Real estate stocks post negative returns this week, 2025-end trajectory unpredictable

[Real Estate Investment Trust Concept and Market Growth for Future Profits, Graphs Showing Rising House Prices, Interest Rates, Mortgages, Consumer Loans, and Investment Opportunities]
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The direction of real estate stocks remains unpredictable year-to-date. However, as estimated [https://seekingalpha.com/news/4457350-reits-estimated-to-see-10-returns-in-2025---jp-morgan] long before, returns across property types are set to vary significantly.

For the week, the S&P 500 Real Estate Index Sector (SP500-60 [https://seekingalpha.com/symbol/SP500-60]) fell 1.50% to close at 258.40, while its accompanying Real Estate Select Sector SPDR Fund ETF (XLRE [https://seekingalpha.com/symbol/XLRE]) was down 1.63% to 40.99.

The Dow Jones REIT Indx Equity REIT Total Return Index (REIT:IND [https://seekingalpha.com/symbol/REIT:IND]) retreated 1.64%, while the FTSE Nareit All Equity REITs index dropped 1.68%.

Meanwhile, the year-to-date returns, though marginal on average, vary significantly across property types.

Among the S&P 500 real estate subsectors, health care REITs are on track to log the highest returns. The subsector could see ~30% returns in 2025.

Industrial REITs are estimated to follow, with about 20% returns this year.

Meanwhile, residential REITs could emerge as a laggard, with roughly 14% of negative returns expected in 2025. The subsector continues to battle affordability challenges [https://seekingalpha.com/news/4521306-cost-of-living-affordability-is-on-the-agenda-in-a-big-way] and supply constraints [https://seekingalpha.com/news/4503870-resilient-consumers-and-small-businesses-lead-to-improved-charge-off-outlook-jpmorgan-cfo-says].

COMPANY NEWS

* SL Green Realty (SLG [https://seekingalpha.com/symbol/SLG]) announced [https://seekingalpha.com/news/4529054-sl-green-stock-dips-after-2026-earnings-guidance-dividend-frequency-change-other-reits-down] 2026 earnings guidance that fell short of consensus and declared a change in dividend payment frequency to quarterly from monthly.
* Hudson Pacific Properties (HPP [https://seekingalpha.com/symbol/HPP]) has revised [https://seekingalpha.com/news/4528784-hudson-pacific-sells-element-la-for-231m-revises-q4-ffo-outlook-to-015025] its Q4 FFO outlook to $0.15–$0.25 (excluding specified items) (vs. consensus of $0.24).
* Ryman Hospitality Properties (RHP [https://seekingalpha.com/symbol/RHP]) raised [https://seekingalpha.com/news/4528731-ryman-hospitality-properties-raises-quarterly-dividend-by-43-to-120share] its quarterly dividend by 4.3% to $1.20 per share.
* Equinix (EQIX [https://seekingalpha.com/symbol/EQIX]) announced [https://seekingalpha.com/news/4528311-equinix-cfo-keith-taylor-plans-to-retire] CFO Keith Taylor's intention to retire in 2026.
* Essex (ESS [https://seekingalpha.com/symbol/ESS]) priced [https://seekingalpha.com/news/4528306-essex-prices-350m-of-senior-notes] an underwritten public offering of $350M of 4.875% senior notes due 2036 at 99.093% of par value with a yield to maturity of 4.988%.
* Compass (COMP [https://seekingalpha.com/symbol/COMP]) disclosed [https://seekingalpha.com/news/4528071-compass-pulls-refiles-hsr-notification-for-anywhere-real-estate-deal] that it pulled and refiled its HSR notification for its planned acquisition of Anywhere Real Estate (HOUS [https://seekingalpha.com/symbol/HOUS]).
* Ventas (VTR [https://seekingalpha.com/symbol/VTR]) has priced [https://seekingalpha.com/news/4527882-ventas-announces-pricing-of-500m-senior-notes-offering] an underwritten public offering of $500M of 5.000% senior notes due 2036, at an issue price equal to 99.510% of the principal amount of the notes.
* American Tower (AMT [https://seekingalpha.com/symbol/AMT]) priced [https://seekingalpha.com/news/4527878-american-tower-prices-senior-notes-offering-for-8395m] its $850M registered public offering of senior unsecured notes due 2032 at 99.685% of their face value.
* Blackstone has agreed to sell [https://seekingalpha.com/news/4527325-blackstone-offloads-stake-in-citycenter-las-vegas-complex-to-realy-income] its preferred equity investment in the real estate of CityCenter Las Vegas to Realty Income (O [https://seekingalpha.com/symbol/O]).
* Broadstone Net Lease (BNL [https://seekingalpha.com/symbol/BNL]) sees [https://seekingalpha.com/news/4526806-broadstone-net-lease-expects-4-rise-in-2026-affo-per-share] 2026 AFFO per share at $1.53 to $1.57, representing ~4% growth at the midpoint. The consensus FFO estimate stands at $1.57.
* Dividend announcements came from Global Self Storage [https://seekingalpha.com/news/4527322-global-self-storage-declares-0_0725-dividend] (SELF [https://seekingalpha.com/symbol/SELF]), Centerspace [https://seekingalpha.com/news/4527331-centerspace-declares-0_77-dividend] (CSR [https://seekingalpha.com/symbol/CSR]), DiamondRock Hospitality [https://seekingalpha.com/news/4528083-diamondrock-hospitality-declares-008-dividend-stub-dividend-of-004] (DRH [https://seekingalpha.com/symbol/DRH]), Camden Property Trust [https://seekingalpha.com/news/4528319-camden-property-trust-declares-1_05-dividend] (CPT [https://seekingalpha.com/symbol/CPT]), Saul Centers [https://seekingalpha.com/news/4528686-saul-centers-declares-0_59-dividend] (BFS [https://seekingalpha.com/symbol/BFS]), Prologis [https://seekingalpha.com/news/4528540-prologis-declares-1_01-dividend] (PLD [https://seekingalpha.com/symbol/PLD]), SITE Centers [https://seekingalpha.com/news/4528749-site-centers-declares-1_00-dividend] (SITC [https://seekingalpha.com/symbol/SITC]), VICI Properties [https://seekingalpha.com/news/4528744-vici-properties-declares-0_45-dividend] (VICI [https://seekingalpha.com/symbol/VICI]), American Tower [https://seekingalpha.com/news/4528743-american-tower-declares-1_70-dividend] (AMT [https://seekingalpha.com/symbol/AMT]), Global Medical REIT [https://seekingalpha.com/news/4528734-global-medical-reit-declares-0_75-dividend] (GMRE [https://seekingalpha.com/symbol/GMRE]), Douglas Emmett [https://seekingalpha.com/news/4529110-douglas-emmett-declares-0_19-dividend] (DEI [https://seekingalpha.com/symbol/DEI]).

