REIT Replay: Data center REIT stocks jump during week ended July 24

Indexes tracking US equity real estate investment trusts outperformed the broader stock market indexes during the week ended July 24.

The Dow Jones Equity All REIT index closed the recent week up 1.09%, while the MSCI US REIT (RMZ) index increased 1.63% over the week.

By comparison, the broader stock market indexes closed the recent week in the red, with the S&P 500 down 0.61% and the Dow Jones Industrial Average decreasing a small 0.38%.

Among the Dow Jones US real estate property sector indexes, the healthcare REIT index recorded the largest increase over the week, up 3.24%. The self-storage and hotel REIT indexes also recorded increases of 1.55% and 0.95%, respectively, while the office REIT index also rose a small 0.45%.

On the other hand, the industrial REIT index fell 1.73% during the week, while the apartment and retail REIT indexes decreased 0.57% and 0.23%, respectively.

Data center REITs largely populated the list of top-performing REIT stocks for the week. Fermi Inc. recorded the largest share-price increase among all US equity REITs with at least $200 million in market capitalization, up 22.31%. Digital Realty Trust Inc. ranked second with a share-price increase of 14.49%. Blackstone Digital Infrastructure Trust Inc. and Equinix Inc. also ranked in the fourth and fifth spots with share-price increases of 8.71% and 6.30%, respectively. Outside the data center sector, healthcare-focused Sabra Health Care REIT Inc. ranked as the third-top-performing REIT stock, up 11.19% for the week.

Two cold-storage REITs logged the largest share-price declines for the recent week. Americold Realty Trust Inc.'s share price fell 10.11% while Lineage Inc.'s share price declined 7.11% during the week. Communications REIT SBA Communications Corp. followed next with a share-price decline of 6.53% for the week.

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