REAL ESTATE : Can’t stop the PEG: Outperformance widens vs. average

Research evidence excerpt

REAL ESTATE : Can’t stop the PEG: Outperformance widens vs. average

EQUITIES

REAL ESTATE

Can’t stop the PEG: Outperformance widens vs. average

We are providing an update to our ‘26 PEG basket performance since construction on December 5th,10 JUNE 2026

Sector Research Report 2025 through May 2026. Our Top 25 basket is outperforming the IYR and our Bottom 25 basket

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by 503bp and 4bp respectively. We expect outperformance to continue considering persistentResearch Analysts & Publishing Entities

strong fundamentals within select REIT subsectors (Data Centers, Industrial, Healthcare).

Nate Crossett

BNP Paribas Securities Corp1 Top 25 basket continues to outperform through May 2026(+)1 646 342 1588

nate.crossett@us.bnpparibas.com Through May, our Top 25 PEG basket is outperforming both the IYR and our bottom 25 basket, by

503bp and 4bp respectively. Iron Mountain (IRM) continues to be the best performer within the top

John Paul Flangos

25 basket, delivering a return of 54.9%. Our belief that attractive PEGs are a preferred method forBNP Paribas Securities Corp1

(+1) 646 342 5660 picking stocks continues to work. The Top 25 basket outperformance vs. the IYR widened ~250 bps

johnpaul.flangos@us.bnpparibas.com to 503bp (vs. 255bp through April). However, outperformance vs. the Bottom 25 basket has narrowed

Monir Koummal considerably as the year has continued, with the Top 25 outperforming the Bottom 25 by merely 4bp

BNP Paribas Securities Corp1 (vs. 389bp through April).

(+1) 646 342 1554

monir.koummal@us.bnpparibas.com

Pair attractive PEGs with solid RE subsectors; industrial, DCs, healthcare, select net lease

Cole Faris Our preference continues to be owning names that are in subsectors with solid or improving