U.S. real estate investment trust funds from operations reached an all-time high of $19.1 billion during the second quarter, up 21.3% year over year, according to an analysis by S&P Global Market Intelligence.

Lodging and resorts reported the biggest year-over-year increase in FFO, rising 1,326.2% to $1.37 billion, Market Intelligence data showed. Self-storage REITs rose 45.9% to $1.48 billion. Office was the only sector that experienced a year-over-year decrease in FFO, falling 3.7% to $1.9 billion.

The strong FFO results are in stark contrast with REIT stock performance, which has been trending downward in 2022, mirroring the trajectory of the broader stock market.

"Clearly right now, we've got a disconnect between operating performance and stock market valuations. But I think from the perspective of most REITs, their focus is on that continued operating performance," National Association Of Real Estate Investment Trusts Inc. Executive Vice President of Research and Investor Outreach John Worth said in an interview.

Hotel and lodging REITs are experiencing a strong recovery, as pent-up consumer demand for travel has skyrocketed over the past year. Leisure travel has led the recovery, but business and group travel are also on the rise.

Net operating income also reached an all-time high in the second quarter, Nareit data showed. Across all REITs, NOI rose 3.3% from the prior quarter to $28.5 billion and was up 9.9% year over year. Overall, 92% of REITs reported higher NOI than a year ago.

Nareit reported that occupancy levels across REIT-owned properties reached 93.7% in the second quarter, up from 92.7% in the first quarter.

REITs entered the pandemic with lower leverage, less interest expense, access to lines of credit and cash on their balance sheets, and better-structured debt than during the financial crisis, Worth said. As a result, the sector has been able to weather the turbulent economic environment.

"The COVID-19 period was, in many ways, a stress testing of REITs and the REIT model. And I think where I come out is that REITs have passed that stress test with flying colors," Worth said.

REITs made $11 billion in net acquisitions during the second quarter, down from $16.7 billion during the first quarter. Rising interest rates have been weighing on the commercial real estate sector, making it more expensive to buy property. Worth said that volume was still a surprise.

"It's certainly [been] down for the last couple quarters, but it's still meaningful acquisitions," Worth said.