REIT Q1 2025 Earnings Scorecard: No Tariff Trouble

Property Sector Earnings Scorecards

Data Center: (Final Grade: A-)

• FFO Guidance: 3 Raise
• Top Performer: Digital Realty (DLR): +15.1%
• Worst Performer: Equinix (EQIX) +11.6%

Cell Tower: (Final Grade: A-)

• FFO Guidance: FFO: 2 Raise, 1 Maintain
• Top Performer: Crown Castle (CCI): +8.3%
• Worst Performer: American Tower (AMT): +2.8%

Apartment: (Final Grade: A-)

• FFO Guidance: FFO: 1 Raise, 10 Maintain
• Top Performer: Camden Property (CPT): +9.1%
• Worst Performer: BRT Apartments (BRT): +0.5%

Single-Family Rental: (Final Grade: B+)

• FFO Guidance: 2 Maintain
• Top Performer: American Homes (AMH): +9.8%
• Worst Performer: Invitation Homes (INVH) +8.2%

Net Lease: (Final Grade: B+)

• FFO Guidance: 4 Raise, 9 Maintain
• Top Performer: Global Net Lease (GNL): +8.4%
• Worst Performer: Modiv (MDV): -10.5%

Industrial: (Final Grade: B+)

• FFO Guidance: 1 Raise, 7 Maintain, 1 Lower
• Top Performer: Plymouth (PLYM): +11.2%
• Worst Performer: Americold (COLD): -11.2%

Healthcare: (Final Grade: B+)

• FFO Guidance: 6 Raise, 5 Maintain, 1 Lower
• Top Performer: American Healthcare (AHR): +18.5%
• Worst Performer: Omega Healthcare (OHI): -5.3%

Residential mREITs: (Final Grade: B+)

• Change in Book Value Q/Q: -0.4%
• Top Performer: Angel Oak Mortgage (AOMR): +33.7%
• Worst Performer: PennyMac Mortgage (PMT): +4.5%

Commercial mREITs: (Final Grade: B+)

• Change in Book Value Q/Q: -1.3%
• Top Performer: Angel Oak Mortgage (AOMR): +33.7%
• Worst Performer: Ready Capital (RC): -6.3%

Self-Storage: (Final Grade: B)

• FFO Guidance: 1 Raise, 3 Maintain
• Top Performer: CubeSmart (CUBE): +13.2%
• Worst Performer: National Storage (NSA): +5.8%

Strip Centers: (Final Grade: B)

• FFO Guidance: 1 Raise, 3 Maintain
• Top Performer: Kite Realty (KRG): +9.6%
• Worst Performer: Whitestone REIT (WSR): -2.3%

Casino: (Final Grade: B)

• FFO Guidance: 1 Raise, 1 Maintain
• Top Performer: VICI Properties (VICI): +2.5%
• Worst Performer: Gaming & Leisure Properties (GLPI): -1.3%

Office: (Final Grade: B-)

• FFO Guidance: 3 Raise, 11 Maintain
• Top Performer: Orion Properties (ONL): +20.5%
• Worst Performer: Office Properties Income (OPI): -27.8%

Billboard: (Final Grade: B-)

• FFO Guidance: 2 Maintain
• Top Performer: Outfront Media (OUT): +3.4%
• Worst Performer: Lamar Advertising (LAMR): +1.1%

Manufactured Housing: (Final Grade: B-)

• FFO Guidance: 2 Maintain, 1 Initiate
• Top Performer: Sun Communities (SUI): +3.8%
• Worst Performer: Equity Lifestyle (ELS): +0.0%

Hotels: (Final Grade: C-)

• FFO Guidance: 1 Raise, 2 Maintain, 7 Lower
• Top Performer: Xenia Hotels (XHR): +18.2%
• Worst Performer: Sunstone Hotels (SHO): +1.2%

Bottom Line: Solid Earnings, No Big Surprises

Largely immune from direct trade and tariff risks, REITs are coming back into favor after three years of historic underperformance, which had driven valuations to unusually "cheap" levels. First-quarter earnings results were generally in-line with expectations, with no major downside surprises despite the period of extreme interest rate volatility in early April.

Technology REITs were the notable upside standouts, with all three Data Center REITs and two of the three Cell Tower REITs raising their full-year FFO outlook citing surprisingly solid demand. Results from Residential REITs were surprisingly solid, with single-family rental and apartment REITs confirming that rent growth has reaccelerated slightly in early 2025 after two years of sluggish trends.

Hotel REITs were responsible for 7 of the 9 downward guidance cuts this earnings season - all relatively modest downside revisions. Cold Storage and Lab Space REITs accounted for the other two downside revisions.

Stay tuned for an extended follow-up report covering the Winners and Losers of REIT Earnings season, with notes on incremental positives and negatives we've observed across each of the major property sectors this earnings season.

About the Author

David Auerbach boasts over two decades of experience in the securities industry, specializing as an institutional trader with a focus on Real Estate Investment Trusts (REITs), Equity and Preferred stocks, MLPs, ETFs, and Closed End Funds.

Based in Dallas, TX throughout his entire career, David currently serves as the Chief Investment Officer for Hoya Capital, managing the Hoya Housing 100 ETF (Ticker: HOMZ) and The High Yield Dividend ETF (Ticker: RIET). Previously, David held the position of Managing Director at Armada ETF Advisors, the sub-advisor for the Residential REIT ETF (Ticker: HAUS) and The Private Real Estate Strategy via Liquid REITs ETF (Ticker: PRVT).

Additionally, he acts as a consultant with IRRealized, LLC, focusing on corporate access in the REIT industry. David's industry journey includes roles at World Equity Group, Esposito Securities, and Green Street Advisors where he got his start in the REIT industry.

At Esposito Securities, he played a crucial role in building the REIT/Real Estate platform and worked extensively with institutional investors, Equity REITs, and ETF issuers.

Throughout his career, David has been quoted by reputable publications such as Bloomberg, WSJ, Financial Times, REIT.com, and GlobeSt.com. He has also made notable appearances as a featured guest on networks like Yahoo Finance, TD Ameritrade, and Bloomberg.

David holds a BBA in Finance from the University of Texas at Austin (May 1999) and an MBA in Finance from Southern Methodist University (May 2005). He maintains FINRA Series 7, 24, 55, and 63 registrations.

In his leisure time, David is an avid traveler, often found crisscrossing the country in pursuit of attending as many Phish concerts as possible.

Disclaimer

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.