The REIT Reality: 2Q26 #2: PECO (OW), AVB (NR), EQR (NR), FR (OW), REXR (N), BDN (OW), EPRT (OW), DLR (N), LADR (OW) Credit Updates

Research evidence excerpt

The REIT Reality: 2Q26 #2: PECO (OW), AVB (NR), EQR (NR), FR (OW), REXR (N), BDN (OW), EPRT (OW), DLR (N), LADR (OW) Credit Updates

’s negative outlook on KRC / PDM at

BBB-. We’d also flag that office sector leverage is now at ~8.0x (the highest across all

property sectors). Finally, while the AI job-eating narrative is currently more than offset by

AI-driven incremental demand, the durability of that offset remains an open question. And

in a broader cross-sector context, CMBS still screens cheap versus REITs across the board,

even after adjusting for ratings-quality differences.

Notable Headlines From Last Week

• Newmark (NR): Secured a long-term property and project management assignment

with institutional investors and developer 601W companies of more than 21mm square

feet of office assets across Chicago, New York, New Jersey, and Los Angeles.

• Healthpeak Properties (N) and Brookfield Joint Venture: Healthpeak and Brookfield

formed a long-term joint venture for 86 U.S. outpatient medical office buildings (5.6M

sq. ft.) valued at about $2.1B, which is 95% leased with a six-year weighted average

remaining lease term. Brookfield bought a non-controlling 49% stake for roughly

$1.025B while Healthpeak retained control and management, and Healthpeak holds a call

option starting after year seven to repurchase Brookfield’s interest at a price targeting

Brookfield a 6.5% net annual return.

• EPR (OW) New Credit Agreement: EPR Properties amended and restated its credit

agreement to establish a $1.0B senior unsecured revolving credit facility and add a new

$600M senior unsecured delayed-draw term loan, replacing its prior $1.0B revolver. The

package provides $1.6B of initial liquidity (expandable to $2.6B via an accordion),