WINNERS & LOSERS

Among the S&P 500 real estate stocks, Alexandria Real Estate Equities (ARE [https://seekingalpha.com/symbol/ARE]) was the worst-performing stock of the week. ARE was down 15.26% from the prior week to $45.48.

The life sciences REIT slashed [https://seekingalpha.com/news/4528044-alexandria-real-estate-equities-cuts-dividend-by-45-to-072share] its quarterly dividend by almost half to $0.72. Also, the company said it expects [https://seekingalpha.com/news/4528053-alexandria-real-estate-equities-trades-lower-as-2026-ffo-guidance-falls-short-of-consensus] 2026 FFO per share to be in the range of $6.25 to $6.55, or $6.40 at the midpoint. Comparatively, the consensus estimate stands at $6.91.

Healthpeak Properties (DOC [https://seekingalpha.com/symbol/DOC]) (-6.79% W/W to $17.02) and BXP (BXP [https://seekingalpha.com/symbol/BXP]) (-4.26% W/W to $69.28) were the next on the list.

For the outliers, Digital Realty Trust (DLR [https://seekingalpha.com/symbol/DLR]) added 2.88% to close the week at $164.73. The data center REIT announced [https://www.globenewswire.com/news-release/2025/12/03/3199337/0/en/digital-realty-announces-redemption-of-2-500-guaranteed-notes-due-2026.html] an intent to redeem all of its outstanding 2.500% guaranteed notes due 2026 this week.

For the broader real estate sector, Ashford Hospitality Trust (AHT [https://seekingalpha.com/symbol/AHT]) (-11.02% W/W to $3.15) and Franklin Street Properties (FSP [https://seekingalpha.com/symbol/FSP]) (-10.44% W/W to $0.93) were the significant losers.

Here is a look at the subsector performances:
[S&P, Nareit]
Percentage-wise price change across real estate indices

MORE ON REAL ESTATE

* Homebuilders Struggle [https://seekingalpha.com/article/4829162-homebuilders-struggle]
* The 2026 Playbook: Why Housing Is The New Tech [https://seekingalpha.com/article/4827337-the-2026-playbook-why-housing-is-the-new-tech]
* The top-rated U.S. REIT stocks by SA Quant as sector sees valuation improvement [https://seekingalpha.com/news/4529057-the-top-rated-us-reit-stocks-by-sa-quant-as-sector-sees-valuation-improvement]
* REITs see a rise in valuation in November - report [https://seekingalpha.com/news/4528918-reits-see-a-rise-in-valuation-in-november---report]
* Seeking Alpha’s Quant Rating on The Real Estate Select Sector SPDR® Fund ETF [https://seekingalpha.com/symbol/XLRE/ratings/quant-ratings]