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RBC Capital Markets Identifies Attractive Entry Points for Canadian REITs Amid Market Volatility
Finance · Real Estate Investment Trusts · globe_inside_market · 2026-08-25
RBC analyst Pammi Bir highlights top REIT picks following a resilient Q2 earnings season, while BofA strategists pivot toward large-cap value stocks.
What Happened
REIT Sector Analysis: RBC Capital Markets analyst Pammi Bir notes that while Q2 earnings were largely in line with expectations, the sector faced pressure from rising bond yields. Despite this, seniors housing continues to lead with 30% year-over-year growth, and analysts see attractive entry points for several top picks including CSH, DIR, and REI.
Canadian Economic Outlook: BMO senior economist Shelly Kaushik anticipates a solid second quarter for Canada, supported by rising retail volumes and firm manufacturing data. While June economic activity showed strength, upcoming months face potential headwinds from renewed trade uncertainties and tariff-related pressures.
Market Strategy Shift: BofA Securities strategist Savita Subramanian advises investors to move away from momentum-based strategies following a volatile 2026. Historical data suggests that large-cap value stocks are better positioned for outperformance compared to momentum plays in the current market environment.
Large-Cap Value Recommendations: BofA has identified a screen of high-quality companies with positive price momentum and strong earnings revisions. Notable names on the list include Microsoft, Salesforce, Thermo Fisher Scientific, and United Airlines, which are currently favored for their robust earnings yields.