Morgan Stanley analysts led by Richard Hill downgraded the REIT Industry to Cautious due to the combined impact of rising rates and slower growth. The analyst said occupancy and rents are peaking resulting in decelerating revenue growth and absolute REIT valuations do not look cheap. As part of the sector change, Hill downgraded DDR Corp.(DDR), Extra Space Storage (EXR) and UDR, Inc. (UDR) to Underweight from Equal Weight, Paramount Group (PGRE), STORE Capital (STOR), Gaming and Leisure Properties (GLPI) to Equal Weight from Overweight, and upgraded Equity Residential (EQR) to Equal Weight from Underweight and Realty Income (O) to Overweight from Equal Weight.