Real Estate Securities Market Review 1Q 2026

Global Market Review

Global listed REITs delivered resilient performance in the first quarter of 2026, they exhibited characteristics commonly associated with income‑oriented equity allocations, though they remained subject to market and capital risk amid heightened macroeconomic volatility and equity market drawdowns. The FTSE EPRA Nareit Developed Index posted positive year-to-date return of 1.03% through the quarter, materially outperforming broader global equities as investors gravitated toward stable cash flows, attractive dividend yields, and strong balance sheets. REIT fundamentals remained sound, supported by moderate leverage levels, ample liquidity, and improving operating trends across most major property types. 

Performance dispersion across regions was pronounced. U.S. REITs outperformed the global index, driven by strong operating fundamentals and sustained investor demand for growth-oriented real asset exposures. Asia Pacific results were mixed but constructive, with Japan standing out due to improving rental growth, disciplined capital management, and shareholder friendly actions. In contrast, European listed real estate underperformed, reflecting lingering office market weakness, elevated capital expenditure requirements, and uneven leasing conditions, particularly in secondary assets and slower growth economies.