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Zacks Investment Research
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Why These 4 Retail REITs Merit Attention Even After Fed's Rate Hike
Despite the Federal Reserve's rate hike to 3.75%-4.00%, retail REITs with strong fundamentals remain attractive investments. Four companies—Regency Centers, Phillips Edison, Tanger, and Curbline Properties—benefit from tight retail real estate markets, strong tenant demand, and healthy occupancy rates, positioning them to grow cash flows even in a higher rate environment.
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retail REITs
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Sentiment note
Unique convenience-focused model showing strong leasing economics with 96.5% leased rate, 27.1% new lease spreads, and 18.1% renewal spreads. Low capex intensity at 8.8% of NOI. Zacks Rank #2 with highest projected FFO growth at 16.98% (2026) and 13.23% (2027).