With the second-quarter earnings season underway, profits from early reporters may catch investors’ attention. Yet, rather than chasing stocks that have already delivered, focusing on those poised to outperform expectations may offer greater upside. An earnings beat often serves as a catalyst, enhancing investor sentiment and pushing share prices upward.

This is likely to be reflected in the earnings releases of Realty Income Corporation (O Quick QuoteO - Free Report) , Americold Realty Trust, Inc. (COLD Quick QuoteCOLD - Free Report) and Plymouth Industrial REIT, Inc. (PLYM Quick QuotePLYM - Free Report) .

REITs, which support both physical and digital economic activity, often show resilience even in challenging markets. By examining the sector’s underlying fundamentals, investors can uncover potential opportunities for stable returns and long-term growth. Let’s explore where strength lies within the industry and how it may offer value despite broader market uncertainty.

Industry Fundamentals

For example, per a Cushman & Wakefield report, in the second quarter of 2025, the U.S. industrial real estate sector remained resilient amid headwinds, with net absorption totaling 29.6 million square feet, roughly in line with the prior quarter but below its historical average. Though the pace of growth has cooled, absorption remained steady, reflecting sustained demand amid economic uncertainty and rising tariffs. Activity varied significantly by region and asset type. 

Vacancy continued its upward trend, rising 20 basis points sequentially to 7.1%. For the first time since the second quarter of 2014, vacancy rose above 7%, but it remains just 10 basis points above the 15-year pre-pandemic historical average. Meanwhile, industrial asking rent growth slowed to 2.6% in the second quarter, its weakest pace since early 2020, as softening demand and rising vacancies are putting the brakes on rent growth. Despite headwinds, leasing activity remained solid, totaling nearly 309 msf in the first half of the year, driven by large-scale deals and steady 3PL demand.

For REITs dealing with retail real estate, we note that, per a report from CBRE Group (CBRE Quick QuoteCBRE - Free Report) , even as demand remained robust for prime, high-traffic retail locations, the overall retail availability rate rose for the second straight quarter, reaching 4.9% at the end of the second quarter, due to retailer bankruptcies and downsizing efforts. The CBRE report noted that net absorption was negative for the second straight quarter, aggregating 5 million square feet in the second quarter, amid move-outs, closures and delayed occupancies.

Construction completions totaled just 4.1 million square feet in the second quarter, a slight decline from 4.4 million square feet in the first quarter and significantly below the 10-year quarterly average of 11.9 million square feet. Developers remained cautious, scaling back speculative builds in favor of preleased and build-to-suit developments. 

The average asking rent rose modestly to $24.79 per square foot, up 0.1% from the prior quarter and 0.5% from the previous year, as landlords in weaker markets eased rent hikes in response to subdued demand and heightened tenant price sensitivity. However, in this environment, some retail REITs, backed by their business models and strategic efforts, are better positioned to navigate and deserve our attention.

The Zacks Methodology

Picking the right stock could be difficult unless one knows the proper method. To make the task simple, we rely on the Zacks methodology, combining a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP.

Our proprietary methodology, Earnings ESP, shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Research shows that for stocks with this combination of the Zacks Rank and ESP, chances of a positive earnings surprise are as high as 70%.

Here are three REITs that have the right combination of elements to deliver positive surprises this earnings season. 

Realty Income currently carries a Zacks Rank of 3 and has an Earnings ESP of +0.30% for the quarter under review. Over the trailing four quarters, the company’s adjusted funds from operations (AFFO) per share surpassed the Zacks Consensus Estimate on one occasion, met twice and missed in the remaining period. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Realty Income Corporation Price and EPS Surprise

Realty Income Corporation price-eps-surprise | Realty Income Corporation Quote

Realty Income is expected to deliver steady results in the second quarter, supported by its high-quality, diversified portfolio and resilient tenant base. With a 98.5% occupancy rate as of March 2025 and a focus on tenants with non-discretionary, low price point and service-oriented sectors, the REIT is likely to have maintained stable earnings. Strategic expansions into industrial, gaming and data centers, along with solid financials and strong credit ratings, may have driven continued growth and revenue momentum in the quarter. (Read more: Should You Buy, Hold or Sell Realty Income Stock Ahead of Q2 Earnings?)

Realty Income is scheduled to release second-quarter earnings on Aug. 6, after market close.

The Zacks Consensus Estimate for quarterly revenues is pegged at $1.40 billion, which suggests a 4.21% increase from the year-ago quarter’s reported figure. The consensus mark for second-quarter 2025 AFFO per share has remained unrevised at $1.06 over the past two months. It implies no growth year over year. 

Americold Realty Trust carries a Zacks Rank of 3 and has an Earnings ESP of +0.74% for the to-be-reported quarter. Over the trailing four quarters, Americold surpassed the Zacks Consensus Estimate on two occasions, met in another and missed in the remaining period, the average surprise being 3.79%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Americold Realty Trust Inc. Price and EPS Surprise

Americold Realty Trust Inc. price-eps-surprise | Americold Realty Trust Inc. Quote

Americold’s facilities serve as an essential component of the supply chain, linking food producers, processors, distributors and retailers to consumers. With a focus on temperature-controlled warehouses, COLD is expected to have benefited from the rising demand for cold storage facilities. With the growing trend of e-commerce and the increasing demand for temperature-controlled supply chains, Americold Realty's specialized asset class could offer a defensive play in uncertain times. COLD is also expected to have benefited from the enhancements made to its technology and operating platforms.

Americold Realty Trust is slated to release second-quarter earnings results on Aug. 7, before market opens.

Currently, the Zacks Consensus Estimate for the company’s quarterly revenues stands at $647.54 million. The consensus mark for the quarterly FFO per share is pegged at 34 cents. 

Plymouth Industrial holds a Zacks Rank #2 and an Earnings ESP of +2.33% at present. Over the trailing four quarters, PLYM’s FFO per share surpassed the Zacks Consensus Estimate once, met once and missed in the remaining two periods.

Plymouth Industrial REIT Price and EPS Surprise

Plymouth Industrial REIT price-eps-surprise | Plymouth Industrial REIT Quote

PLYM’s second-quarter performance is likely to have witnessed the ongoing effectiveness of its capital redeployment strategy into accretive investments, alongside solid leasing activity across its portfolio. The company also remained active on the acquisition front during the quarter, continuing its strategic growth approach.

Plymouth Industrial is scheduled to report its quarterly figures on Aug. 6, after market close.

The Zacks Consensus Estimate for second-quarter total revenues is pegged at $46.71 million. The consensus mark for the quarterly FFO per share stands at 43 cents. 

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.