This Asset Class Has Lagged the Market for Years But Was the Best Performer in June. Time to Invest?

Real estate investment trusts (REITs) rebounded strongly in June and are up 9.5% in 2026, outperforming the broader market. After years of underperformance due to post-pandemic trends and elevated interest rates, REITs are benefiting from workers returning to offices and malls, data center growth driven by AI, and moderating interest rates. Key performing categories include lodging REITs (up 43%), data center REITs (up 33%), and healthcare REITs (up 20%), while only gaming and telecommunications REITs are down for the year.