Investors cashed out of real estate investment trusts earlier this year, but with their fundamentals showing strength and the effects of the Federal Reserve’s latest half-point cut, flows out of REITs are slowing down, The Wall Street Journal reports.

Between Feb. 7 and Aug. 15, REITs fell 25.3%, according to SNL Financial, but because they have rallied since that low point, REITs are now down only 3.78% for the year.

Last week, the four-week moving average for flows out of REITs was $267 million, down from $349 million in the previous week.

David Harris, a REIT analyst at Lehman Brothers, calls the category the “comeback kids.”

“It’s still a good time to be a landlord,” said Michael Torres, chief executive of Adelante Capital Management, a real estate investment firm.

One specific type of REIT, healthcare REITs, which invest in assisted living facilities and nursing homes, fared particularly well in the third quarter. Their 11% rise in the quarter was partially fueled by oncoming retirement rush of Baby Boomers.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.