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REITs Set for a 2026 Rebound? 7 Top Picks as Rate Cuts Approach Written by Bridget Bennett on February 19, 2026 
Article Highlights - REITs could be setting up for a 2026 comeback as falling rates flip the macro backdrop that crushed the sector in 2025, with Brad Thomas saying the “REIT rally [is] finally underway in 2026.”
- Five “sleep well at night” picks—Realty Income, Equinix, Public Storage, Equity LifeStyle, and EastGroup—combine durable moats, solid balance sheets, and sector-specific tailwinds.
- Two higher-risk ideas, Americold and Healthpeak, offer deep-value upside tied to execution and catalysts like cost resets, activism, and a planned senior-housing spin-off.
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 Real Estate Investment Trusts—or REITs—were left for dead in 2025. After two straight years of underperformance, the group became one of the market’s most widely avoided corners—largely because rising interest rates are kryptonite for a sector built on leverage and access to capital. In a recent conversation with Brad Thomas of Wide Moat Research, the tone was noticeably different. The setup for 2026 is starting to look like the mirror image of what punished REIT investors in 2024 and 2025. As Thomas put it, “So now that we’re seeing this rates decline… we’re seeing the REIT rally finally underway in 2026.” That’s already showing up in the scoreboard. Certain property sectors are leading early in the year—farmland REITs are up roughly 24% year to date, data centers around 22%, net lease about 15%, and self-storage about 14%. The point isn’t that everything is back. It’s that the rotation is starting, and investors who wait for “all clear” often wind up paying higher multiples for the same cash flows. Thomas shared seven REITs he likes most for 2026. The first five fall into the “sleep well at night” bucket—steady businesses with durable moats. The final two are higher-risk ideas with bigger rebound potential if their catalysts play out. Realty Income: The Monthly Dividend Machine With Scale to Spare Realty Income (NYSE: O) is one of the most recognizable names in REIT land—and for Thomas, it’s a foundational holding in net lease. The company owns more than 15,500 freestanding properties across all 50 states and Europe, and it collects rent from roughly 1,600 customers across 92 industries. Tenants include familiar brands like 7-Eleven, Dollar General (NYSE: DG), Walgreens and FedEx (NYSE: FDX), which helps reinforce the stability investors look for in a core REIT position. Scale matters here, but so does balance sheet strength. Realty Income carries an A credit rating and has increased its dividend for 27 consecutive years, making it a Dividend Aristocrat. That streak includes the Global Financial Crisis and COVID-19. Even after a strong start to 2026, Thomas still sees value. Shares trade near 15.3x price-to-AFFO (adjusted funds from operations), below the company’s longer-term average around 17x, with a dividend yield around 4.9%. Equinix: The Data Center REIT Where the Network Is the Moat When the conversation shifted to growth, Thomas went straight to data centers—and specifically Equinix (NASDAQ: EQIX), one of the sector’s dominant global landlords. Equinix operates 273 data centers across 36 countries and 77 markets. But the key point Thomas emphasized is that the advantage isn’t just real estate. It’s the ecosystem. As he explained, “The real moat is not the building… it’s the network inside of that building.” That “network effect” creates stickiness—moving equipment is expensive, and connectivity relationships aren’t easily replicated. It also supports pricing power in major metro markets where demand remains intense. Equinix recently delivered a 10% dividend increase and is guiding to strong AI-fueled growth. The balance sheet is solid (BBB+), leverage remains manageable, and the shares trade around 24x AFFO—slightly below the company’s typical range. The yield is lower at roughly 2.6%, but the growth runway is longer. On the floor of the Pacific Ocean, in waters under American control, sit billions of ancient rocks packed with the exact metals powering EVs, AI data centers, and advanced defense systems — metals that China currently dominates the global supply of. One small American company has spent years developing the technology to harvest them from the ocean floor, and when President Trump signed an executive order this year fast-tracking deep-sea mineral extraction, the opportunity became significantly harder to ignore. Bill Spencer's free weekly research identifies three tickers at the center of developing stories like this one, delivered at no cost. See Bill Spencer's Three Free Ticker Picks This Week Public Storage: The Sticky Self-Storage Giant With Pricing Power Self-storage is one of those property types that tends to surprise investors—until they’ve used it. Thomas described it as “sticky,” and it’s easy to see why. Public Storage (NYSE: PSA) is the category leader with approximately 3,500 U.S. facilities and a 35% stake in European operator Shurgard. The industry remains fragmented, giving Public Storage ample room to consolidate over time. The company’s edge isn’t only scale. Technology has become a competitive weapon in self-storage, and Public Storage’s digital operating platform helps optimize pricing and operations at the local level. Financially, it’s built to endure: A-rated credit, strong liquidity, and