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Mall REITs Delivered 22.4% Return in Q2, Outpacing Broader Sector
Mall-focused real estate investment trusts (REITs) delivered a total return of 22.4% in the second quarter of 2026, significantly outpacing the 12.2% gain of the broader REIT sector, according to a report published Monday by Stifel. The performance marks a sharp reversal from the first quarter, when the sector lagged the wider market.
Sector-Leading Performance
The mall REIT category ranked as the third-best performing REIT group during the quarter, a notable turnaround from its 2.1% return in the first quarter, which trailed the broader market's 4.8% gain. All three major mall REITs outperformed the broader sector index in the second quarter.
Key individual company returns for Q2 2026 were:
- Macerich (NYSE:MAC): led the group with a 34.2% total return. Stifel noted the company made progress on its balance sheet and portfolio optimization and completed an acquisition during the period.
- Simon Property Group (NYSE:SPG): returned 21.2%.
- Tanger Inc (NYSE:SKT): posted a 17.1% gain.
AdBearish Bets Increase
Despite the strong quarterly gains, short interest in the mall REIT sector surged by 78.1%, reaching 5.8% of the total float, as cited in the Stifel report. This indicates an increase in the number of investors betting that share prices will fall.
Macerich saw the largest increase in short interest at 89.1%, bringing its short interest to 9.2% of its float—the highest in the group. The report notes this followed a forward equity offering. In contrast, Simon Property Group had the lowest short interest at 3.4% of its float.
For investors, this juxtaposition of strong price performance and rising short interest suggests a divided market view on the future of mall properties. While recent returns have been robust, a notable contingent of traders remains skeptical about the sector's long-term recovery.