U.S. REITs: Model updates: DLR, EQIX, IRM, UNIT, VNO

Research evidence excerpt

U.S. REITs: Model updates: DLR, EQIX, IRM, UNIT, VNO

Barclays | U.S. REITs

Uniti (UNIT) - Equal Weight, $13 price target

Model updates: We raise our PT to $13 (from $11). In our sum of the parts, we use an 8x

multiple for Kinetic (unchanged), 14x for Fiber Infrastructure (unchanged) and a 3x for Uniti

Solutions (unchanged), which results in a weighted average of 9.1x. We anticipate accelerating

growth in both Kinetic and Fiber Infrastructure, driven by continued momentum in growing

fiber subscriber base and hyperscaler sales lease agreements. Management highlighted a

~$1.5b hyperscaler revenue pipeline over the next five years, and expects AI-related deal activity

to ramp, supporting continued growth in Fiber Infrastructure. The company also expects Kinetic

capex to peak in 2026 as it makes progress toward its 3.5m fiber passings target by 2029. We

model Kinetic revenue of $2,147m, Uniti Solutions revenue of $708m, and Fiber Infrastructure

revenue of $986m in 2026. We also model 4.1% growth in fiber passings, and fiber subscribers of

670k in 2026. While legacy DSL, wholesale, and TDM revenues fade, we believe accelerating fiber

growth, improving penetration, and expanding hyperscaler demand position UNIT's

consolidated fiber revenue to be >50% of the total revenue this year.

Vornado (VNO) - Underweight, $29 price target

Model updates: Our $29 price target (from $28) is based on an 11x multiple (unchanged) of our

$2.65 FFOps, as adjusted estimate (from $2.53). Our higher estimates reflect leasing momentum

and anticipated move-ins at Penn 2, partially offset by higher expenses and adjustments for

seasonal items. We model FFOps growth of 2.1% in 2026, accelerating to 12.4% in 2027 driven

by higher occupancy and contributions from recent acquisitions.

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