Solid Fundamental Backdrop More Reflected in Price; Downgrade CURB to EW as Thesis Played Out; Raise MAC PT +25% to $25 and Reiterate EW; Reiterate REG OW and Top Pick: Retail REITs | North America

Research evidence excerpt

Solid Fundamental Backdrop More Reflected in Price; Downgrade CURB to EW as Thesis Played Out; Raise MAC PT +25% to $25 and Reiterate EW; Reiterate REG OW and Top Pick: Retail REITs | North America

Idea

June 18, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMRetail REITs | North America Ronald Kamdem, CFA

Equity Analyst

Solid Fundamental Backdrop Ronald.Kamdem@morganstanley.comCaroline Long +1 212 296-8319

Research Associate

Caroline.Long1@morganstanley.com +1 212 761-0102

More Reflected in Price; Matthew Glickman

Matthew.Glickman@morganstanley.com +1 212 761-4272

Downgrade CURB to EW as Adam Kramer

Adam.Kramer@morganstanley.com +1 212 761-4623

Thesis Played Out; Raise MAC

Real Estate Investment Trusts

North America

Industry View In-LinePT +25% to $25 and Reiterate

What’s Changed

Curbline Properties Corp.EW; Reiterate REG OW and Top (CURB.N) From To

Pick RatingMacerich Co (MAC.N) OverweightFrom Equal-weightTo

Price Target $20.00 $25.00

Mall & shopping center REITs are up +20% YTD, reflecting solid

foot traffic (+2-3% YoY) & sales growth (+4-6% YoY) We move

shopping centers from most preferred subsector to neutral as

valuation reflects strong fundamentals; stay neutral malls on

valuation considerations.

Key Takeaways

CURB thesis has played out, as evidenced by strong acquisition execution, raised

2026 acquisition guidance to $850mn, and solid operating KPIs

We remain constructive on MAC’s underlying operating setup and potential

earnings inflection but see a lot in the price

Top pick REG remains our only OW in the shopping center space

We highlight key mall and shopping center industry trends

We highlight key takeaways from our NAREIT meetings in June

Downgrade CURB to EW and $30 PT

• Why now? CURB YTD total return of +33% has outperformed shopping