Earnings Update: Specialty REITs (Q4 2025)
As we have explained in previous updates on our specialty REIT holdings, this group of REITs has little in common with each other other than that they do not fit in any of the traditional real estate categories.
Notably, two of our holdings, SBAC and UNIT, have recently become buyout targets, with SBAC receiving takeover interest from large infrastructure funds and UNIT attracting interest from T-Mobile and TPG. This further highlights the disconnect between public market valuations and private market demand for these assets.
Over time, especially as data centers have proliferated, non-traditional real estate sectors have increased their share of REIT market capitalization.
The only two commonalities between our specialty REIT holdings is (1) each one’s strong market position in their particular niche and (2) inflation-resistant property assets.
CCI and SBAC each own a critical mass of wireless communication towers that give them enviable scale advantages.
NLCP is one of an elite few cannabis REITs with any access at all to public markets, even if currently only over-the-counter. It also owns a strong and nationally diversified portfolio of cannabis properties.
CUBE is one of the largest and most efficient self-storage REITs in the US with a growing third-party asset management platform, allowing storage operators to maintain control of their businesses while benefiting from CUBE’s scale, brand, and operating efficiency.
Lastly, after merging with PotlatchDeltic earlier this year, RYN is the second-largest owner of timberland in the nation with over 4 million acres, putting it behind only Weyerhaeuser (WY). While timber remains RYN’s primary business, linking it to the cyclicality of that commodity, the REIT’s massive land holdings in the South provide numerous options for value creation from higher and better uses (renewable energy, carbon storage, or real estate development).
While CCI, SBAC, and CUBE tend to be more defensive and recession-resistant, NLCP and RYN enjoy significant inflation protections and benefit from stronger economic growth.
Let’s now turn to the Q4 2025 earnings updates for our specialty REITs.
