Core Insights - The REIT sector started 2026 with an average total return of +1.09% in January, underperforming the S&P 500 (+1.4%) and Dow Jones Industrial Average (+1.8%), but outperforming the NASDAQ (+1.0%) [1] - Large-cap REITs saw a widening spread in FFO multiples compared to small-cap REITs, with large caps at 16.4x and small caps at 12.8x, indicating a 28.1% premium for large-cap REITs [1] - 63.46% of REITs achieved a positive total return in January, marking a significant improvement from the previous year's -1.29% return [9] REIT Performance - REITs averaged a total return of +1.09% in January 2026, with large caps (+2.35%) trailing small caps (+3.27%) and mid caps (+2.65%) [3] - The Vanguard Real Estate Index Fund ETF (VNQ) outperformed the average REIT with a return of +2.61% [1] - The average P/FFO for the REIT sector increased from 13.4x to 13.6x during January, with 72.2% of property types experiencing multiple expansion [4] Property Type Performance - Two-thirds of REIT property types had positive returns in January, with a notable spread of 23.59% between the best (Land +15.36%) and worst (Single Family Housing -8.24%) performing types [4] - Data Centers (+8.49%) and Land (+15.36%) were the top performers, while Office (-7.24%) and Single Family Housing (-8.24%) lagged [4][5] Individual Securities - City Office REIT, Inc. was taken private at $7.00/share, while Plymouth Industrial REIT, Inc. was acquired at $22.00/share [7][8] - Gladstone Land Corporation (+22.45%) and Farmland Partners Inc. (+20.56%) led the sector in January [8] - Office Properties Income Trust (OPITQ) saw a drastic decline of -96.09% following a Chapter 11 bankruptcy filing [9] Dividend Yield Insights - High dividend yields remain a key attraction for investors in the REIT sector, with many REITs trading below their NAV [13] - Innovative Industrial Properties, Inc. leads with a dividend yield of 15.7%, followed by NewLake Capital Partners at 11.4% [15]

Core Viewpoint - The acquisition of City Office REIT, Inc. by the joint venture MCME Carell, consisting of Elliott Investment Management and Morning Calm Management, has been completed at a price of $7.00 per share, resulting in the delisting of CIO's common stock from public markets [1][2]. Group 1: Acquisition Details - MCME Carell has successfully acquired City Office REIT for $7.00 per share, leading to the removal of CIO's common stock from public trading [1]. - Over 98% of voting stockholders supported the acquisition, indicating strong shareholder approval and confidence in the transaction [2]. Group 2: Management Commentary - James Farrar, CEO of City Office REIT, emphasized that the acquisition delivers immediate and significant value to shareholders, reflecting the hard work of the team [2]. - Mukang Cho, CEO of Morning Calm Management, expressed excitement about the transaction and the potential to create value in the commercial real estate portfolio, highlighting a belief in the recovery of the office sector [2]. Group 3: Advisory Roles - Raymond James & Associates and Jones Lang LaSalle Securities acted as exclusive financial advisors for City Office REIT, while DLA Piper LLP served as special M&A legal counsel [3]. - Eastdil Secured acted as the financial advisor for MCME Carell, with Gibson Dunn & Crutcher LLP providing legal counsel [3]. Group 4: About MCME Carell - MCME Carell is an affiliate of Elliott Investment Management and Morning Calm Management, with Elliott managing approximately $76.1 billion in assets as of June 30, 2025 [4]. - Morning Calm Management focuses on special situation investing and commercial real estate credit, managing around 11 million square feet of commercial real estate [4].

Core Viewpoint - City Office REIT, Inc. has announced the tax treatment of its 2025 distributions to shareholders, providing essential information for tax reporting related to dividend distributions of taxable income [1]. Distribution Details - For common stock, the total distribution per share is $0.100 for each of the payment dates: January 23, April 24, and July 24, 2025 [3]. - For preferred stock, the total distribution per share is $0.414063 for each of the payment dates: January 23, April 24, July 24, and October 24, 2025 [4]. Company Overview - City Office REIT is an internally-managed real estate company focused on acquiring, owning, and operating office properties primarily in Sun Belt markets, currently owning or controlling 4.2 million square feet of office properties [5].

Core Viewpoint - City Office REIT has entered into a Merger Agreement with MCME, which will suspend dividends to common shareholders after the second quarter, while maintaining dividends on Series A Cumulative Preferred shares [1] Group 1 - The Merger Agreement was announced on July 24 [1] - Common shareholders will not receive dividends after the second quarter due to the merger [1] - Dividends on Series A Cumulative Preferred shares will continue despite the suspension for common shareholders [1]

Core Points - City Office REIT, Inc. announced that its stockholders approved the merger with MCME Carell Holdings, LP and MCME Carell Merger Sub, LLC [1][2] - The merger is expected to close in the fourth quarter of 2025, with shareholders receiving $7.00 per share in cash [2] Company Overview - City Office REIT is an internally-managed real estate company focused on acquiring, owning, and operating office properties primarily in Sun Belt markets [3] - The company currently owns or has a controlling interest in 4.2 million square feet of office properties and has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes [3]

