Retail REITs: Retail REIT Weekly Rundown

Research evidence excerpt

Retail REITs: Retail REIT Weekly Rundown

’26 and 6.5% in ’27. Our Key terms:

estimates are above street consensus and imply growth that is among the highest of

shopping center REITs over the coming years. Based on conversations with investors, Ests: estimates

expectations are for 4% SS NOI growth and 6% FFO growth over the next few years. FFO: funds from operations

ICSC: International Council of Shopping

SPG 1Q: Ests. higher on better results, reiterate Buy Centers

SPG was the final retail REIT to report 1Q earnings on Monday. 1Q core real estate HH: household

results beat our expectations behind strong leasing and unabated demand for space. 1Q NOI: net operating income

real estate FFO/sh was $3.17 vs BofAe $3.10. SPG raised '26 RE FFO/sh guidance 10c Redevs: redevelopments

on the low end to $13.10-13.25. Portfolio NOI growth was strong at 5.5% ex-TRG (6.7% SS NOI: Same store net operating

including TRG). SPG has completed 75% of 2026 expirations, which it said is ahead of income

this point one year prior. A broader array of tenants are discussing leases as far out as TRG: Taubman Realty Group

2029, which historically was a phenomenon more exclusive to luxury. We increased our

2026 RE FFO/sh estimate to $13.25 from $13.22, which is the high end of guidance and FRT: Federal Realty Trust

4c above Street. We reiterated our Buy rating, see our earnings recap for more. KRG: Kite Realty Group

REG: Regency Centers Corp

April retail sales data: Card spend up 4.8% Y/Y SPG: Simon Property Group

BofA’s consumer spend data team published its latest report on April retail sales. Total

card spending per HH, measured by BAC aggregated credit and debit cards, was up 4.8%

y/y in April. Gas spending jumped again due to higher prices, and online retail (card not

present) remained solid.