ICSC: K-Shaped Enthusiasm; Acquisition Euphoria

Research evidence excerpt

ICSC: K-Shaped Enthusiasm; Acquisition Euphoria

May 20, 2026 | 00:38 ET~

Retail REITs

ICSC: K-Shaped Enthusiasm; Acquisition Euphoria Retail REITs

Juan C. Sanabria Analyst

juan.sanabria@bmo.com (312) 845-4074

Eric Borden Analyst

Bottom Line: eric.borden@bmo.com (347) 213-9706

The mood at the ICSC conference in Las Vegas was decidedly upbeat. There weren't Legal Entity: BMO Capital Markets Corp.

any material credit concerns with more affluent consumers continuing to spend despite

sustained inflation pressures. After three years of questioning how long the U.S. Real Estate Investment Trusts

consumer can keep chugging along going into ICSC, everyone seems to have gotten 320

tired of looking for the cracks and is now all-in on retail. On the investments side, 300

retail is also clearly back. Private capital is aggressively bidding shopping center assets, 280

portfolio premiums have returned, and credit is abundant. We will see if higher treasury 260 300

rates cause re-trades. For now though, required investment returns may be compressing 240 200

in order to win deals. M&A seems like a matter of time with private capital eager to put 220 100

money to work and REITs trading at ~10% NAV discounts. From the public REIT investor 200 Nov May Nov May 0

perspective, size/scale also seems to be more top of mind. LHS: Price / RHS: Volume (k) Source: FactSet

Key Points

Attendance seemed more robust y/y with enthusiasm palpable. As with 2025

takeaways, demand for space remains resilient with retailers continuing to sign new

leases despite macro uncertainty.

Top 10 Takeaways Below: Full Write-Up Inside

• Affluent Consumer Spending: “K-shaped” high-end consumer remains resilient

despite inflation, tariffs, and higher gas prices; e.g., SPG 1Q26 sales +11.8%,

aided by Taubman integration.