REITs were rolling out of the gates in early-2026, coming back into favor amid a HALO trade (Heavy Assets, Low Obsolescence) after a half-decade of rate headwinds and unfavorable narrative. The oil price surge tied to the Iran conflict has complicated the rotation by sending rates soaring, yet REITs have remained surprisingly resilient in recent weeks, maintaining sizable year-to-date outperformance. REIT-rate correlations have eased in recent quarters, signaling a more favorable "regime change" where performance is driven by property fundamentals rather than macro forces, following a prolonged period of rate-dominated.
