U.S. REITs: Key takeaways from our 50+ meetings at Nareit across REIT sectors

Research evidence excerpt

U.S. REITs: Key takeaways from our 50+ meetings at Nareit across REIT sectors

michael.j.funk@bofa.com

positive theme across sectors. Visibility into 2H26 and 2027 remains strong, with Dany Asad

Research Analyst

supply expected to stay constrained for a range of reasons. More importantly, BofAS

development economics still do not work for many private developers and merchant +1 646 855 5238

dany.asad@bofa.com

builders, which should help extend this backdrop well beyond the next few quarters.

Farrell Granath

In some sectors, including parts of Residential, several management teams Research Analyst

suggested the benefit of today’s limited starts could last into 2028 and 2029. BofAS farrell.granath@bofa.com

• Opportunity #1: The competitive position of public REITs appears to be improving. Daniel Byun

Scale, relationships, speed and certainty of execution matter more in today’s ResearchBofAS Analyst

environment, particularly as smaller developers remain constrained and in general daniel.byun@bofa.com

private capital is focusing on datacenter buildout. We heard repeatedly that large Andrew Berger

capital partners increasingly want to work with scaled platforms, while operators ResearchBofAS Analyst

continue to favor counterparties that can move quickly and close with confidence. In andrew.berger2@bofa.com

our view, that creates a growing advantage for the better-positioned public REITs. Andrew Reale

• Opportunity #2: The other key opportunity is internal. Public REITs remain BofAS

andrew.reale@bofa.com

disciplined on capital allocation, with a continued focus on capital recycling,

Julieta Michelin

selective development and productivity gains through better data, tighter execution, Research Analyst

and technology.