Ragavan Bala, global co-head of real estate banking at Barclays , sat down for a video interview during Nareit’s REITworld: 2025 Annual Conference in Dallas, Dec. 8-11.
Bala said the overall macro backdrop for REITs remains constructive, supported by easing interest rates and a resilient U.S. economy. He emphasized, however, that performance varies meaningfully by sector.
“The important thing is the underlying thematics that drive what’s happening within individual REIT asset classes,” Bala said. “There’s a tale of many cities.”
While some sectors are benefiting from strong macro tailwinds, others face more muted conditions. Still, he added, “I can’t really think of any sector in the REIT space now that is facing significant structural headwinds.”
Bala highlighted digital infrastructure as a sector benefiting from AI-driven demand, while senior living continues to see favorable dynamics from aging demographics and limited new supply. Other sectors may not experience the same level of momentum, but remain fundamentally sound.
Turning to M&A, Bala said traditional activity remains below historical levels, largely due to valuation gaps. At the same time, REITs are becoming more creative. He pointed to increased cross-border investments, particularly in healthcare, and deal structures that allow buyers to acquire select assets rather than entire platforms.
Looking ahead, Bala expects REITs to maintain disciplined capital allocation, with greater use of alternative capital sources to align investments with the appropriate cost of capital into 2026 and beyond.