REITs slipped 0.5% in July as Q2 momentum cooled, outpacing the Nasdaq's 3.2% drop but falling short of the S&P 500's near-flat return, per 2MCAC data.
REITs posted an average return of -0.49% in July, trailing the S&P 500 (-0.1%) but beating the Nasdaq Composite (-3.2%), according to data compiled by 2MCAC and reported by Seeking Alpha contributor Simon Bowler. The July slip snapped a streak of three consecutive monthly gains. The average second-quarter return exceeded 4%, Bowler said.
Bowler disclosed long positions in multifamily REITs NexPoint Residential and Centerspace. He said the relative outperformance against the Nasdaq reflected a rotation out of growth stocks into income-producing real estate assets, though the broader equity market held up better.
The S&P 500 inched down 0.1% in July, while the Dow Jones Industrial Average ended the month roughly flat. The Nasdaq's 3.2% decline made it the worst-performing major index, as technology shares came under pressure from rising long-term bond yields and cautious earnings guidance from several large-cap names.
The average REIT return in July pulled back from the prior quarter's gains but remained positive on a year-to-date basis through the end of the month, Bowler noted.
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