REIT Balance Sheets Are Looking Good

Core Insights - Real estate stocks are underperforming despite two interest rate cuts by the Fed, indicating a potential opportunity with actively managed ETFs like the ALPS Active REIT ETF [1][2] Performance Metrics - The ALPS ETF shows strong fundamentals, particularly sturdy balance sheets, which may position REITs for growth opportunities in 2026 [2][3] - REITs reported a significant increase in funds from operations (FFO), reaching $21.0 billion, a 17.3% year-over-year increase, with nearly two-thirds of REITs showing FFO growth [5] - Net operating income (NOI) for REITs rose by 5.2% year-over-year, with 62% of REITs reporting increases, suggesting a more optimistic outlook for the sector [6] Occupancy Rates - Average occupancy rates for REIT-owned properties stood at 93.0%, with retail leading at 96.9%, followed by apartments at 95.7%, and industrial at 94.5%. The office sector lagged behind at 85.3% [7]