Keepin' It Real 

Economics, Housing, & Commercial Real Estate Analysis

1/1
Housing100logo.png
ETF express.png
Search
  • Alex Pettee, CFA
    • Jun 13, 2019
    • 1 min read

Retail REITs: Fears Of Retail Apocalypse 2.0

  • Click here to read the full report on Seeking Alpha!

  • Amid the strongest year of brick-and-mortar retail sales since 2012, Retail REITs appeared to be turning the corner last year. Suddenly, there are fears of another “retail apocalypse."

  • Store closings have unexpectedly surged in 2019 as the combination of higher minimum wages, tariff-related cost pressures, and heavy discounting have pressured margins at softline and specialty retailers.

  • More than 7,000 store closings have been announced this year, already topping 2018 total. Research firm Coresight projects up to 12,000 closings by year-end, primarily concentrated in the mall segment.

  • The bifurcation between top-tier and lower-tier retail REITs continues to widen as retailers focus investments into the highest productivity locations. Grocery-based and hardline retail categories have been the standouts.

  • While 1Q19 earnings were decent for retail REITs, 2019 is shaping up to be a tough year. Mall REITs are the lone real estate sector sitting out the REIT Rejuvenation.


  • 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