Summary

• U.S. listed real estate, as represented by the FTSE Nareit Equity REITs Index, posted positive results, outperforming the S&P 500® index by 9.15% year-to-date on a total return basis.
• The Virtus Duff & Phelps Real Estate Securities Fund increased positions to data center REITs during last year's underperformance, and they subsequently outperformed in early 2026.
• Equinix, Digital Realty, and Iron Mountain each issued robust guidance for 2026 and experienced growth thanks to rising demand for interconnection, hyperscale, and AI.
• American Homes 4 Rent shares underperformed as the company's 2026 guidance fell short of consensus, disappointing investors.
• Mid-America Apartment Communities stock underperformance versus the benchmark was driven by job growth and demographic concerns coupled with lingering elevated supply in its sunbelt markets.

Market Review

U.S. markets entered the year navigating mixed economic signals and rising policy uncertainty, but the quarter ultimately became defined by geopolitical shock rather than domestic fundamentals. January and February were characterized by a fragile disinflation

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