REITs Weekly

Research evidence excerpt

REITs Weekly

May 29, 2026 REITs WeeklyREAL

REITs Up 40bps, Underperform S&P 500 and R2K

Michael Gorman

WHAT YOU SHOULD KNOW: For the week (5/21-5/28), the NAREIT Equity REITs Index (212) 738-6138 mgorman@btig.com

was up 40bps, underperforming the S&P 500 and R2K. The yield on the 10-yearESTATE Thomas Catherwood decreased (7bps) to 4.48%. The average implied cap rate for our coverage is 7.23%, (212) 738-6140 tcatherwood@btig.com

and the spread to the 10-year is 275 bps. As shown in Exhibit 1, the best-performing

John Nickodemus, CFA sector for the week was Hotels, with prices up 3.7%. The worst-performing sector

(212) 738-6050 jnickodemus@btig.com was Manufactured Housing, down (1.1%). Please see page 3 Table of Contents for

additional updates, commentary and data. Michael Tompkins

(212) 527-3566 mtompkins@btig.comINDUSTRY

Tidbits Heading into the Weekend Zachary Light

■ REITWeek Preview. Ahead of REITWeek, we are again highlighting Parts 1 & 2 of (332) 400-5016 zlight@btig.com

our three-part "Road to Nareit" series:

■ Part 1: The REIT sector has fractured into three distinct tiers, with a smallREPORT elite group commanding an all-time high valuation premium. The market

cap-weighted FFO multiple now sits at a 40% premium to the equal-

weighted average, the widest gap in 25 years. Cheapness alone no longer

drives re-ratings; the market demands a specific, durable growth story.

Heading into REITWeek 2026, we're focused on which management teams

understand this new reality and where value is genuinely being created.

■ Part 2: As generalist investors represent the largest incremental capital

source for REITs, the traditional valuation metrics do not apply favorably

to REITs, making the sector look expensive relative to all comparables. On