Knowledge from the Well: June 2026 REITweek REITcap

Research evidence excerpt

Knowledge from the Well: June 2026 REITweek REITcap

on the sector

remains relatively muted given valuation levels, and we believe this will remain the case until a real

inflection is seen in rent growth, and management teams remain cautious around specifying a time line

for that move. We remain positive on the Sunbelt markets and smaller spaces within EGP's portfolio,

although we do expect the increase in larger box leasing to benefit PLD and FR, while we still see

significant value in REXR, though rent stabilization with an eye toward growth is likely needed in SoCal

for investors to come back to that name. Top Pick: EGP

Lodging. The tone across our lodging meetings on demand, the trajectory of OpEx & also the

transaction market was constructive, supported by continually strong industry data, favorable

insurance trends & higher transaction volumes YoY. We came away incrementally positive, but still

look for more sustained momentum before we have full conviction on the durability of fundamentals

into 2027, given a volatile macro backdrop. Select-service operators pointed to healthier weekday

demand, better occupancy, and a setup where incremental demand is flowing through to earnings

more efficiently than in historical periods, due to better capture on high-margin ancillary fee streams,

while group-oriented names continue to benefit from strong booking pace, favorable customer mix,

and solid out-of-room spend. Leisure continues to be a bright spot across different portfolios & chain

scales, with a strong spring break carrying into the summer leisure period. A number of companies

also highlighted lower supply remains an ongoing tailwind as elevated construction costs continue

to constrain new development, particularly for supply that's competitive to REIT-owned assets.