REITs: The Weekly DBrief: The ICSC Preview Edition

Research evidence excerpt

REITs: The Weekly DBrief: The ICSC Preview Edition

Deutsche Bank

Research

North America Industry Date

REITs REITs 15 May 2026

The Weekly DBrief: The ICSC Preview Edition

Omotayo Okusanya

Weekly Performance Research Analyst

Macro Performance: This week (Thursday to Thursday), the MSCI US REIT Index +1-212-250-9284

(RMZ) was flat and underperformed the S&P 500 (+2.2%), as the 10-Year

Treasury yield increased +6 bps w/w. The move higher in rates was driven by Peter Abramowitz

Research Analyst hotter-than-expected inflation data, with both CPI and PPI coming in above +1-212-250-9504

consensus and reinforcing the view that inflation remains meaningfully above the

Fed’s 2.0% target. The PPI print was particularly notable, as elevated energy Samuel Ohiomah

appears to be flowing through producer input costs, adding another layer of Research Associate

+212-250-0057 inflation pressure at a time when the labor market is showing signs of slowing. For

REITs, the underperformance is consistent with a rate-sensitive sector facing Rafi Lewis

pressure from higher yields, as stickier inflation could limit the Fed’s flexibility and Research Associate

keep cost of capital from improving in the near-term. We note that within REITs,

underperformance this week tended to be concentrated amongst highly levered Steven Pizzella, CFA

Research Analyst subsectors like Towers/Infrastructure as well as long lease duration (i.e. bond like +1-212-250-9817

duration) subsectors – all in response to higher interest rates.

Benjamin Soff

Sector Performance: The top-performing REIT sectors this week were Healthcare Research Analyst

(+2.5%), Malls (+1.1%), and Specialty (+0.5%). Underperforming REIT sectors +1-212-250-3716

were Infrastructure (-5.2%), Gaming (-2.9%) and Manufactured Homes (-2.9%).