Sales and Occupancy Gains Support Upward Earnings Revisions; Raise PECO PT +11% to $42; Positive Top Pick REG Into Print: Retail REITs 2Q26 Earnings Preview | North America

Research evidence excerpt

Sales and Occupancy Gains Support Upward Earnings Revisions; Raise PECO PT +11% to $42; Positive Top Pick REG Into Print: Retail REITs 2Q26 Earnings Preview | North America

Idea

July 9, 2026 02:53 PM GMT

Morgan Stanley & Co. LLCMRetail REITs 2Q26 Earnings Preview | North Ronald Kamdem, CFA

America Equity Analyst

Ronald.Kamdem@morganstanley.com +1 212 296-8319

Caroline Long

Research AssociateSales and Occupancy Gains Caroline.Long1@morganstanley.com +1 212 761-0102

Matthew Glickman

Research AssociateSupport Upward Earnings Matthew.Glickman@morganstanley.com +1 212 761-4272

Adam Kramer

Equity AnalystRevisions; Raise PECO PT +11% Adam.Kramer@morganstanley.com +1 212 761-4623

Real Estate Investment Truststo $42; Positive Top Pick REG North America

Into Print Industry View In-Line

What’s Changed

Phillips Edison & Company, Inc (PECO.O) From To

Price Target $38.00 $42.00

We highlight earnings expectations, fundamentals and key

performance indicators across 7 REITs under coverage. Shopping

centers (+22%) and malls (+25%) have outperformed REITs

(+14.9%) and the S&P (+10.2%) YTD.

Key Takeaways

Expect SPG 2Q RE FFO (ex OPI) in-line w/ cons and 26e guide (ex OPI) raised +

$0.025 to $13.20; expect MAC 2Q FFO in-line w/ cons and 28e target FFO of

$1.90

Expect KIM 2Q FFO in-line w/ cons and 26e guide raised $0.01 to $1.835 above

cons; expect REG 2Q FFO in-line w/ cons and guide raised+$0.02 to $4.87 above

cons

Expect PECO 2Q FFO in-line with cons and guide raised +$0.02 to $2.77 above

cons/in-line MSe; we are raising our base case PT +11% to $42

Expect UE 2Q FFO above cons and guide raised $0.01 to $1.51 below cons; expect

CURB 2Q FFO above cons and guide raised +$0.015 to $1.23 above cons/MSe

Super regional malls occ (+20bps YoY) and rents (+14.5% YoY) outperforming;