Keepin' It Real 

Economics, Housing, & Commercial Real Estate Analysis

1/1
Housing100logo.png
ETF express.png
  • Alex Pettee, CFA

Mall REITs: Surviving The Apocalypse, For Now

  • 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!

  • Facebook Social Icon
  • Twitter Social Icon
  • LinkedIn Social Icon

Hoya Capital Real Estate, LLC

Invest@HoyaCapital.com

(833) HOYA-CAP

Hoya Capital Real Estate ("Hoya Capital") is an SEC-registered investment advisory firm that provides investment management services to ETFs, individuals, and institutions, focusing on portfolio and index management of publicly traded securities in the real estate industry. It is not possible to invest directly in an index. Index performance cited in this website or commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Nothing on this site nor any published commentary by Hoya Capital is intended to be investment, tax, or legal advice or an offer to buy or sell securities. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and should not be considered a complete discussion of all factors and risks. Data quoted represents past performance, which is no guarantee of future results. Investing involves risk. Loss of principal is possible. Investments in companies involved in the real estate and housing industries involve unique risks, as do investments in ETFs, mutual funds, and other securities. Hoya Capital has no business relationship with any company discussed/mentioned. Hoya Capital never receives compensation from any company discussed/mentioned. Hoya Capital, its affiliate, and/or its clients and/or its employees may hold positions in securities or funds discussed on this website and our published commentary. A complete list of holdings and other important disclosures and definitions are available by clicking the links below.

Privacy Policy 

 Client Relationship Summary 

Hoya Capital's ADV Part 2

Important Disclosures, Definitions, & List of Holdings 

Seeking-Alpha-Logo.png

The Easy Way To Invest In Real Estate