In the first quarter, the Chilton REIT Composite underperformed the RMZ by producing a total return of +3.4% gross of fees and +3.3% net of fees, which compares to the RMZ’s total return of +4.8%.  However, the Chilton REIT Composite outperformed the Vanguard Real Estate Index (VNQ), our secondary benchmark, that produced a total return of +1.3%.  See the table at the bottom of the page for historical numbers.

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March Attribution Relative to RMZ

Positive contributors to relative performance for the month of March included stock selection within the shopping center and triple net sectors, and an overweight allocation to the data center sector.  Conversely, detractors from relative performance included an overweight allocation to the cell tower sector, stock selection within the healthcare sector, and an underweight allocation to the lodging sector.

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YTD Attribution Relative to RMZ

Positive contributors to relative performance for the first quarter of 2026 included an overweight allocation to the data center sector, stock selection within the shopping center sector, and an underweight allocation to the regional mall sector. Conversely, stock selection within the residential sector, an overweight allocation to the cell tower sector, and an underweight allocation to the specialty sector detracted from relative performance.

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2025 Contributors Summary

• An overweight allocation to the data center sector contributed to relative performance.  The group had a strong start to 2026 as surging hyperscaler capex for AI infrastructure generated further optimism in data center demand.

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• Stock selection within the shopping center sector also contributed to relative performance.  Notably, our overweight position in Whitestone REIT (NYSE: WSR), which has benefitted from a recently increased takeout offer, contributed to Composite relative performance.

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• An underweight allocation in the regional malls sector also contributed to relative performance.  The group’s performance remains almost entirely driven by Simon Property Group (NYSE: SPG), which experienced relative weakness after strong performance in 2025.  Note, our Composite has meaningful retail exposure through shopping center REITs, but we maintain no exposure to regional malls. 

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2025 Detractors Summary

• Stock selection within the residential sector also detracted from relative performance.  In particular, our overweight exposure to single family rentals (SFRs) was negatively impacted by the Senate proposal banning institutional owners from growing in the space.

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• An overweight allocation to the cell tower sector detracted from the Composite’s relative performance.  Most notably, the group was impacted by news of the Dish/EchoStar lease dispute.   

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• An underweight allocation to the specialty sector also detracted from relative performance.  Most notably, Iron Mountain (NYSE: IRM) outperformed due to its material data center exposure.  We continue to prefer data center exposure through the two standalone REITs, which contributed to relative performance in the quarter.

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Market Commentary

Property Type Round-Up from REITWorld 2025 | February 2026

Self-Storage REITs: Poised for an Inflection… But When? | March 2026

The Cost of Staying Public in a Discounted REIT Market | April 2026

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Additional Disclosures

The information contained herein should be considered to be current only as of the date indicated, and we do not undertake any obligation to update the information contained herein in light of later circumstances or events. This publication may contain forward looking statements and projections that are based on the current beliefs and assumptions of Chilton Capital Management and on information currently available that we believe to be reasonable, however, such statements necessarily involve risks, uncertainties and assumptions, and prospective investors may not put undue reliance on any of these statements. This communication is provided for informational purposes only and does not constitute an offer or a solicitation to buy, hold, or sell an interest in any Chilton Capital Management investment or any other security.

Past performance is not indicative of future results.  Investment returns and principal value will fluctuate so that an investor account, when redeemed, may be worth more or less than their original cost.  Current performance may be lower or higher than the performance data quoted. MSCI US REIT Index and Vanguard Real Estate ETF performance is presented as a benchmark for reference only and does not imply any portfolio will achieve similar returns, volatility or any characteristics similar to any actual portfolio.  The composition of a benchmark index may not reflect the manner in which any is constructed in relation to expected or achieved returns, investment holdings, sectors, correlations, concentrations or tracking error targets, all of which are subject to change over time.