Apartment REITs poised for income gains; Subway names new CEO; US economic indicators decline

Real estate investment trusts focused on residential properties are well positioned to achieve positive, low-single-digit operating income gains for 2025, particularly as summer leasing pushes up apartment rental rates, according to a report from data firm S&P Global Ratings.

S&P analyst Samantha Stevens said the firm expects high occupancy will allow operators to raise rents “as rental housing remains a very attractive option relative to home ownership.”

S&P researchers said the firm’s ratings on U.S. housing REITs remained primarily investment-grade as of mid-July, with all of its outlooks for multifamily REITs considered stable. East and West Coast apartment regions are expected to fare better this year than several within states such as North Carolina, Arizona, Tennessee, Colorado and Texas.

“We expect coastal multifamily REITs to outperform those in the Sun Belt over the next 12 months given supply challenges that have caused new lease rates to be negative, with pressure abating into 2026 as less new construction comes online,” the S&P Global report said. Analysts noted that some Sun Belt regions are still dealing with oversupply of new units relative to demand. 

Sandwich chain Subway named former Burger King executive Jonathan Fitzpatrick as its next chief executive officer, as one of the world’s largest restaurant companies by location count seeks to rebound from declining sales and financial struggles facing some of its franchisees.

Miami-based Subway, operator of nearly 37,000 locations worldwide, said Fitzpatrick will take the helm effective July 28. A company statement said Fitzpatrick has more than two decades of franchising and quick-service restaurant experience, serving most recently as president and CEO of Driven Brands, operator of several car repair and maintenance chains such as Meineke, Take 5 Oil Change and Fix Auto USA.

He worked earlier in several senior leadership positions at Burger King, including chief brand and operations officer. He led “the single largest menu overhaul in the brand’s history,” along with streamlining operations and updating its public image, Subway said in the Monday statement.

Subway said Fitzpatrick will work with interim CEO Carrie Walsh “to ensure a seamless transition.” Acquired in 2023 by private equity firm Roark Capital, Subway’s 2024 sales fell 3.8% from the prior year, according to industry data firm Technomic.

Subway still has nearly 20,000 U.S. locations but has struggled in recent years with location closings by franchisees, stemming in some regions from oversaturation. It has also faced rising competition from several fast-growing sandwich chains, such as Jersey Mike’s, Firehouse Subs and Port of Subs. 

An index designed to gauge business cycle momentum showed the U.S. economy continuing to slow in June, spurred by factors such as flagging consumer sentiment and orders for manufactured goods, the Conference Board reported Monday.

The New York-based economic research group said its leading economic index, based on several metrics, posted at 98.8 for June, with the year 2016 used as a base of 100, down 0.3% from the prior month. Researchers said the index declined 2.8% on an annual basis during the first half of 2025, steeper than the 1.3% annual contraction for the second half of 2024.

A stock market price rally was among positive June metrics. “But this was not enough to offset still very low consumer expectations, weak new orders in manufacturing, and a third consecutive month of rising initial claims for unemployment insurance,” Justyna Zabinska-La Monica, senior manager of business cycle indicators for the Conference Board, said in a statement.

She said the research group at this point does not forecast a recession, “although economic growth is expected to slow substantially in 2025 compared to 2024.” The Conference Board projects 2025 to attain 1.6% annual growth in gross domestic product, with trade tariff effects becoming more apparent in the second half as consumers slow spending in response to higher prices.