REITs Weekly

Research evidence excerpt

REITs Weekly

bove HR Buy $20.00 Buy $22.00

all else, and (4) what will bridge the gap for REIT valuations. Overall, we walked UE Buy $23.00 Buy $25.00

away from our meetings incrementally more positive on each of the specific REIT

subsectors in our coverage universe as well as the overall REIT sector as a whole.

■ REIT Technical Strategy Update. BTIG's Chief Market Technician, Jonathan Krinsky,

recently published a note (REITs Are Ready) suggesting the sector is poised for an

upside rotation. Specifically, he noted that if the VNQ can break out above the $98-

$100 range it could potentially challenge the 2021 highs of ~$117; the VNQ closed

at $97.61 on 6/11. Notably, Mr. Krinsky called out constructive technical charts for

Extra Space Storage (EXR, Not Rated), NNN REIT (NNN, Neutral), Inventrust (IVT,

Buy, $37 PT), and Regency Centers (REG, Buy, $85 PT).

■ The Return of Silicon Alley. While San Francisco has dominated AI leasing

headlines, Manhattan is emerging as a key beneficiary. According to Cushman &

Wakefield (CWK, Not Rated), AI tenants leased 1M SF of Manhattan office space

in 1Q26, surpassing the group's entire 2025 volume in a single quarter. Demand

has been concentrated in Midtown South, echoing the dot-com era "Silicon Alley"

boom, though concentration risk is more measured today as AI tenants represented

only ~8% of 1Q26 leasing versus ~25% for dot-com companies in 2000. Against

an already robust leasing backdrop, we believe this incremental demand should

accelerate space absorption and further tighten the Midtown South submarket.

■ Price Target Updates. We are making the following adjustments to our price

targets. Additional commentary and valuation analysis can be found on page 4:

■ BTIG Top Pick Regency Centers (REG, Buy): We are increasing our price