---
title: "The 10-year is back at 5.01%. Listed REIT funds fell 2%"
url: "https://etf.net/news/the-10-year-is-back-at-5-01-listed-reit-funds-fell-2-2026-09-19"
published_at: "2026-09-19T18:46:29.663Z"
updated_at: "2026-09-19T18:46:29.663Z"
byline: "ETF.net Research"
---

# The 10-year is back at 5.01%. Listed REIT funds fell 2%

For the week ended Friday, September 18, Vanguard's VNQ fell 2.0% and the 10-year Treasury yield closed at 5.01%.

By ETF.net Research. Published Sep 19, 2026.

The 10-year Treasury yield was already at 5.01% on Wednesday, the day the Federal Reserve raised its overnight target a quarter point to a range of 3.75% to 4%, the first increase since 2023. It fell to **4.94%** on Thursday and closed Friday at **5.01%**, five basis points above the 4.96% of a week earlier. Vanguard's U.S. real estate fund VNQ, a $70.8 billion portfolio of listed REITs and other U.S. real-estate companies, fell **2.0%** to $92.91. That was a second week of declines. [Equity REIT funds fell 1.3% through September 11](https://etf.net/news/equity-reit-funds-fell-1-3-vaneck-s-mortgage-reit-fund-hit-a-52-week-low-2026-09-12), and VNQ is now down 5.8% over the past month. Schwab's U.S. REIT fund SCHH and State Street's S&P 500 real estate fund XLRE each fell 2.0% for the week.

Nuveen, in a September 14 commentary, had already attributed the climb toward 5% to oil above $100 a barrel and firmer inflation data. State Street, using data as of August 26, put the share of REIT debt that is fixed-rate at about **90%**, with an average maturity of about six years. Most of those coupons do not reprice when the overnight rate moves a quarter point. The buildings did not refinance this week. The shares were marked anyway.

## Manhattan is leasing. Distressed sales are still clearing cheap.

SL Green, Manhattan's largest office landlord, said Monday it has signed 129 Manhattan office leases this year totaling **1.76 million** square feet, at rents **15.8%** above the previous fully escalated rents on the same spaces. Nearwater Management took 37,563 square feet at 245 Park Avenue on an eight-year term, bringing that building to 100% leased. The company's leasing pipeline exceeded 1 million square feet. SL Green shares still fell 1.9% for the week, to $52.08.

That split is the private market's version of the same week. Wolf Commercial Real Estate, citing a CoStar analysis published Friday, said deeply discounted sales are becoming more common, with properties changing hands **20%** to nearly **100%** below prior purchase prices across office, retail, multifamily, hotel and industrial. Trophy space in Manhattan is being re-leased at higher rents. Older buildings in other cities are still being sold at a loss to the last buyer.

## Vivmark reaffirmed 2% growth and still fell 6.6%

Vivmark Residential, the 184,000-apartment landlord created when [AvalonBay and Equity Residential closed last month](https://etf.net/articles/desk-weekly-887d32e3927f), fell **6.6%**. It is a **4.9%** line in XLRE and a 2.9% line in VNQ.

On Tuesday the company published an operating update for a Bank of America conference the next day. It set a full-year 2026 same-store residential revenue outlook of **2%** at the midpoint, matching the July 22 outlooks from AvalonBay and Equity Residential. Physical occupancy was **95.7%** as of September 11, and net effective asking rents were up **3.6%** year over year. On Wednesday, the first session with both the update and the Fed decision, the shares dropped 4.0%.

Chart: Vivmark broke from VNQ on Wednesday

Welltower, the senior-housing landlord that is the largest holding in both funds, fell 2.9%. Realty Income, the triple-net landlord, fell **4.8%** to $56.66, 80 cents above its 52-week low of $55.86, and is down 9.6% over the past month. Digital Realty, the data-center REIT, fell 3.4% on price. Equinix, the largest data-center holding in VNQ, fell 1.6%, and Pacer's data-and-infrastructure real estate fund SRVR fell 2.5%.

It was not a uniform property sale. Prologis, the warehouse landlord and VNQ's second-largest holding, was roughly flat on a total-return basis. Simon Property Group, the mall owner, rose 0.2%. Alexandria Real Estate Equities, the life-science landlord, rose 4.2%. iShares' residential, healthcare and self-storage fund REZ still fell 2.0%, in line with the broad funds, because apartments and healthcare are the sleeve.

## Mortgage REIT funds are a rate book

VanEck's mortgage REIT income fund MORT fell **3.4%** to **$9.03**, a cent above its 52-week low of $9.02, and is down 10.1% over the past month. iShares' mortgage real estate fund REM fell 3.5% on a total-return basis; the share price dropped 5.8%, a gap that reflects the **$0.5059** quarterly distribution that went ex-dividend on Tuesday. Annaly Capital Management, about 18% of REM and 19% of MORT, fell 3.9%.

These are leveraged portfolios of mortgages and mortgage-backed securities, funded in the repo and agency markets. They wear a property label, but they are a rate vehicle. REM's last four quarterly payments come to a **10.12%** trailing yield on Friday's $19.58 price. iShares' U.S. real estate fund IYR, which holds equity REITs, paid $0.738 the same week; its trailing yield on the last four payments is 2.43%.

The week clustered the U.S. equity funds around a 2% decline, and the mortgage funds fell more. U.S. equity-REIT funds remain up in 2026 after the two-week slide. Vanguard's global ex-U.S. real estate fund VNQI does not have that cushion: it is down 5.5% year to date.

Table: Fund, Week, 1-month, YTD

The private market is leasing the good buildings dear and selling the others cheap. The listed book that owns them still carries mostly fixed-rate debt that does not mature for years. A week of lower fund prices does not say which of those buildings you own.

Source: etf.net, https://etf.net/news/the-10-year-is-back-at-5-01-listed-reit-funds-fell-2-2026-09-19. Please cite the page URL.