Good 1H....Can It Continue??

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Good 1H....Can It Continue??

Real Estate | REITs

June 21, 2026

Steve Sakwa Good 1H....Can It Continue??

212-446-9462 With just 7 trading days left in Q2 and the first half, we thought it

Steve.Sakwa@evercoreisi.com

would be helpful to highlight key trends that unfolded in 2026

James Kammert

312 705-4233 and identify opportunities moving into the back half of the year.

james.kammert@evercoreisi.com

1. YTD, the RMZ is up 14.6% which would make it the 11th best

Michael Griffin, CFA

212-752-0886 half yearly return looking at data over the past 30 years. In

Michael.Griffin@evercoreisi.com order to crack the top 10, the index would need to gain

Manus Ebbecke, CFA another 300bp over the next week and half and post a 1st

212-812-2910 half return in excess of 17.5% (see Figure 7).

Manus.Ebbecke@evercoreisi.com

2. The bifurcation in subsector returns is wide but not

inconsistent with past years as Lodging now tops the charts

with a 42% gain followed closely by Data Centers at 39%.

Bringing up the rear are all 3 residential sectors (MH, SFR &

Apts) which clock in at -1% to +3% while Towers have also

lagged with a return of -0.5%.

3. While REITs are up nearly 15%, FFO ests are only up 1%

since Jan 1st which means that multiples have expanded by

10% (or 2 turns) since Jan 1st. Add in a half year of dividends

and that accounts for the group’s performance over the first

6 months. Looking forward, it seems more difficult to

underwrite additional multiple expansion which means that

FFO growth and/or upward revisions will need to account for

more of the return along with dividends.

4. What’s interesting moving into 2H26?...Below are several

stock ideas we like moving into the second half of the year.

a. Given the poor performance of the residential complex,