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Technology-led demand gives the REIT and Equity Trust - Other industry a strong growth path. Data centers, communication infrastructure and quality assets across office, industrial, health care, life sciences and storage are gaining importance as tenants seek reliable, efficient and service-rich space. Better systems and stronger properties should support resilient demand. Amid this, Prologis, Inc. (PLD - Free Report) , Cousins Properties Incorporated (CUZ - Free Report) and Sunstone Hotel Investors, Inc. (SHO - Free Report) are well-poised to benefit.
Still, the industry faces pressure from higher construction costs, labor constraints, power limits, supply-chain delays and cautious lenders. Tenant demand can shift, so future gains will depend on disciplined funding, cost control and execution.
About the Industry The Zacks REIT and Equity Trust - Other sector comprises a diverse collection of REIT stocks representing various asset categories, including industrial, office, lodging, healthcare, self-storage, data centers, infrastructure and more. Equity REITs lease out space within these properties to tenants, generating income through rental payments. Economic growth assumes a central role within the real estate sector as economic expansion directly correlates with higher demand for real estate, increased occupancy rates and greater bargaining power for landlords to command higher rental rates. The performance of Equity REITs hinges on the specific dynamics of their underlying assets and the geographic location of their properties. As such, real estate is becoming more closely tied to how companies operate, how technology grows and how people use specialized spaces.
What's Shaping the Future of the REIT and Equity Trust - Other Industry? Technology-Led Demand Is Becoming a Major Growth Driver: A major positive is the growing need for real estate that supports technology and connectivity. Data centers and communication infrastructure are becoming more important as businesses rely more on cloud platforms, artificial intelligence, mobile traffic and secure digital operations. These assets are not optional for many tenants. They sit behind everyday business activity, from storing information to moving it quickly and safely. This creates a strong role for landlords that can offer reliable power, scale, technical know-how and locations that help tenants expand. As technology keeps moving deeper into business life, this part of real estate should remain one of the clearest growth engines.
Quality Space Is Gaining Share Across Several Property Types: Across office, industrial, health care, life sciences and storage-related assets, the stronger properties are standing out. Tenants are being more selective, but they are still willing to choose buildings that help them operate better. In offices, that means modern, well-located and service-rich workplaces that support in-person work and employee experience. In industrial, it means efficient facilities that help companies manage supply chains and automation. In health care and life sciences, demand is supported by long-term needs tied to care delivery, research and specialized operations. Even in storage, operators are using pricing tools, customer data and disciplined expansion to protect value. The common theme is that better assets, better systems and better service are becoming more important than simply owning more space.
Costs and Execution Risks Remain a Real Pressure Point: The outlook is not without strain. Many REITs are dealing with higher construction costs, labor pressure, power constraints, supply-chain delays and more careful lenders. Some tenants are still cautious, and in a few property types, demand can shift quickly depending on business confidence or customer activity. Development also requires more discipline because new projects need the right tenant interest, funding and timing to make sense. This means the industry’s future may favor owners that can control expenses, raise capital wisely and avoid chasing growth for its own sake. The opportunity is there, but it will reward careful execution rather than broad optimism.
Zacks Industry Rank Indicates Bright Prospects The Zacks REIT and Equity Trust - Other industry is housed within the broader Finance sector. It carries a Zacks Industry Rank #81, which places it in the top 33% of around 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates healthy near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of the northward revision of funds from operations (FFO) per share outlook for the constituent companies in aggregate. Looking at the aggregate FFO per share estimate revisions, it appears that analysts are gaining confidence in this group’s growth potential of late. Since February-end, the industry’s FFO per share estimates for 2026 have moved north.
Before we present a few stocks that you might want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and valuation picture.
Industry Lags Stock Market Performance The REIT and Equity Trust - Other Industry has underperformed the S&P 500 composite and the broader Zacks Finance sector in a year.
The industry has risen 8% during this period compared with the S&P 500’s growth of 29% and the broader Finance sector’s 9% increase.
One-Year Price Performance
Industry's Current Valuation On the basis of the forward 12-month price-to-FFO ratio, which is a commonly used multiple for valuing REIT - Others, we see that the industry is currently trading at 16.31 compared with the S&P 500’s forward 12-month price-to-earnings (P/E) of 22.09. However, the industry is trading above the Finance sector’s forward 12-month P/E of 15.61. This is shown in the chart below.
Forward 12 Month Price-to-FFO (P/FFO) Ratio
Over the last five years, the industry has traded as high as 22.27X and as low as 12.86X, with a median of 15.81X.
3 REIT and Equity Trust - Other Stocks to Buy Sunstone Hotel Investors: This is a lodging REIT focused on owning, operating and improving a high-quality portfolio of 14 hotels with around 7,000 rooms. Its properties are largely affiliated with nationally recognized brands and positioned in attractive resort, urban and convention markets, giving the company a balanced platform for long-term value creation.
Sunstone’s investment case is supported by strong portfolio momentum, disciplined cost control and active capital allocation. The company reported a solid first quarter, raised its 2026 outlook, and continues to benefit from growth assets such as Andaz Miami Beach, recovering resort demand in Maui, and opportunistic share repurchases that support earnings and shareholder value.
SHO currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for the company’s 2026 revenues calls for a year-over-year increase of 4.49%. The stock has rallied 8.2% in the past three months. The consensus mark for 2026 FFO per share has been revised upward over the past month to 91 cents, suggesting a 5.81% increase year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: SHO
Prologis: This is a leading global industrial REIT focused on high-quality warehouses and supply chain infrastructure in key consumption markets. Its platform supports major customers across e-commerce, retail, transportation and manufacturing, with a portfolio designed around resilient demand and long-term customer relationships.
The company’s pitch is its scale, disciplined execution and expanding growth avenues. Prologis delivered strong leasing momentum in first-quarter 2026, maintained high occupancy and is investing in attractive areas such as data centers and energy. It recorded 64 million square feet of lease signings and 75.8% retention. It is also scaling data centers, with $1.3 billion of build-to-suit starts, while about $6.7 billion in liquidity supports disciplined expansion and capital flexibility. Its strong balance sheet and global customer base position it well for steady cash flow growth.
Prologis currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for PLD’s 2026 revenues calls for 4.92% increase year over year. The Zacks Consensus Estimate for 2026 FFO per share suggests a 6.20% rise. The stock has appreciated 14.8% in the past six months.
Price and Consensus: PLD
Cousins Properties: This is an Atlanta-based, fully integrated REIT focused on Class A office buildings in high-growth Sun Belt markets. Founded in 1958, the company builds value through development, acquisitions, leasing and management of high-quality real estate, with a strategy centered on a simple platform, trophy assets and opportunistic investments.
The investment case is built on improving office demand, limited new supply and Cousins’ strong positioning in lifestyle-oriented workplaces. Recent results show healthy leasing momentum, rising occupancy and confidence from management, while portfolio upgrades and selective capital recycling support future growth. First-quarter 2026 leasing totaled 932,000 square feet, and portfolio occupancy improved to 88.9%.
CUZ currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2026 FFO per share has been raised marginally over the past two months, suggesting 3.17% year over year increase. The stock has risen 6.7% over the past three months.
Price and Consensus: CUZ
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
