Stock Markets July 13, 2026 11:13 AM

Mall REITs Rally in Q2 2026, Outperforming Broader REIT Sector

Strong quarterly returns and shifting short interest mark a decisive rebound for mall-focused REITs

By Priya Menon
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Mall real estate investment trusts delivered a 22.4% total return in the second quarter of 2026, well ahead of the broader REIT sector's 12.2% gain. Macerich led the group with a 34.2% return, while Simon Property Group and Tanger posted 21.2% and 17.1% respectively. Short interest across the mall REIT group rose sharply during the quarter even as days to cover declined.

Mall REITs Rally in Q2 2026, Outperforming Broader REIT Sector
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Key Points

  • Mall REITs returned 22.4% in Q2 2026, outperforming the broader REIT sector's 12.2% gain.
  • Macerich led the group with a 34.2% total return, reporting balance sheet progress, portfolio optimization, an acquisition, and an update to Path Forward Plan version 3.0.
  • Short interest in mall REITs increased 78.1% during Q2 to 5.8% of the float, while days to cover decreased to 3.5 from 5.0.

Mall-focused real estate investment trusts recorded a notable rebound in the second quarter of 2026, returning 22.4% for the period and outpacing the broader REIT market, which returned 12.2%, according to a Stifel report released Monday.

The mall REIT segment, which had underperformed in the first quarter when it returned 2.1% versus a 4.8% gain for the overall REIT index, ranked as the third-best performing REIT category in Q2.


Top performers within the group

Macerich led the pack with a total return of 34.2% for the quarter. The company reported progress on balance sheet metrics and continued portfolio optimization, and it completed an acquisition during the quarter. Management also issued an update to its Path Forward Plan version 3.0 during the period.

Simon Property Group returned 21.2% in the quarter, while Tanger Inc generated a 17.1% gain. All three mall-focused REITs outperformed the broader REIT sector in Q2.


Short interest and trading dynamics

Short interest across the mall REIT cohort rose substantially during the quarter, increasing 78.1% to reach 5.8% of the float. Within the group, Macerich saw the largest percentage jump in short interest, rising 89.1% following a forward equity offering completed during the quarter. Tanger experienced the smallest rise in short interest among the three, with an increase of 47.6%.

Despite the increase in short positions, liquidity indicators showed a tightening of supply for covering those shorts: days to cover for the group fell to 3.5 from 5.0.

As of the report, Macerich retained the highest level of short interest measured as a percentage of float at 9.2%, while Simon Property Group registered the lowest at 3.4% of float.


Context and takeaways

The second-quarter performance underscores a pronounced quarter-to-quarter swing for mall REITs relative to the broader REIT universe. The data highlight differentiated returns among individual issuers and notable shifts in short positioning and trading metrics during the period.

Where the market goes from here is not addressed in the report. The published figures provide a snapshot of performance, balance sheet and portfolio actions for Macerich, and short interest trends across the mall REIT segment for Q2 2026.

Risks

  • Elevated short interest in the mall REIT group could affect price volatility and liquidity in the real estate sector.
  • Concentration of short interest at individual names, such as Macerich's 9.2% of float, represents a specific market risk for investors in that issuer.
  • Reductions in days to cover may increase sensitivity to rapid position adjustments, potentially impacting trading dynamics in REIT and real estate securities.

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