US REITs and Lodging: Finding the Right Pair – 2Q26 Earnings Preview and Pair Trades

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US REITs and Lodging: Finding the Right Pair – 2Q26 Earnings Preview and Pair Trades

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06 Jul 2026 18:54:11 ET │ 80 pages

US REITs and Lodging

Finding the Right Pair – 2Q26 Earnings Preview and Pair Trades

CITI'S TAKE

Nick Joseph AC

REITs enter 2Q earnings season on a positive trajectory, up on an absolute +1-212-816-1909

and relative basis vs. the broad market YTD. While broad market trends (i.e. nicholas.joseph@citi.com

AI implications), the macroeconomic environment, and interest rate

movements remain important considerations, we are generally constructive Office/Healthcare/CRE Services

on REITs driven by our expectation of solid earnings growth, a multi-year

lower supply environment, and improving KPIs. Updates to guidance, Seth Bergey, CPA, CFA

recent operating trends, and management commentary will be key drivers +1-212-816-2066

of REIT performance throughout earnings. seth.bergey@citi.com

Industrial/Retail/Cold Storage

Focus during Earnings — We expect the focus on earnings calls to be on guidance

changes, demand drivers, market rents, and leasing trends. In addition, investors Craig Mailman

will look for updated thoughts around a number of topics, including tenant health, +1-212-816-4471

operating expenses, AI impacts, real estate tax and insurance costs, as well as craig.mailman@citi.com

supply expectations, and the implications for the transaction market and cap rates.

Likewise, changes in development / redevelopment opportunities, dividend policies, Lodging/Net Lease

and access to the capital markets will be of interest. We estimate 2Q core earnings

Smedes Rosegrowth of +5.6% (weighted average).

+1-212-816-6243

Pair Trades — Herein we outline the rationale for three relative value pair trades: smedes.rose@citi.com