Real estate stocks snap monthly winning streak in March

[Close-up of individual using stylus to interact with virtual housing checklists on screen symbolizing real estate choice and digital property search]
Chayada Jeeratheepatanont

Real estate stocks closed the week higher, but snapped their monthly winning streak in March.

The sector outperformed [https://seekingalpha.com/news/4558858-real-estate-stocks-outperform-broader-markets-for-second-straight-month] broader markets for the second consecutive month of 2026 in February, cementing expectations of a REIT revival in 2026.

However, March was different.

Treasury yields surged [https://seekingalpha.com/news/4570688-treasury-yields-surge-in-march-posting-biggest-monthly-jump-since-2024] in the month of March, marking their most significant monthly increase since 2024 as investors recalibrated expectations around interest rates and economic resilience due to the ongoing Middle East conflict.

The sharp rise was most pronounced in shorter-dated securities, with the rate-sensitive U.S. 2-Year Treasury yield (US2Y [https://seekingalpha.com/symbol/US2Y#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) climbing 41 basis points over the month to 3.79%.

Longer-term yields also moved decisively higher, reflecting persistent inflation concerns and shifting market sentiment. The benchmark U.S. 10-year Treasury yield (US10Y [https://seekingalpha.com/symbol/US10Y#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) rose substantially, gaining several dozen basis points to hover near 4.32%.

Meanwhile, the U.S. 30-year Treasury yield (US30Y [https://seekingalpha.com/symbol/US30Y#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) followed suit, advancing 28 basis points to 4.89%.

The synchronized increase across the yield curve underscores a broad repricing in fixed-income markets, as investors weigh the outlook for monetary policy, inflation, and overall economic strength for the second quarter.

Mortgage rates continued to rise [https://seekingalpha.com/news/4572279-long-term-mortgage-rates-hit-their-highest-level-in-about-seven-months] throughout the month, while mortgage applications continued to dwindle [https://seekingalpha.com/news/4571146-mortgage-demand-continues-to-fall-amid-rising-rates].

"Significant uncertainty affecting all asset classes emerged over the prior month as the war with Iran has continued. Prior to the conflict, most REIT sectors had accumulated solid year-to-date returns," noted [https://www.reit.com/news/blog/market-commentary/reits-underperformed-broad-market-equities-march-outperforming-year] Nareit in its recent report.

As of March 31, the dividend yield on the FTSE Nareit All Equity REITs index was 4.00% and the FTSE Nareit Mortgage REITs Index yielded 12.96%, compared to 1.17% for the S&P 500, added Nareit.

The S&P 500 Real Estate Index Sector (SP500-60 [https://seekingalpha.com/symbol/SP500-60]) declined 5.78% month-over-month in March to 259.98 points, while the accompanying State Street Real Estate Select Sector SPDR ETF (XLRE [https://seekingalpha.com/symbol/XLRE]) retreated 6.27% to $40.83. Comparatively, the broader S&P 500 index lost 4.34% to close at 6,528.47 points.

In March, the Dow Jones REIT Indx Equity REIT Total Return Index (REIT:IND [https://seekingalpha.com/symbol/REIT:IND]) dipped 6.14%, while the FTSE Nareit All Equity REITs index fell 6.75%.

WEEKLY WINNERS & LOSERS

SBA Communications (SBAC [https://seekingalpha.com/symbol/SBAC]) topped the weekly gainers among largecap stocks, adding 22.79% from the prior week to close at $204.04.

The stock jumped after a report [https://seekingalpha.com/news/4572353-sbac-communications-gains-on-report-its-exploring-a-possible-sale] that it's exploring options, including a potential sale, after getting takeover interest.

Other telecom tower REITs such as Crown Castle (CCI [https://seekingalpha.com/symbol/CCI]) (+8.73% W/W to $84.78) were also gaining on the back of the report.

KE Holdings (BEKE [https://seekingalpha.com/symbol/BEKE]) (-3.33% W/W to $14.81) and CoStar Group (CSGP [https://seekingalpha.com/symbol/CSGP]) (-3.27% W/W to $39.95) led the decliners in the category.

For the midcap losers, Fermi (FRMI [https://seekingalpha.com/symbol/FRMI]) topped the list with an 11.92% dip to $5.36.

The stock plunged after the data center REIT reported [https://seekingalpha.com/news/4570141-fermi-stock-plunges-after-reporting-fq4-loss-no-progress-in-securing-tenant] a GAAP net loss of $486.4M, or $1.13 per share, for the period from January 10, 2025, (inception) to December 31, 2025.

The company failed to disclose any progress in securing its first definitive tenant lease.

Alexandria Real Estate Equities (ARE [https://seekingalpha.com/symbol/ARE]) (-9.96% W/W to $43.23) and Compass (COMP [https://seekingalpha.com/symbol/COMP]) (-7.22% W/W to $7.07) followed in the list.

For the advancers, Colliers International (CIGI [https://seekingalpha.com/symbol/CIGI]) (+9.23% W/W to $107.59) and The St. Joe Company (JOE [https://seekingalpha.com/symbol/JOE]) (+8.01% W/W to $65.15) were notable names.

For smallcap gainers, Smith Douglas Homes (SDHC [https://seekingalpha.com/symbol/SDHC]) topped the list. The stock advanced 10.30% from the prior week to $13.49.

Hudson Pacific Properties (HPP [https://seekingalpha.com/symbol/HPP]) (-7.83% W/W to $5.65) and Industrial Logistics Properties Trust (ILPT [https://seekingalpha.com/symbol/ILPT]) (-7.81% W/W to $5.43) led the losers.

This week, analysts from Wells Fargo, Piper Sandler, and Morgan Stanley lowered their price targets on the stock.

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