Three Oversold REITs With Strong Fundamentals

Key Points

• Real Estate Investment Trusts (REITs) are often popular investments during turbulent times because they return so much capital to shareholders through dividends and buybacks.
• In the AI-powered surge over the last few years, REITs have become a forgotten asset class and have lagged the market.
• Now that volatility has returned, REITs could be an attractive investment, including these three with fundamental tailwinds.

There was a time when the biggest worry in markets was commercial real estate (CRE), especially for companies that own offices and workplaces where most staff now work from home. You likely won’t find CRE concerns leading the financial headlines anymore, but that’s not necessarily because conditions have improved (there’s a lot going on!). Real Estate Investment Trusts (REITs) have still been dragged down with the rest of the market over the last month, and commercial assets continue to concern investors. However, there are a few REITs that are screaming Oversold on certain technical indicators, and we’ve identified three that also have fundamental tailwinds.

Why REITs Could Be Primed for Strong Growth in 2026

REITs have been among the most boring asset classes to invest in over the last five years, with practically no appreciation beyond dividends. The Vanguard Real Estate ETF NYSEARCA: VNQ, one of the largest broad-based index REITs on the market with more than $33 billion in assets, has lost 5.5% in the last five years, although much of that has occurred in the last month (down 8%). Until the Iran war broke out, REIT investors were just barely above water, and dividends were the primary form of return.

However, there are a few reasons to be bullish on REITs in 2026. Many of these funds have reached drastically Oversold levels, and technical traders will be eyeing a rebound. And despite the interest rate environment now leaning toward higher for longer, 2026 is expected to be a good year for the asset class.

JPMorgan Research projects overall growth of 6% in the crucial Funds From Operations (FFO) metric for the sector this year. FFO measures a fund’s cash flow by adding amortization and depreciation to net income, then subtracting gains from non-recurring property sales. This metric provides a more accurate picture of cash flow than net income alone, helping gauge the sustainability of dividends. REITs tend to be a conservative investment sector, so sustainable dividend growth is often more important than stock returns.

These 3 REITs Have Strong Fundamentals and Flashing Oversold Signals

When looking for oversold stocks, it’s important to use a few technical indicators to confirm signals. The Relative Strength Index (RSI) is a popular choice due to its simple heuristics and reliability, but it should never be used alone. For these three stocks, we’ll use the RSI alongside other tools, such as the Moving Average Convergence Divergence (MACD) indicator.

Simon Property Group: Stabilized By Affluent Clientele Base

Simon Property Group Inc. NYSE: SPG, once known as the mall REIT, has repositioned itself as a “destination” operator for affluent customers. While many traditional malls faded, SPG focused on high-end malls and acquired prime retail properties for luxury brands. This approach is paying off: in Q4 2025, management reported record annual FFO of $4.8 billion ($12.73 per share) and guided 2026 FFO between $13 and $13.25. The company also announced a $2 billion share repurchase, nearly 3% of market cap, with 96%+ portfolio occupancy and a 15% year over year (YOY)_ increase in its leasing pipeline.

Simon's fundamentals show little sign of distress; the stock's recent weakness likely reflects the broader market retreat rather than company-specific problems. Shares found support at the 200-day moving average just as the RSI reached Oversold. If the stock holds above the 200-day MA, this may be an attractive entry point.

Rexford Industrial Realty: Opportunities in California Industrial Zones

Southern California boasts the largest infill industrial market, with more than 1.8 billion square feet, but zoning and regulations often restrict supply and create high barriers to entry. Naturally, that also drives up rental rates, benefiting incumbent property owners like Rexford Industrial Realty Inc. NYSE: REXR, which owns more than 400 properties in the market. The stock has been a long-term loser over the last five years, but Rexford is currently undergoing a transition: former COO Laura Clark has been appointed as the new CEO, and the company has authorized $500 million in new share buybacks.

The company has a catalyst coming on April 15, when it reports Q1 2026 earnings, which could be key to stopping the stock’s decline. Shares are down about 16% YTD, including an 14% drop in the last month alone. But now the stock is approaching its April 2025 lows, and the RSI and MACD show that the downward momentum is slowing. Look for a bullish MACD crossover as we approach the earnings report to signal a potential momentum shift.

Vornado Realty Trust: Contrarian Play on New York Real Estate

An investment in Vornado Realty Trust NYSE: VNO isn’t for the faint of heart. Yes, we’re talking New York CRE, which was left for dead during the COVID-19 pandemic and has struggled to recover. But Vornado’s management reported an industry-leading 4.6 million square feet of Manhattan leasing in 2025, with strong momentum specifically in its PENN 1 and PENN 2 districts. Management also reported the acquisition of high-end properties on Fifth Avenue and East 54th Street during its Q4 2025 results. It guided 2026 FFO to be in line with 2025 numbers, a modest projection with plenty of room for upside.

VNO shares show a chart similar to REXR, with signs of a rebound underway. The RSI has remained in Oversold territory for much of the past two months, near spring 2025 lows. Importantly, the MACD has crossed above its signal line, indicating that selling momentum may be stalling and that buyers may be returning.