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.

READ THE FULL REPORT HERE
Alex Pettee, CFA
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A REIT Revival: Earnings Recap