REITs were hammered in Thursday trading and rising interest rates may be to blame.

Rising 10-Year Treasury bond rates are hurting high-yielding REITs, Boenning & Scattergood analyst Floris van Dijkum told Benzinga.

Earlier today, the 10-year Treasury yield hit 2.75 percent for the first time in three years.

On Tuesday, Morgan Stanley analyst Jim Caron said rising Treasury yields likely won’t threaten the broader stock market, as he sees major buying demand in the 2.9-to-3-percent range.

Van Dijkum said in a note that Simon Property Group Inc (NYSE: SPG) investors shouldn’t be deterred by yield-related weakness.

“We believe the recent weakness has created an attractive entry point, as the company should still post solid growth in SS NOI and earnings in 2018, boosting NAV per share further,” Dijkum said. Simon Property traded lower by 1.6 percent on Thursday, while the Real Estate Select Sector SPDR Fund (NYSE: XLRE) was down 1.2 percent. Boenning & Scattergood has an Outperform rating and $240 target price for Simon.

Here’s a snapshot of some of the hardest-hit REITS in Thursday afternoon trading:

• Regency Centers Corp (NYSE: REG) was down 2.85 percent.

• Retail Properties of America Inc (NYSE: RPAI) was down 3.03 percent.

• Kimco Realty Corp (NYSE: KIM) was down 2.95 percent.

• Tanger Factory Outlet Centers Inc. (NYSE: SKT) was down 3.57 percent.

• Pennsylvania R.E.I.T. (NYSE: PEI) was down 3.14 percent.

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