Core Insights - SL Green (SLG) reported quarterly funds from operations (FFO) of $1.58 per share, exceeding the Zacks Consensus Estimate of $1.34 per share, and up from $1.13 per share a year ago, representing an FFO surprise of +17.91% [1] - The company posted revenues of $149.67 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.04%, compared to $139.62 million in the same quarter last year [2] - SL Green shares have underperformed the market, losing about 17.5% since the beginning of the year, while the S&P 500 has gained 13% [3] Financial Performance - Over the last four quarters, SL Green has surpassed consensus FFO estimates three times and topped consensus revenue estimates two times [2] - The current consensus FFO estimate for the coming quarter is $1.46 on revenues of $146.16 million, and for the current fiscal year, it is $5.87 on revenues of $591.6 million [7] Market Outlook - The sustainability of SL Green's stock price movement will depend on management's commentary during the earnings call and future FFO expectations [3][4] - The estimate revisions trend for SL Green was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The REIT and Equity Trust - Other industry is currently in the top 28% of Zacks industries, suggesting a positive outlook for stocks within this sector [8]

REIT Sector Performance - The REIT sector averaged a small negative return of -0.73% in September and remains modestly in the red year-to-date at -1.74% [1] - The average REIT underperformed compared to the broader market, which saw gains from major indices: Dow Jones Industrial Average (+2.0%), S&P 500 (+3.6%), and NASDAQ (+5.7%) [1] - The Vanguard Real Estate Index Fund ETF Shares (VNQ) outperformed the average REIT in September with a return of +0.07% and has significantly outperformed year-to-date at +5.72% [1] - The spread between the 2026 FFO multiples of large-cap REITs (16.4x) and small-cap REITs (13.9x) widened, indicating that investors are currently paying an average of 28.8% more for each dollar of FFO from large-cap REITs compared to small-cap REITs [1] Property Type Performance - Only 27.8% of REIT property types averaged a positive total return in September, with a narrow 10.69% total return spread between the best and worst performing property types [6] - Single Family Housing (-5.77%) and Infrastructure (-5.41%) were the worst-performing property types, while Data Centers (+4.92%) and Office (+3.11%) averaged the best total returns among REITs [6][7] - Year-to-date performance shows Hotels (-13.61%), Shopping Centers (-10.74%), and Land (-10.48%) have significantly underperformed, while Health Care (+21.83%) has outperformed with average gains more than double that of any other REIT property type [8][9] FFO Multiples and Valuation - The average P/FFO (2026Y) for the REIT sector rose from 13.8x to 14.1x during September, with 27.8% of property types experiencing multiple expansion [11] - Data Centers (24.6x), Land (22.6x), Manufactured Housing (17.2x), and Multifamily (17.1x) currently trade at the highest average multiples among REIT property types, while Hotels (7.2x) and Office (9.7x) are the only types with single-digit FFO multiples [11][12] Individual Security Performance - Office Properties Income Trust (OPI) saw the largest gain in the REIT sector in September at +54.26%, but remains the 3rd worst performing REIT year-to-date at -65.72% [13] - Wheeler Real Estate Investment Trust, Inc. (WHLR) was the worst-performing REIT in September with a decline of -29.27%, continuing a multi-year share price collapse with a total return of -99.73% over the first three quarters of 2025 [14] - 37.42% of REITs had a positive total return in September, while the average year-to-date total return for REITs in 2025 is -1.74%, significantly lagging behind the +9.61% return for the sector in the first nine months of 2024 [14]

Core Viewpoint - Oksenholt Capital Management's CEO has expressed significant concerns regarding City Office REIT's leadership and performance, particularly opposing the proposed merger with Elliott Capital affiliates [1] Company Concerns - The letter from Oksenholt Capital Management highlights serious issues related to City Office REIT's current management [1]

Group 1 - City Office REIT, Inc. has authorized a quarterly dividend of $0.4140625 per share for its 6.625% Series A Cumulative Redeemable Preferred Stock, payable on October 24, 2025, to stockholders of record as of October 10, 2025 [1] - The Board of Directors has resolved to suspend future quarterly common stock dividend payments until the completion of the proposed merger with MCME Carell Holdings, LP and MCME Carell Merger Sub, LLC [2] - City Office REIT is focused on acquiring, owning, and operating office properties primarily in Sun Belt markets, currently owning or controlling 4.2 million square feet of office properties [3]

Group 1 - Halper Sadeh LLC is investigating ZimVie Inc. for potential violations of federal securities laws related to its sale to an affiliate of ARCHIMED for $19.00 per share in cash [1] - City Office REIT, Inc. is under investigation for its sale to MCME Carell Holdings for $7.00 per share in cash [2] - The firm may seek increased consideration for shareholders and additional disclosures regarding the proposed transactions [3] Group 2 - Shareholders are encouraged to contact Halper Sadeh LLC to discuss their legal rights and options at no charge [4] - Halper Sadeh LLC represents investors globally who have experienced securities fraud and corporate misconduct, recovering millions for defrauded investors [4]