Mall REITs: Surviving The Apocalypse, For Now

June 9, 2020 | Hoya Capital

Mall REITs: Surviving The Apocalypse, For Now Uncategorized Jun 9 Written By Mall REITs are longing for the days when the 'retail apocalypse' was their biggest concern. Despite a 100% rally from their lows, malls remain the worst-performing property sector in 2020. Malls reported collection of less than 25% of rents in April and May as retail landlords struggled to collect rent from "non-essential" tenants. Most mall REITs have eliminated their dividends.

Glimmers of hope have emerged, however, amid the economic reopening as several key mall-based tenants have reported a faster-than-expected demand recovery, prompting a substantial share price rebound. While mall REITs may be off life-support for now, the pandemic likely further amplified the significant secular headwinds facing the enclosed mall format and accelerated store closing decisions. Absent a miracle, mall REITs are likely to underperform the REIT average for the fifth straight year in 2020.

Excluding the relatively steady Simon Property, the sector should be avoided for non-speculative investors. To continue reading, click here to visit Seeking Alpha! Comments (0) Newest First Oldest First Newest First Most Liked Least Liked Add Comment --> Preview Edit --> Post Comment… Previous Previous REITs Retreat After Recent Rally [Daily Recap] Next Next REITs Extend Reopening Rally [Daily Recap]