Advan Buysider on REITS to UBS' institutional clients
The topics / conclusions from the work are:
- For industrial, Q1 activity has built on Q4’s; STAG and Terreno’s relative “share” have improved the most QoQ, whereas First Industrial has dropped the most. We expect that these directional moves to align with the trends in occupancy.
- For Prologis, the pace of activity has risen to 4% above LY’s. California has picked up relative to Texas and Illinois. The better trend in California is also evident in Rexford Industrial’s observed activity.
- In storage, Public Storage and Extra Space should report in-line revenue. CubeSmart should be a miss on revenue. Geographically for PSA and NSA, their observed activity nicely complement one another.
- In cold storage, Lineage and Americold observed activity has largely been steady, with LINE slightly outperforming.
- Malls overall experienced healthy traffic increases for the quarter. March’s retail sales (and traffic) were robust, especially at the high-end. SPG also saw a nice increase in activity during the quarter, despite the adverse weather.
- In office, the activity rate at Alexandria Real Estate is still not good, but not worse. For BXP, the observed trends further strengthened.
- Our larger worry is grocery-anchored real estate given the disruption happening to conventional grocery.
