[Video] REIT Roundup: PLD/Segro, PSA's Strategy, and Housing Bill Implications

Research evidence excerpt

[Video] REIT Roundup: PLD/Segro, PSA's Strategy, and Housing Bill Implications

Sector Views

CRE Services – Positive: We maintain a positive outlook on CRE Services firms for 2026, driven by outsourcing momentum, growth in digital

infrastructure within Services, and expectations for another strong year in Capital Markets.

Data Centers – Positive: Data center demand remains strong, supported by AI tailwinds that continue to lift both hyperscaler and enterprise

requirements, while supply remains constrained.

Industrial – Positive: The backdrop appears more constructive than in 2025, supported by clearer tariff policy and a broader mix of demand drivers,

including manufacturing and data center-related supply chain activity.

Malls – Positive: Despite tariff concerns, the leasing market has remained open for malls, buoyed by a resilient higher-income consumer and limited

supply of class A alternatives, supporting occupancy growth.

Manufactured Housing – Positive: Given the tailwinds of an aging population (age 55+ growth of +13% through 2040) and affordability challenges in the

housing market, we expect growth above other resi sectors at a reasonable valuation.

Net Lease – Positive: Interest rates moving lower are a key catalyst for Net Lease and improving WACCs open a wider set of acquisition opportunities.

Cap rates should remain relatively stable, though competitive pressure from private entrants may cause compression.

Shopping Centers - Positive: Retail supply remains tight, and strips' fundamentals should stay resilient as strong lease backlog continues to support NOI

growth.

Apartments – Positive: We prefer Sunbelt to Coastal as supply forecasts are beginning to moderate, and we expect Sunbelt job growth to continue to

exceed Coastal job growth.