U.S. REITs: 2Q26 Retail REITs Preview

Research evidence excerpt

U.S. REITs: 2Q26 Retail REITs Preview

Equity Research

24 June 2026

U.S. REITs

2Q26 Retail REITs Preview

Comparatively few model changes this time around, though

we do anticipate modest FY26 FFO guidance increases in

conjunction with 2Q earnings. We're currently ~1% ahead of U.S. REITs NEUTRAL

Unchangedconsensus FFO, on average.

Richard HightowerAs we approach the upcoming 2Q26 earnings season, we are making few significant changes to

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our Retail REIT models, though we do anticipate modest FY26 FFO/sh guidance increases more

richard.hightower@barclays.com

or less across the board (see discussion below). On balance, the basic setup for Retail BCI, US

fundamentals remains healthy, and we believe the case can be made that the consumer

Sydnie Rohmeeconomy, which ultimately drives leasing demand, has visibly improved over the last couple of

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months (even if the overall picture is mixed). Net of all model updates, our relative stock

sydnie.rohme@barclays.com

rankings within Retail haven't moved versus prior: We remain Overweight REG and KIM, and are BCI, US

Equal Weight FRT, PECO, SPG, and SKT.

• Model Changes (Figure 1, Figure 51): As stated, the changes this time around are minimal.

That said, we generally anticipate modest (~1%) 2026 FFO/sh guidance increases this

quarter on a combination of faster rent commencements, improving bad debt trends, and

minimal disruptions in overall economic activity. Net of all adjustments, our 2026 FFO

estimates are essentially unchanged from prior (noting that we are ~1% ahead of Bloomberg

consensus, on average), while the changes for 2027 and 2028 are more mixed (averaging out

to approximately zero, on net). Overall, we expect an average of ~5% FFO/sh growth for our