REITs Weekly

Research evidence excerpt

REITs Weekly

June 22, 2026 REITs WeeklyREAL

REITs Down 1.9%, Underperform the S&P 500 and R2K

Michael Gorman

WHAT YOU SHOULD KNOW: For the week (6/11-6/18), the NAREIT Equity REITs Index (212) 738-6138 mgorman@btig.com

was down (1.9%), underperforming the S&P 500 and R2K. The yield on the 10-yearESTATE Thomas Catherwood stayed flat over the week, at 4.45%. The average implied cap rate for our coverage (212) 738-6140 tcatherwood@btig.com

is 7.22%, and the spread to the 10-year is 277bps. As shown in Exhibit 1, the best-

John Nickodemus, CFA performing sector for the week was Data Centers, with prices up 3.7%. The worst-

(212) 738-6050 jnickodemus@btig.com performing sector was Infrastructure, down (8.2%). Please see page 3 Table of Contents

for additional updates, commentary and data. Michael Tompkins

(212) 527-3566 mtompkins@btig.comINDUSTRY

Last Week, This Morning Zachary Light

■ Fed Holds Rates. Earlier in the week, the Fed held its benchmark rate (3.50%-3.75%) (332) 400-5016 zlight@btig.com

with signals of a potential rate hike in the future as inflation expectations remain

elevated. Indeed, nine of nineteen Fed officials are accounting for at least oneREPORT hike by the end of 2026, a drastic step-up from zero in March. With the market-

implied probability of a hike, REITs certainly felt the pressure (Exhibit 1) as the

selloff impacted last week's constructive gains (Link). The read-through for REITs in

a higher for longer rate environment adds just another headwind for the sector to

work through putting more stress on cap rate spreads, net asset values, and overall

financing costs. In our view, should the inflation outlook remain stable and rates

hold steady, REITs could face headwinds that may temper their YTD benchmark