Strong REIT Fundamentals Bode Well for ETFs in 2026

The article highlights the solid performance of real estate investment trusts (REITs) in the third quarter, with strong operating results and well-managed balance sheets. The ALPS Active REIT ETF (REIT) is mentioned as an actively managed ETF that can lean into REITs with sturdy balance sheets and navigate away from those dependent on Fed easing. REITs' funds from operations (FFO) increased 17.3% YoY, and net operating income (NOI) rose 5.2% YoY. Occupancy rates are also solid, with retail leading at 96.9%. The article suggests that market participants may be too gloomy on the real estate sector, setting up REITs for better performance in 2026.