated by the office sector, with 10 office REITs logging negative returns in the double-digits for the quarter.

Hudson Pacific Properties Inc. recorded the lowest return of all US REIT stocks for the first quarter, at negative 45.4%.

Six office REITs also populated the fourth through ninth spots: Kilroy Realty Corp., BXP Inc., Vornado Realty Trust, Piedmont Realty Trust Inc., Empire State Realty Trust Inc. and SL Green Realty Corp. Their total returns ranged from negative 23.1% to negative 18.1%.

Data center REIT Fermi Inc. was the second-worst-performing US REIT stock for the quarter, with a return of negative 27.0%. Fermi's share price for the quarter bottomed out at $5.36 per share on March 30 following its 2025 earnings release.

Hotel-focused Service Properties Trust followed, with a return of negative 26.0% for the quarter. Service Properties' share price fell over 24% on the final trading day of the quarter after announcing a $500.0 million underwritten public offering of its common shares, with proceeds planned to redeem all or a portion of the $100 million outstanding of its 4.95% senior notes due 2027 and/or the $450 million outstanding of its 5.50% senior notes due 2027. Service Properties later announced the pricing of the common stock offering at $1.20 per share after market hours March 31, 33% below the REIT's March 30 closing price of $1.79 per share.