substantial retained cash flow. Shares trade near 19x AFFO versus the historical average, 22x. The yield sits around 4%, with expectations that declining rates could improve the broader return profile. Equity LifeStyle Properties: A “Silver Tsunami” Play in Manufactured Housing and RV Resorts Equity LifeStyle Properties (NYSE: ELS) isn’t the first real estate name many investors think of—and that’s part of what makes it interesting. The company owns and operates 455 properties across 35 states and Canada, focused on manufactured housing communities, RV resorts, campgrounds and marinas. Many are in retirement and vacation destinations, and a large portion of its manufactured housing portfolio skews age-qualified. Thomas framed ELS as a beneficiary of the “silver tsunami”—the demographic wave created as baby boomers age into retirement. With demand rising and supply constrained in key Sunbelt markets, ELS has been able to lean into pricing power and occupancy durability. The company recently raised its dividend by 5.3% and has increased payouts for 22 straight years. The dividend yield is around 3.2%, and the setup implies mid-teen total return potential if growth and valuation cooperate. EastGroup Properties: Sunbelt Flex Warehouses Built for Growth Industrial real estate has been a market favorite for years, but EastGroup Properties (NYSE: EGP) plays a slightly different game than the mega warehouse landlords. EastGroup targets “flex” distribution properties—typically 20,000 to 100,000 square feet—in fast-growing Sunbelt markets such as Texas, Florida, Arizona and North Carolina. That niche serves expanding regional businesses that may need to scale space over time. Operational metrics have been strong: occupancy around 96.5%, solid same-store NOI growth, and funds from operations up 8.8% in the latest quarter. Leverage is low, with debt to total market cap around 14.7%. Shares trade near 27x AFFO versus a historical norm around 30x. With analysts projecting growth accelerating into 2027 and 2028, EastGroup offers a blend of quality and upside that fits squarely in a “SWAN” framework. Americold Realty Trust: A Deep-Value Cold Storage Turnaround With a Big Yield After covering the high-quality core names, Thomas pivoted to two beaten-down ideas where the payoff depends more on execution and catalysts. Americold Realty Trust (NYSE: COLD) is a cold storage REIT operating temperature-controlled warehouses across North America, Europe, Asia-Pacific and South America. The company has about 230 facilities and roughly 1.5 billion refrigerated cubic feet of storage capacity. Its customer list includes household names like Walmart (NASDAQ: WMT), Conagra (NYSE: CAG), Kraft Heinz (NASDAQ: KHC), General Mills (NYSE: GIS) and Smithfield (NASDAQ: SFD). In other words: demand isn’t the question. The stock is down sharply because investors have been skeptical about the business’s cyclicality and the service component layered on top of the real estate. Now, the story is shifting. A new CEO is in place, an activist investor has pushed for a review of strategic alternatives, and management is looking at asset sales and cost reductions. Thomas pointed to potential SG&A and indirect cost savings in 2026. The valuation reflects the fear: shares trade around 8.9x AFFO versus a historical multiple above 25x, and the dividend yield is roughly 6.65% with a payout ratio near 65%. It’s not risk-free—but if execution improves, the rebound potential is meaningful. Healthpeak Properties: A Healthcare REIT Catalyst With a Spin-Off on Deck Healthpeak Properties (NYSE: DOC) is the other higher-risk idea Thomas highlighted, and the catalyst is more corporate-structure than macro. Healthpeak owns a mix of outpatient medical office buildings, life science properties and senior housing. The company recently announced plans to spin off its senior housing assets into a new REIT (Janus Living), with Healthpeak retaining a majority ownership stake and the remaining shares expected to trade publicly. The logic is straightforward: pure-play senior housing REITs have commanded premium multiples, while Healthpeak’s blended portfolio has not. A spinoff could help the market value each segment more appropriately. The complication is life science. Industry overbuilding coming out of COVID and reduced venture capital funding have pressured occupancy. Healthpeak did see life science occupancy decline in the most recent quarter, but management expects leasing momentum to improve later in 2026, with a meaningful pipeline of space being marketed. Shares trade around 8.9x AFFO and yield roughly 7.2%, signaling that plenty of risk is already priced in. If the spin-off unlocks value and life science stabilizes, the upside case becomes easier to underwrite. The 2026 REIT Playbook From Brad Thomas Thomas’ list isn't built around chasing what’s already up the most. It's built around a simple premise: when the rate environment changes, REIT leadership changes with it—and investors can either position early, or compete later at higher valuations. The five core names offer stability, balance sheet strength and durable moats. The final two are discounted for a reason, but come with identifiable catalysts that could reshape their return profiles if management delivers. If the rate-cut cycle continues to unfold, REITs may not stay a “forgotten” sector for long. Read this article online › Read More Related Video: 
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