01:13 PM EDT, 08/21/2025 (MT Newswires) -- There were no big surprises in terms of second-quarter leadership in the REITs and REOC space, with seniors housing still ahead of the pack on organic growth, earnings growth and positive revisions, writes RBC.

"We expect the operating momentum to carry into 2026, though the gap will likely narrow, partly from anticipated improvements in other subsectors (e.g., office)."

Chartwell (CSH-UN.TO) remains among the top in RBC's pecking order, underpinned by its sector leading earnings growth profile. Other high conviction calls include First Capital (FCR-UN.TO, portfolio is firing on all cylinders, discounted valuation), Granite (GRP-UN.TO, encouraging leasing progress in a tough market, good value), Flagship (MHC-UN.TO, strong operations) and StorageVault (SVI.TO, strong private market valuation and potentially inflecting fundamentals).

With the TSX REIT Index posting an 11% YTD total return, valuations also have improved across RBCs's gauges. For sector inflows to build, lower bond yields and better macro visibility are likely prerequisites, particularly around U.S. trade policy. Meanwhile, RBC sees attractive risk-adjusted returns among its top picks.

Price: 18.38, Change: +0.08, Percent Change: +0.44