Market Commentary | August 24, 2026

Maintaining a Full-Spectrum View on Investment Themes

While we never deviate too far from our real estate focus, we sometimes get more excited about a particular sector’s pricing trend. Is it expensive or cheap? How can we participate?

Retail

A few years back, it was shopping centers that were going unnoticed despite stringing together a half dozen quarters of impressive leasing and same-store NOI growth. But then Urstadt Biddle was acquired by Regency Centers. In August of 2023, Kimco Realty (KIM) announced it would buy RPT Properties. Simultaneously, Whitestone REIT was fending off a series of offers to take it private until it accepted $19/share in April 2026. Canadian Slate Grocery REIT (SGR.U, SRRTF) announced that its external manager was considering taking it private. All that M&A got investor notice, and share prices moved up in response.

Industrial

During the pandemic, demand and rents for industrial/logistics properties soared. The share prices for some REITs skyrocketed; some were left behind. This created a value gap that has not yet fully closed. In May 2026, Global Net Lease announced the purchase of Modiv Industrial. Lexington Industrial (LXP) in July 2026 agreed to be acquired by Brookfield Asset Management and the Canadian Pension Investment Board. Earlier this month, Prologis (PLD) announced it would merge with British property giant SEGRO. We’ve identified Industrial assets that are worth owning on their own merits, but we wouldn’t mind being rewarded if someone wants to pay more.

Senior Housing

A decade ago, demographics and easy credit brought about the over-building of the supply of senior housing. The population kept aging, but, fortunately, the building stopped. In recent quarters, senior housing has become the hottest sector in all of real estate. Leading the trend is Welltower (WELL), which has the dubious distinction of having a stock priced at a 100%+ premium to NAV, but also a CEO compensation package that’s in the stratosphere. We can’t recommend short selling WELL, so we have focused on finding bargains elsewhere in the sector. We’ve targeted preferreds and spinoffs that will pay us high dividends and capital appreciation as the silver tsunami continues to roll in.

The Excitement Continues

The level of interest rates has long been a dominant topic in commercial real estate. Lately, impatience has gotten the better of would-be buyers, and they have stepped up to do deals regardless of what the Fed does. We work tirelessly to uncover yet-to-be-discovered opportunities, and we thank you for your continued participation.

Notes and Disclosure

Articles are provided for informational purposes only. They are not recommendations to buy or sell any security and are strictly the opinion of the writer. The information contained in these articles is impersonal and not tailored to the investment needs of any particular person. It does not constitute a recommendation that any particular security or strategy is suitable for a specific person.

Investing in publicly held securities is speculative and involves risk, including the possible loss of principal. The reader must determine whether any investment is suitable and accepts responsibility for their investment decisions.

Commentary may contain forward-looking statements that are by definition uncertain. Actual results may differ materially from our forecasts or estimations, and 2MCAC and its affiliates cannot be held liable for the use of and reliance upon the opinions, estimates, forecasts, and findings in this article.

Past performance does not guarantee future results. Investing in publicly held securities is speculative and involves risk, including the possible loss of principal. Historical returns should not be used as the primary basis for investment decisions. Although the statements of fact and data in this report have been obtained from sources believed to be reliable, 2MCAC does not guarantee their accuracy and assumes no liability or responsibility for any omissions/errors.

We routinely own and trade the same securities purchased or sold for advisory clients of 2MCAC. This circumstance is communicated to clients on an ongoing basis. As fiduciaries, we prioritize our clients’ interests above those of our corporate and personal accounts to avoid conflict and adverse selection in trading these commonly held interests.

Hypertext links to other sites are provided strictly as a courtesy. When you link to any of the sites provided on our website, you are leaving this website. We make no representation as to the completeness or accuracy of information provided on these websites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information, and programs made available through this website. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the websites to which you are linking.