U.S. Apartment REITs: Takeaways from UBS-ARC Expert Call

Research evidence excerpt

U.S. Apartment REITs: Takeaways from UBS-ARC Expert Call

Global Research

9 July 2026ab

U.S. Apartment REITs Equities

AmericasTakeaways from UBS-ARC Expert Call

Real Estate

Michael Goldsmith

Our take: Sunbelt fundamentals remain pressured, though we view some of Analyst

this softness as portfolio-specific michael.goldsmith@ubs.com

We recently hosted a call with experts from a large multifamily operator. The experts +1-212-713 2951

were cautious on the near-term outlook given elevated concessions and lingering supply Ami Probandt

pressure. 2026 revenue trends in their portfolio are tracking below expectations Analyst

following an early end to the peak leasing season. For the REITs, we think operating ami.probandt@ubs.com

conditions remain challenging in the Sunbelt, though some of the soft results in the +1-212-713 2078

experts' portfolio may be due to unique Sunbelt/Midwest suburban exposure. Looking Justin Haasbeek

forward, the experts remain constructive on the medium-term outlook as new supply Associate Analyst

slows. justin.haasbeek@ubs.com

+1-212-713 2014

Concession usage remains elevated as supply pressure remains Connor Mitchell

Associate Analyst

Blended rent growth has remained roughly flat. Across the experts' portfolio, connor.mitchell@ubs.com

blended spreads in 2026 have been flattish. This reflects renewals increasing by +1-212-649 8246

1%-1.5% offset by negative new lease trade-outs and elevated concession Anna O'Neil

activity. The experts noted renters remain highly price-sensitive and continue to Associate Analyst

exhibit deal-seeking behavior, which they attributed in part to weak consumer anna.oneil@ubs.com

sentiment. +1-212-713 4386

The leasing season peaked earlier than expected. Rent growth peaked in