Shopping Center REIT Quarterly Checkup & FRT Investor Day Recap

Research evidence excerpt

Shopping Center REIT Quarterly Checkup & FRT Investor Day Recap

Equity Research

Price Target Change — May 26, 2026

Retail REITs

Shopping Center REIT Quarterly Checkup &

FRT Investor Day Recap

Updating Estimates & PTs Across Our Coverage; See Inside

for Updated Occupancy, Leasing and Valuation Metrics

Our Call Cooper Clark

We maintain our positive view on Retail REIT fundamentals into upcoming meetings at Equity Analyst | Wells Fargo Securities, LLC

Cooper.Clark@wellsfargo.com | 212-214-1146

June Nareit & continue to have conviction on secular tailwinds for the space. However, we

James Feldmannote less attractive relative valuation following outperformance YTD.

Equity Analyst | Wells Fargo Securities, LLC

James.Feldman@wellsfargo.com | 212-214-5328

Big Picture: We maintain our preference for Retail within our REIT coverage given secular

tailwinds and sustainable & defensive mid single-digit FFO growth. However, we're

incrementally more balanced NT as we believe current valuation more accurately reflects

fundamental strength following YTD outperformance. Price discovery in the private

transaction market & recent M&A provide some ongoing support. OW FRT, IVT, KRG &

REG given our preference for idiosyncratic upside from capital allocation.

Secular Tailwinds: The operating environment remains strong as 1) Tenant demand

for space has seen no negative impacts from macro volatility. New lease & renewal rate

growth ex. options accelerated in 1Q vs. TTM. 2) Supply is at historically low levels, which

KIM mgmt. estimates is 0.2% of total stock. 3) Consumer traffic levels are growing YoY

(per commentary during 1Q earnings & meetings at our conference). & 4) We expect

lower bad debt to be a source of guidance upside across our coverage.