Global Real Estate 2026 BofA Global Real Estate Conference What did we learn

Global Real Estate 2026 BofA Global Real Estate Conference: What did we learn? Industry Overview

Real estate momentum builds despite macro uncertainty 18 September 2026

The 20th Annual BofA Global Real Estate Conference came to a close this week. We met Equity with 130+ global real estate companies from 15 countries. Attendance was in line with Global last year’s record levels. Our 2027 Save the Date will be out soon. REITs

Secular tailwinds are outweighing higher rates, for now Jeffrey Spector Research Analyst Strong demand and declining new supply continue to outweigh higher financing costs BofAS across much of real estate. This was evident across meetings and reinforced by our Blackstone Real Estate Strategy panel, which characterized real estate as emerging from Marc Mozzi >> Research Analyst a prolonged downturn as supply declines, demand improves and capital returns. Higher- BofASE (France) for-longer rates remain a risk to balance sheets and external growth, but multi-year Michael J. Funk supply tailwinds support occupancy, pricing power and earnings visibility. The REIT Research Analyst BofAS compounding FCF story remains intact, highlighted in our Compounding Score analysis. Samir Khanal Research Analyst Lower supply has become a multi-year growth tailwind BofAS Apartment operators pointed to stronger 2027 earn-in as deliveries decline, storage sees Jana Galan Research Analyst moderating ‘26-28 supply as a key recovery catalyst, and office landlords reported BofAS stronger leasing with little new construction. Our data center panel emphasized that Farrell Granath power availability, rather than capital, is increasingly constraining development. In rapid- Research Analyst BofAS fire questions, 72% of mgmt teams expect 2027 sector SS NOI growth to exceed 2026. REITs Team BofAS Refis manageable, but higher-for-longer is a growth risk See Team Page for List of Analysts Our forecasts have not been assuming lower rates, and YTD refinancings have generally come in better than our expectations. Balance sheets remain positioned to extend maturities and fund investment, but our Navigating What’s Next panel stressed that Exhibit 1: Company rapid fire responses long-term yields ultimately drive cap rates and valuations. 47% of management teams 72% of REIT management teams expect 2027 expect refinancing costs to have the largest impact on real estate from higher-for- sector SS NOI growth will be higher vs 2026 longer rates, ahead of lower supply at 42% and fewer transactions at 11%. Biggest impact to sector Refi costs 47% if rates stay higher for Fewer deals 11% Capital is broadening as investment pipelines build longer? Less supply 42% Capital favors high quality assets and proven operators, with investment pipelines Third party capital to Yes 72% expanding most visibly across senior housing, retail and net lease. REITs are combining become more important No 28% balance sheet capacity with JVs, private capital, dispositions and retained cash flow. 72% for REITs? of management teams expect third party capital to become a more important growth Higher 72% 2027 SS NOI growth in Same 22% driver over the next three years. See our Third Party Capital note for more. your sector will be… Lower 6% Financing constraints could shift the advantage to REITs Source: BofA Global Research BofA GLOBAL RESEARCH Higher rates could further extend the supply tailwind by making new development increasingly difficult to underwrite. Higher rates may also improve the competitive position of well-capitalized public REITs on external growth, as elevated financing costs See inside for takeaways from make it more difficult for leveraged private buyers to acquire assets. Together, these company roundtable meetings. dynamics could increase barriers to entry and create more favorable acquisition opps. for public REITs with available capital and/or help grow 3rd party capital platforms.

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