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Today's Exclusive News Three Oversold REITs With Strong FundamentalsReported by Dan Schmidt. Originally Published: 3/30/2026. 
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.
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There was a time when the biggest worry in markets was commercial real estate (CRE), especially for owners of office buildings as many employees now work from home. You likely won't see CRE concerns leading the financial headlines anymore, but that's not necessarily because conditions have improved — there's still a lot going on. Real Estate Investment Trusts (REITs) have been pulled down with the broader market over the past month, and commercial assets continue to worry investors. However, a few REITs are flashing Oversold on key technical indicators, and we've identified three that also have solid fundamental tailwinds. Why REITs Could Be Primed for Strong Growth in 2026 REITs have been one of the more stagnant asset classes over the past five years, with little price appreciation beyond dividends. The Vanguard Real Estate ETF (NYSEARCA: VNQ), one of the largest broad-based REIT ETFs with more than $33 billion in assets, has lost 5.5% over the last five years; much of that decline occurred in the past month (down 8%). Until the Iran war broke out, REIT investors were just barely above water, relying primarily on dividends for returns. The AI bottleneck has shifted from chips to power. Goldman Sachs projects demand growing 15% per year, with 40% of AI facilities constrained by electricity shortages by 2027. One company holds $1.5 billion in backlog orders for the exact equipment these data centers need - yet Wall Street still prices it like a sleepy industrial stock. The June SpaceX IPO could change that fast. See the math Wall Street is missing before the SpaceX IPO Still, there are reasons to be constructive on REITs in 2026. Several funds have reached deeply Oversold levels, which technical traders often view as setup for a rebound. And despite an interest-rate environment that looks to remain elevated, 2026 is expected to be a better year for the sector. JPMorgan Research projects overall FFO growth of 6% for the sector this year. Funds From Operations (FFO) adjusts net income by adding back depreciation and amortization and subtracting gains from non-recurring property sales, providing a clearer view of a REIT's operating cash flow than net income alone. Because REITs are typically dividend-focused, sustainable dividend growth — as signaled by rising FFO — matters more than short-term stock gains. These Three REITs Have Strong Fundamentals and Flashing Oversold Signals When identifying oversold stocks, it's important to confirm signals with multiple technical indicators. The Relative Strength Index (RSI) is a common choice for its simplicity and reliability, but it should not be used in isolation. For the three names below we pair the RSI with other tools, such as the Moving Average Convergence Divergence (MACD), to build a more complete picture. Simon Property Group: Stabilized By Affluent Clientele Base Simon Property Group Inc. (NYSE: SPG), once synonymous with malls, has repositioned itself as a destination operator focused on affluent customers. While many traditional malls faded, SPG concentrated on high-end centers and acquired prime retail properties catering to luxury brands. That strategy appears to be working: in Q4 2025, management reported record annual FFO of $4.8 billion ($12.73 per share) and guided 2026 FFO to a range of $13.00–$13.25. The company also announced a $2 billion share repurchase, nearly 3% of its market cap, and reported portfolio occupancy above 96% with a 15% year-over-year (YOY) increase in its leasing pipeline.  Simon's fundamentals show little sign of distress; the stock's recent weakness more likely reflects the wider market retreat than company-specific problems. Shares found support at the 200-day moving average just as the RSI reached Oversold territory. If the stock holds above the 200-day MA, this could be an attractive entry point for investors watching for a technical rebound. Rexford Industrial Realty: Opportunities in California Industrial Zones Southern California contains the largest infill industrial market in the U.S., with more than 1.8 billion square feet of space. Zoning and regulatory constraints often limit new supply, creating high barriers to entry and driving rents higher — a dynamic that benefits local incumbents like Rexford Industrial Realty Inc. (NYSE: REXR), which owns more than 400 properties in the market. Although the stock has underperformed over the past five years, Rexford is in transition: former COO Laura Clark was named CEO and the company authorized $500 million in share buybacks.  The company has a near-term catalyst on April 15, when it reports Q1 2026 earnings, which could halt the stock's slide. Shares are down about 16% year-to-date (YTD), including a 14% drop in the last month alone. The stock is approaching its April 2025 lows, and both the RSI and MACD suggest downward momentum is decelerating. A bullish MACD crossover ahead of the earnings report would be a useful confirmation of a potential shift in momentum. Vornado Realty Trust: Contrarian Play on New York Real Estate An investment in Vornado Realty Trust (NYSE: VNO) is a contrarian bet on New York City commercial real estate — a market that was severely challenged during the COVID-19 pandemic and has had a slow recovery. That said, Vornado reported an industry-leading 4.6 million square feet of Manhattan leasing in 2025, with notable momentum in its PENN 1 and PENN 2 districts. Management also added high-end properties on Fifth Avenue and East 54th Street in its Q4 2025 results, and guided 2026 FFO to be roughly in line with 2025 — a conservative outlook that leaves room for upside.  VNO's chart looks similar to REXR's, with signs of a rebound emerging. The RSI has lingered in Oversold territory for much of the past two months, near spring 2025 lows. Crucially, the MACD has crossed above its signal line, indicating that selling pressure may be easing and buyers could be returning. |