The BREW: REITs250 - Celebrating 250 Days of Outperformance

Research evidence excerpt

The BREW: REITs250 - Celebrating 250 Days of Outperformance

July 5, 2026 | 18:57 ET~

US Real Estate

The BREW: REITs250 - Celebrating 250 Days of US Real Estate

Outperformance John P. Kim Analyst

JohnP.Kim@bmo.com (212) 885-4115

Juan C. Sanabria AnalystBottom Line:

juan.sanabria@bmo.com (312) 845-4074

As we commemorate America's 250th anniversary, it's time to reflect on U.S. REITs'

Ari Klein Analyst250 days of outperformance! Halfway through 2026, the RMZ Index has provided a

ari.klein@bmo.com (212) 885-4103

+17.6% total return, outperforming the S&P 500's +9.7% and on its way to breaking its

Eric Borden Analystfour-year relative losing streak. In our 2026 outlook (REIT Redemption Tour), we called

eric.borden@bmo.com (347) 213-9706

for +17% total return, due to discounted valuations, improved earnings outlook, and

Regan Sweeney, CPA Senior Associate'26 unique events (e.g. World Cup). However, we also expected lower interest rates,

regan.sweeney@bmo.com (347) 831-2406

which has not occurred - making this year's performance somewhat surprising. Sector

Robin Haneland Senior Associateperformance was led by Lodging (+43.1% YTD) with Diversified (+41.7%), Data Centers

robin.haneland@bmo.com (646) 901-2282

(+28.7%), and Malls (+24.1%) following. Also notable was the tale of two quarters, with

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a significantly better 2Q: Office (-14.2%/+35.0%), Lodging (+4.4%/+38.4%), and SFRs

(-10.5%/+21.7%) had the biggest splits between 1Q/2Q performance. We discuss sector What's Inside

performance and current views heading into 2H26 inside.

Global REIT Performance Chart

Key Points YTD 1 Week -10.0% -5.0% +0.0% +5.0% +10.0% +15.0% +20.0%

In a nutshell: Apt/Resi performance was marred by political uncertainty (SFRs), but 2Q Global Real Estate 0.4% 9.4%