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Active Fund Managers Put Telecom REITs Ahead of Residential
Nareit said its quarterly active managers tracker for the second quarter of 2025 shows that funds are allocating more to telecom REITs (17%) than to residential (16%). This marks the first time that residential has lost the top spot since 2017.
Telecommunications was the most overweight sector relative to its index weight, invested at 136% of its index share, and had the largest annual gain for the quarter, according to Nareit. Data centers rebounded with the highest quarterly increase for the second most overweight sector, invested at 129% of its index share.
Other notable bets include office and timberlands, two sectors that have seen steady gains over the past year. Office is now equal to its index share for the first time post-pandemic, while timberlands is the third most overweight sector at 119% of its index share.
The data is based on Nareit’s analysis of quarterly investment holdings for the 23 largest actively managed real estate investment funds that focus on investing in REITs.
- ◦Sale/Acquisition
- ◦Financing
