Real estate stocks outperform broader markets

[Real estate Business Trends Graphs and charts]
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Real estate stocks surged, outperforming the broader markets, as rising Treasury yields took a breather mid-week with investors eyeing a possible U.S.-Iran deal [https://seekingalpha.com/news/4595341-wall-street-climbs-higher-as-nvidia-earnings-data-looms].

President Donald Trump reportedly said [https://seekingalpha.com/news/4595392-trump-says-us-in-final-stages-of-iran-negotiations---report] Wednesday that the U.S. is in the "final stages" of talks with Iran.

Long-term Treasury yields fell [https://seekingalpha.com/news/4595341-wall-street-climbs-higher-as-nvidia-earnings-data-looms], with the U.S. 10 Year Treasury yield (US10Y) falling 9 basis points to 4.57%. The U.S. 30 Year Treasury yield (US30Y) moved down 6 basis points to 5.11%.

The trend differed from the prior week, when yields surged [https://seekingalpha.com/news/4594156-real-estate-stocks-edge-down-as-treasury-yields-surge-borrowing-costs-rise] and borrowing costs across the curve reached about one-year highs. Real estate stocks declined on a weekly basis, underperforming the broader market.

However, this week, the S&P 500 Real Estate Index Sector (SP500-60 [https://seekingalpha.com/symbol/SP500-60]) increased 3.04% to close at 282.91 points, while the accompanying State Street Real Estate Select Sector SPDR ETF (XLRE [https://seekingalpha.com/symbol/XLRE]) was up 3.08% to $44.56.

The Dow Jones REIT Indx Equity REIT Total Return Index (REIT:IND [https://seekingalpha.com/symbol/REIT:IND]) rose 3.18%, while the FTSE Nareit All Equity REITs index advanced 3.14%.

XLRE was the third largest gainer among the 11 S&P 500 sectors.

WEEKLY WINNERS & LOSERS

American Tower (AMT [https://seekingalpha.com/symbol/AMT]) topped the gainers, adding 7.75% from the prior week to close at $183.85.

The week saw AMT CFO Rodney Smith say [https://seekingalpha.com/article/4906518-american-tower-corporation-amt-presents-at-j-p-morgan-54th-annual-global-technology-media-and] that from next year onward, the telecom tower REIT will see churn decreasing rapidly and new business probably accelerating. Churn permeated [https://www.capitaliq.spglobal.com/apisv3/spg-webplatform-core/news/article?id=101937893&KeyProductLinkType=14&utm_campaign=top_news_4&utm_medium=top_news&utm_source=news_home] most panel discussions at this year’s Fiber Connect 2026 in Orlando, Fla., held May 16-19.

Sun Communities (SUI [https://seekingalpha.com/symbol/SUI]) followed, advancing 6.10% week-over-week to $127.75.

The residential REIT announced [https://seekingalpha.com/news/4595612-sun-communities-to-sell-u-k-assets-in-1_03b-all-cash-deal] a sale of its UK asset portfolio, including the Park Holidays business, to funds affiliated with Aermont Capital in an all-cash transaction valued at about $1.03B.

Federal Realty Investment Trust (FRT [https://seekingalpha.com/symbol/FRT]) (+5.82% W/W to $119.75) and Crown Castle (CCI [https://seekingalpha.com/symbol/CCI]) (+5.54% W/W to $91.46) were other notable winners.

KE Holdings (BEKE [https://seekingalpha.com/symbol/BEKE]) (-9.74% W/W to $16.40) was the biggest loser in the category. The stock declined despite a strong Q1 earnings report [https://seekingalpha.com/news/4594939-ke-holdings-shares-jump-after-q1-profit-surge] as investors digested a continued weakness in housing transactions at the Chinese real estate platform.

Fermi (FRMI [https://seekingalpha.com/symbol/FRMI]) was the biggest decliner among midcap stocks, retreating 8.14% week-over-week to $5.98.

The stock suffered as ousted CEO Toby Neugebauer continued [https://seekingalpha.com/article/4907734-fermi-inc-frmi-shareholder-analyst-call-prepared-remarks-transcript] his efforts to hold a special meeting of shareholders despite the data center REIT's efforts in the other direction.

Alexandria Real Estate Equities (ARE [https://seekingalpha.com/symbol/ARE]) (+7.56% W/W to $48.37), Park Hotels & Resorts (PK [https://seekingalpha.com/symbol/PK]) (+6.97% W/W to $11.51), and Ryman Hospitality Properties (RHP [https://seekingalpha.com/symbol/RHP]) (+6.84% W/W to $111.96) led the midcap gainers.

For smallcap gainers, Maui Land & Pineapple Company (MLP [https://seekingalpha.com/symbol/MLP]) (+15.72% W/W to $17.30) and Chiron Real Estate (XRN [https://seekingalpha.com/symbol/XRN]) (+11.60% W/W to $37.42) led the pack.

Franklin BSP Realty Trust (FBRT [https://seekingalpha.com/symbol/FBRT]) (-6.31% W/W to $8.47) topped the loser.

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

MORE ON REAL ESTATE

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* Office CRE: A Fragile Equilibrium In A Weakening Market [https://seekingalpha.com/article/4896091-office-cre-a-fragile-equilibrium-in-a-weakening-market]
* Mortgage rates fluctuate in narrow range [https://seekingalpha.com/news/4595947-mortgage-rates-fluctuate-in-narrow-range]
* Only two sectors are driving the S&P 500 bull market higher since 2022 [https://seekingalpha.com/news/4595324-only-two-sectors-are-driving-the-s-and-p-500-bull-market-higher-since-2022]