NEW YORK, Feb 1, 2026, 13:33 (EST) — Market closed.
- U.S. real estate stocks ended Friday little changed, with the XLRE sector ETF near flat
- Investors are re-pricing the Fed outlook after Trump’s Warsh pick and a hotter inflation read
- Next up: Simon Property Group results after Monday’s close; U.S. jobs report due Feb. 6
U.S. real estate stocks head into Monday with rates back in the driver’s seat after a choppy end to January. The Real Estate Select Sector SPDR Fund (XLRE) last traded at $41.43, up about 0.1% from its prior close.
The backdrop has turned less friendly for rate-sensitive corners of the market after President Donald Trump tapped former Federal Reserve Governor Kevin Warsh as his pick to succeed Fed Chair Jerome Powell. “Markets are calibrating to Trump’s pick of Kevin Warsh … and the outlook for monetary policy,” said Michael Hans, chief investment officer at Citizens Wealth. Reuters
Why it matters now: real estate investment trusts, or REITs, tend to trade off long-term borrowing costs because many landlords lean on the debt market and investors price their dividends against bond yields. The U.S. 10-year Treasury yield ended Friday at 4.26%, according to Treasury data.
Inflation data have not helped. The Labor Department said the Producer Price Index (PPI) for final demand rose 0.5% in December after a 0.2% increase in November, keeping attention on whether price pressure is easing fast enough for the Fed to cut again.
Other real estate gauges were also quiet into the weekend. Vanguard’s Real Estate ETF (VNQ) last traded at $90.80 and iShares U.S. Real Estate ETF (IYR) at $96.21.
Moves under the hood were mixed among big REIT names. American Tower (AMT) fell 1.1% to $179.28, while Simon Property Group (SPG) rose 0.8% to $191.31 and Prologis (PLD) edged up 0.1% to $130.56.
XLRE is a sector ETF built to mirror the real estate slice of the S&P 500, holding real estate management and development companies and equity REITs while excluding mortgage REITs, according to State Street Global Advisors.
Earnings could bring the next clean catalyst. Simon said it will release fourth-quarter 2025 results after the market close on Feb. 2, followed by a conference call scheduled for 5 p.m. ET.
Macro traders will also be watching the calendar for fresh direction on growth and rates. The Labor Department has the January employment report scheduled for 8:30 a.m. ET on Feb. 6.
But the setup cuts both ways. If data come in strong and push yields higher again, REITs can slip even if property-level fundamentals hold up. A softer jobs print would ease pressure, though inflation surprises have not gone away.
For now, real estate investors open the week watching Treasury yields and Simon’s results for any read-through on shoppers, tenants and rent growth. The bigger marker is Friday’s jobs report, which could reset rate bets before the next session gets underway.
