We initiate coverage on U.S. REITs with a Positive view. Across our coverage, we generally prefer Sunbelt names – even after strong stock price and fundamental performance, we think Sunbelt-oriented REITs can continue to outperform across most asset classes as strong population growth and income growth help REITs drive higher rent growth. Forward projections for employment growth suggest a 70bps premium for jobs growth, a 40bps premium for employment growth, and a 50bps premium for real income growth for a group of the most relevant Sunbelt markets (Atlanta, Austin, Phoenix, and the like) versus traditional focus gateway markets (NYC, San Francisco, Boston). These dynamics have correlated, and should continue to correlate, to higher rent growth for many of our coverage names. PE and institutional interest in Sunbelt real estate continues to broaden, which we think will continue to spill over into public REIT valuations.