IRM, EQIX Lead Large-Cap REIT Momentum With 63% and 47% Gains

Iron Mountain (IRM) and Equinix (EQIX) lead the large- and mega-cap REIT momentum rankings, with six-month gains of roughly 63% and 47% respectively.

The two stocks sit at the top of a sector that is increasingly split between winners and losers. Data center and storage REITs have captured demand from cloud computing and artificial intelligence. Office and retail REITs continue to deal with occupancy shortfalls and refinancing pressure. Industrial and residential REITs have cooled after a strong post-pandemic run.

IRM benefits from two revenue streams: its traditional physical storage business, where it holds pricing power, and a growing data center division. EQIX, the largest data center REIT by market value, has seen consistent leasing from hyperscale cloud providers. Both trade at premium multiples relative to the broader REIT index.

EQIX carries an Alpha Score of 54 out of 100 from AlphaScala's model, a Mixed reading. The score reflects strong price momentum alongside valuation risk. The current rally partly discounts future leasing growth, which the next earnings report will need to confirm. Read more on the EQIX stock page.

The broader REIT sector still depends on the interest rate path. A lower rate environment would expand cap rates and reduce borrowing costs across the industry. The Federal Reserve's September decision will be the next major macro catalyst.

EQIX reports third-quarter results in late October. IRM typically follows soon after. The numbers will show whether the leasing pipeline is still accelerating or if the momentum has peaked.