Shopping Center REITs: Dodging Bullets

October 1, 2019 | Hoya Capital

Shopping Center REITs: Dodging Bullets Uncategorized Oct 1 Written By We're not malls, we promise! Open-air Shopping Center REITs have delivered a relatively strong year despite the reacceleration in store closings and fears of a 'retail apocalypse 2.0'. Dodging bullets: shopping center REITs have generally avoided the wave of store closings in 2019, which have been primarily concentrated in the enclosed mall-based category. Embracing the "bricks and click"s model including in-store pickup, open-air shopping centers have proven to be more adaptable to the rapidly changing retail distribution chain.

After underperforming the REIT averages for the last decade, shopping center REITs delivered same-store NOI growth that was only fractionally below the broader REIT average in 2Q19. The bifurcation between high and low-quality retail centers continues to widen. We continue to see well-located grocery and hardline-anchored centers as the few engines of growth in the retail sector. To read the full report, click here to visit Seeking Alpha! REIT Rankings: Shopping Centers One of the four major real estate sectors, the retail real estate sector can be divided into three subsectors: enclosed malls, open-air shopping centers, and free-standing.

In the Hoya Capital Shopping Center REIT Index , we track the fourteen largest open-air shopping center REITs, which account for roughly $60 billion in market value: Regency Centers ( REG ), Federal Realty ( FRT ), Kimco ( KIM ), Brixmor ( BRX ), Weingarten ( WRI ), American Assets ( AAT ), SITE Centers ( SITC ), Retail Properties of America ( RPAI ), Acadia Realty ( AKR ), Urban Edge ( UE ), Retail Opportunity Investments ( ROIC ), Kite Realty ( KRG ), RPT Realty ( RPT ), and Urstadt Biddle ( UBA ).