JP Morgan shakes up REIT ratings amid mixed performance outlook

In the United States, during JP Morgan's quarterly Commercial Real Estate (CRE) update webinar, analyst Michael W. Mueller made significant rating changes to several real estate investment trusts (REITs). He upgraded Ventas Inc. from Neutral to Overweight, reflecting a positive outlook supported by robust same-store net operating income growth and a steady acquisition pace, raising the price target to $72 by December 2025. In contrast, Mueller downgraded Americold Realty Trust from Overweight to Neutral, citing current operational pressures and a revised price target of $21 amidst an uncertain growth landscape expected to improve only in 2026. Additionally, Federal Realty Investment Trust was downgraded to Neutral as its growth drivers shifted, setting a price target of $108. Moreover, Lineage Inc. also faced a downgrade to Underweight, with the price target cut to $50 due to headwinds in the cold storage sector, anticipated weaker throughput volumes, and lower occupancy rates. The downgrade reflects line management’s revised 2025 AFFO outlook that falls below previous guidance, contributing to a cautious sentiment around its performance. Meanwhile, JP Morgan analyst Alexei Gogolev downgraded CCC Intelligent Solutions from Neutral to Underweight, giving it a price target of $10. Gogolev highlighted concerns over declining claims volumes, forecasting this trend might persist into 2026, which has been attributed to rising insurance costs impacting consumer behavior. Although CCC Intelligent Solutions expected a recovery through new solutions contributing to future growth, the adoption rates have lagged behind expectations. The broader implications of these downgrades indicate a cautious outlook toward several REITs, reflecting the macroeconomic challenges faced by these sectors and a focus on operational stability moving forward.