U.S. real estate REITs beat market with 5.6% return amid rising rates and tariffs in Q1 2026

In the first quarter of 2026, U.S. real estate investment trusts (REITs) showed strong resilience, delivering a 5.6% return through the Janus Henderson U.S. Real Estate ETF, outperforming the FTSE Nareit Equity REITs Index which returned 4.8%. Key contributors included data center landlords Digital Realty and Equinix, along with hotel brand Marriott International, while companies like CBRE Group and Mid-America Apartment Communities detracted. Elevated interest rates and tariffs are expected to continue limiting new construction, which may reduce supply and strengthen pricing power across the sector going forward.