NewsMV

REITs Fall 5.7% in September as 10-Year Yield Hits 5.27%

10/6/2026

The FTSE Nareit All Equity REITs Index dropped 5.7% in September, according to Nareit’s monthly REIT commentary, as the 10-year Treasury yield climbed to 5.27%.

The decline left listed real estate significantly behind the broader market, with the Russell 1000 slipping only 0.6% and the Dow Jones U.S. Total Stock Market losing 0.7% over the same period.

Nareit attributes the sector's underperformance to rising bond yields, which weigh on REITs more heavily than on the general stock market.

The Federal Reserve raised the federal funds rate by 25 basis points to combat persistent inflation, driving the 10-year yield to a level Nareit says has not been seen in nearly 25 years.