U.S. Shopping Center REITs: Raising the Bar(code)

Research evidence excerpt

U.S. Shopping Center REITs: Raising the Bar(code)

Global Research

9 July 2026ab

U.S. Shopping Center REITs Equities

AmericasRaising the Bar(code)

Real Estate

Michael Goldsmith

Our take: Retail REIT fundamentals remain strong heading into 2Q'26, though Analyst

that is already appreciated by the market michael.goldsmith@ubs.com

We expect Retail REITs to report solid 2Q'26 results while maintaining a constructive +1-212-713 2951

outlook for the remainder of 2026 and into 2027. Our view is supported by discussions Ami Probandt

at ICSC, FRT's Investor Day, and meetings with management teams at NAREIT. That said, Analyst

the market appears to share this optimism, as evidenced by Mall REITs' outperformance ami.probandt@ubs.com

and Shopping Center REITs performing broadly in line with the broader REIT market in +1-212-713 2078

2Q'26. Notably, in 1H'26, Shopping Center REITs generated total returns of 22%, while Connor Mitchell

Malls returned 25%, compared to the REIT Index of 18%. The Shopping Center group's Associate Analyst

relative valuation premium to the broader REIT industry peaked at 12% earlier this year connor.mitchell@ubs.com

but has since moderated to 8% (vs. a 5-year average of -1%). Still, the group's elevated +1-212-649 8246

valuation creates a higher bar heading into 2Q'26 earnings season and through the Justin Haasbeek

balance of 2026. Associate Analyst

justin.haasbeek@ubs.com

+1-212-713 2014

There are several key questions that will determine whether the group can continue to

outperform from here. Anna O'Neil

Associate Analyst

First, can Retail REITs sustain, or even accelerate, the operating momentum that anna.oneil@ubs.com

has driven the group's strength? Occupancy is approaching peak levels, lease +1-212-713 4386