Real Estate

Why consider US REITs now?

July 21, 2025
Bryan Richardson
Bryan Richardson
CIMA® Senior Client Portfolio Manager, Value Equities
Bhavik Desai
Product Director
Why consider US REITS now?

With global trade tensions and economic uncertainty in the headlines, US real estate investment trusts (REITs) stand out as a potentially resilient investment option. Here’s why:

US REITs tend to be more insulated from global shocks

Most US REITs make nearly 90% of their revenue domestically, compared to 72% for typical U.S. stocks.1 This means they’re less sensitive to global trade disruptions. 

Some REIT sectors are more resilient

Healthcare, residential, and needs-based retail are less affected by trade disruptions, while office, lodging, and timber are more vulnerable.

US REITs are attractively priced

They’re trading at a -2.79x earnings multiple discount to US stocks — one of the widest gaps in decades.2 Historically, when REITs have traded at a discount of -2.0x or greater, they’ve outperformed US stocks by approximately 2%-4% annually.3

Read our complete report: US REITs possess defensive characteristics amid global trade tensions and a potentially attractive valuation entry point.

  • 1

    Sources: Wells Fargo and REIT company filings as of March 31, 2025. US REITs are represented by FTSE Nareit All Equity REITs Index. US stocks represented by S&P 500 Index.
  • 2

    Sources: Invesco Listed Real Estate and Green Street. Data as of Q1 2025. US REITs represented by FTSE Nareit All Equity REITs Index. US stocks represented by S&P 500 Index. SNL Data source, Consensus estimates, Bloomberg L.P. and Standard & Poor’s from Q2 1995-Q1 2025. REIT earnings utilized Funds From Operations (FFO), a proxy for cash flow per share.
  • 3

    Sources: US REITs represented by FTSE Nareit All Equity REITs Index. US stocks represented by S&P 500 Index. Zephyr StyleADVISOR and Bloomberg L.P encompassing 30-year period from Q2 1995- Q1 2025

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