SBAC - REIT Earnings Halftime Report

• We're approaching the halfway point of another newsworthy real estate earnings season with over 50 REITs representing 50% of the total market capitalization having reported results.
• Among the 40 REITs that provided full-year FFO guidance, 30 REITs (75%) raised their outlook- well above the historical guidance increase rate of 60% while nearly 90% topped Q1 estimates.
• M&A has been the major theme early in REIT earnings season as Blackstone took its buying spree into another gear with two major acquisitions - American Campus and PS Business.
• Residential and industrial REITs have been the early upside standouts thus far as rents continue to soar by double-digit rates across these sectors amid a substantial and lingering demand/supply imbalance.
• Sunbelt outperformance remains an ongoing theme across most sectors, particularly in office and hotel REITs. While still early, mortgage REIT earnings results haven't been as weak as feared given the historic bond rout in early 2022.

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