Real estate stocks outperformed broader markets for the second consecutive month, cementing expectations of a REIT revival in 2026.
The benchmark S&P 500 index closed the last week of February 0.44% lower than the prior week, and 0.87% lower compared to January, at 6,878.84.
A continued technology-led selloff, weak jobs report, corporate earnings, the U.S. Supreme Court ruling on tariffs, GDP growth that grew less than expected, and a hotter-than-expected wholesale inflation report shaped sentiments, among others.
Meanwhile, the U.S. 10-Year Treasury yield slipped 29 basis points to 3.95% in February as investors increased bond purchases amid a weaker stock market.
Investor unease around the likelihood of an AI bubble is said to have impacted the megacap technology stocks.
“Megacap leadership has been fading,” S&P Global Market Intelligence reported, citing Bret Kenwell, an investment and options analyst at eToro.
Jeffrey O’Connor, U.S. head of equity market structure at Liquidnet, said investors are now seeking returns in underinvested areas, according to the February 27 report.
Real estate stocks seem to be beneficiaries of the shift in market behavior.
The S&P 500 Real Estate Index Sector (SP500-60) is up 6.23% month-over-month in February to 278.35 points, while the accompanying State Street Real Estate Select Sector SPDR ETF (XLRE) has advanced 5.82% to $43.84.
In February, the Dow Jones REIT Indx Equity REIT Total Return Index (REIT:IND) rose 7.56%, while the FTSE Nareit All Equity REITs index added 7.37%.
Weekly Gainers & Losers
Among the largecap stocks, CoStar Group (CSGP) led the weekly losers. The stock was down 10.51% W/W to $44.63. The real estate services company was trading lower despite a Q4 beat.
After the results announcement, several sell-side analysts lowered their price target on the stock over the EBITDA guidance.
On the flip side, Equinix (EQIX) (+4.97% W/W to $974.26), Sun Communities (SUI) (+4.29% W/W to $136.46), Invitation Homes (INVH) (+4.11% W/W to $26.34), and Healthpeak Properties (DOC) (+4.06% W/W to $17.68) led the gainers.
Equinix’s joint agreement with Canada Pension Plan Investment Board to purchase atNorth, a pan-Nordic data center operator, from Partners Group for $4B is anticipated to be immediately accretive upon close to the data center REIT’s AFFO per share.
Meanwhile, Sun Communities stock benefited from Q4 earnings and revenue that exceeded the Wall Street consensus and 2026 guidance, which came in line with expectations.
DOC announced the filing of a preliminary prospectus for an IPO of its senior housing unit, Janus Living.
Notably, Invitation Homes was gaining during the week despite negative reactions from Wall Street analysts. For example, Raymond James cut its recommendation on the stock, citing a demand drop that started in December and continued in January.
OUTFRONT Media (OUT) was the top performer among the midcap stocks, adding 10.13% from the prior week to close at $28.81.
This week, the specialized REIT delivered solid Q4 financial results, which exceeded Wall Street estimates in terms of EPS and revenue.
Fermi (FRMI) and Opendoor Technologies (OPEN) followed, advancing 9.32% to $9.97 and 8.40% to $5.42, respectively.
Notably, FRMI common stock volume was said to be above normal and directionally bullish after Berenberg lowered its price target on the stock on Tuesday. OPEN stock call volume was reportedly above normal and bullish on Thursday.
For the losers, Kilroy Realty (KRC) (-7.51% W/W to $29.82) took the top spot in the category. The office REIT announced board changes as well as dividends during the week.
Ryman Hospitality Properties (RHP), having lost 5.82% during the course of the week to close at $98.75, announced a $700M senior notes offering.
For the smallcap stocks, Transcontinental Realty Investors (TCI) (-19.23% W/W to $36.67) and Uniti Group (UNIT) (-14.69% W/W to $7.32) were the top losers, while Innovative Industrial Properties (IIPR) (+15.86% W/W to $52.96) and Hudson Pacific Properties (HPP) (+13.66% W/W to $7.24) were notable gainers.
IIPR and HPP gained on the back of solid quarterly financial results.
Here is a look at the subsector performances for the week:
Percentage-wise price change across real estate indices