Mon, Jun. 27, 3:20 PM
- There's plenty of green in the REIT space today, with the IYR off just 0.25% (vs. the S&P 500's 2% decline). Helping is the continuing plunge in interest rates, with the 10-year yield at 1.46% within seven basis points of an all-time low.
- Among the gainers are Realty Income (O +1.7%), National Retail Properties (NNN +1%), Senior Housing (SNH +2.2%), Omega Healthcare (OHI +0.9%), AvalonBay (AVB +1.1%), Kimco (KIM +1.3%), Tanger Factory (SKT +1.9%), and Public Storage (PSA +3.8%).
- Lodging REITs, however, are dependent on a steady stream of overseas tourist money, and the dollar's continued surge vs. everything not named the yen promises to crimp foreign visits. Ashford (AHT -6.6%), Sunstone (SHO -4.8%), LaSalle (LHO -4.1%), Pebblebrook (PEB -4.2%), Chesapeake (CHSP -3.3%), Host (HT -6.7%), DiamondRock (DRH -4.8%), Apple (APLE -2.9%), FelCor (FCH -5.4%).
Thu, Jun. 9, 4:08 PM
- Part of Kimco's (NYSE:KIM) "2020 Vision" in which its an owner and operator of a highly concentrated portfolio of open-air shopping centers in major metropolitan U.S. markets, the company announces the sale of interests in a 17-proprety Canadian portfolio to Anthem Properties Group for a total sale price $324M. Kimco's share of the sale was $291.6M.
- The company separately sold interests in two other Candaian shopping centers.
- Kimco now has interests in just nine shopping centers in Canada, and expects to sell those by year-end.
- Source: Press Release
Thu, Jun. 9, 11:52 AM
- The team hosted meetings with 29 companies over two days across six subsectors. Some highlights:
- Lodging: Business travel remains soft and most are operating defensively by grouping up and reducing leverage. NYC is flooded with hotels available for sale which should pressure pricing.
- Apartments: The slowdown in NoCal is concentrated in Soma and San Jose, but expected to be temporary. The NYC slowdown is expected to endure through 2017. Merchant builders in Houston with deliveries in 2017 are in trouble - an opportunity for Camden Property Trust (NYSE:CPT) to pick up assets on the cheap.
- Malls: Concerns over department stores are overblown. Simon Property (NYSE:SPG) expects spreads to top mid-teens in the next five years. Omni-channel retail strategy is growing increasingly important as the WSJ reports 80% of online sales touch brick and mortar in some way.
- CS's Ian Weissman is ranked #1,134 out of #3,990 analysts on TipRanks.com.
- Tickers of interest: HPT, SHO, LHO, PEB, CHSP, INN, RLJ, EQR, AVB, ESS, PPS, UDR, AIV, GGP, BRX, KIM, WRI, MAC
Wed, May 18, 10:42 AM
- Target is the latest major retailer to report a disappointing Q1 and issue weak forward guidance. It's lower by 9% today.
- Those REITs which may rent to the likes of Target or Wal-Mart or Macy's or Nordstrom ... may be starting to sense a trend.
- Simon Property (SPG -1.1%), General Growth (GGP -1.5%), Kimco (KIM -1.6%), PREIT (PEI -1.8%), DDR (DDR -1.7%), CBL (CBL -3.1%), Federal Realty (FRT -1.2%).
- IYR -0.95%
Tue, May 17, 11:02 AM
- Following up on yesterday's story about the divergence between the stock prices of major retailers (down) and those of their landlords (up), Bloomberg's Rani Molla and Shelly Banjo break down the numbers further.
- They find those REITs with a large portion of portfolios concentrated in malls are down 10% Y/Y vs. all REITs, which are higher by 6%. Going further, they find those REITs with exposure to higher-end malls and outlet centers - Simon Property Group (NYSE:SPG) and Tanger Factory (NYSEMKT:SKY) come to mind – have been spared, while those owning older malls have taken the hit. CBL & Associates (NYSE:CBL) and WP Glimcher (NYSE:WPG) are down 40% and 30% this year, respectively.
- It's easy to pick on mall owners, but a broad slowdown at brick-and-mortar stores is ultimately a threat to all retail landlords, as traffic across all types of retail real estate in the U.S. and Canada has fallen as much as 18% Y/Y.
- On the good side is low supply as developers have stopped building, but even that's begun to run its course, they write.
- REITs of interest: O, NNN, GGP, KIM, WRI, MAC, TCO, PEI, SKT, TCO, ROIC, RPAI, IRC, FRT, DDR, WHLR, EQY, KRG, REG
Mon, May 16, 9:39 AM
- The retail sector has made a lot of headlines of late with a series of poor earnings and forward guidance reports ... and the stock prices of retailers have subsequently been marked down.
- It's created a sizable divergence with the stock prices of the landlords who depend on a steady stream of rising rents from those retailers, notes Marketfield Asset Management's Michael Shaoul.
- via Bloomberg
- REITs of interest: O, NNN, SPG, GGP, KIM, WRI, MAC, TCO, PEI, SKT, TCO
Thu, Apr. 28, 6:23 AM
Wed, Apr. 27, 4:12 PM
Tue, Apr. 26, 5:35 PM
- ACGL, AEL, AF, ALGT, AMKR, AMP, ANIK, AR, ASGN, AVB, AVG, BCR, BGC, BKCC, BLKB, CACI, CAKE, CAVM, CBL, CDE, CGI, CLI, CMO, CMPR, CNMD, CNO, CRY, CSGP, CVTI, DGI, DLB, DMRC, DRE, DTLK, DWRE, DXCM, ECHO, EFX, ELY, EQY, ESRT, ESV, EXTR, FB, FIX, FNF, FORM, FORR, FR, FSLR, GG, HOLX, HTCH, HY, IBKC, INFN, IPHS, KEX, KIM, KRA, KRC, KS, LLNW, LOCK, LOGI, LQ, MANT, MAR, MC, MEOH, MMLP, MN, MSTR, MTGE, NE, NEU, NGD, NTGR, NVDQ, OIS, ORLY, OTEX, PEB, PPC, PRXL, PYPL, QDEL, QEP, QGEN, RCII, RGLD, RNG, ROIC, SCI, SFLY, SGI, SIMO, SNDK, SPRT, SSS, STR, TAL, TER, TILE, TS, TTEK, TTMI, TXN, TYL, UHS, UNM, VAR, VRTX, WCN, WIRE, WLL, WRE, WSR, XL, XLNX
Mon, Apr. 25, 9:44 AM
- Being mulled by owners of shopping centers/malls this morning is new research from Green Street Advisors suggesting department stores need to close about 800 locations, or 20% of all anchor space in U.S. malls.
- Sears alone would need to close 43% of its stores to get inflation adjusted sales per square foot back to 2006 levels. Of course, retailers like Sears, Macy's, and J.C. Penney have already closed hundreds of spots over the past few years.
- The Green Street study says sales per square foot of $165 last year were down 24% from 2006, while physical footprints are off just 7%.
- Department stores may not agree. J.C. Penney CFO has said that when the company closes a store - particularly in a small market - dot.com business also goes down.
- Watching with interest: RPAI, IRC, KIM, FRT, DDR, EQY, CBL, SPG, GGP, BRX, WRI, PEI
Thu, Apr. 14, 12:26 PM
- "Quality trumps value," says analyst Haendel St. Juste initiating coverage on ten retail REITs. Mall REITs are already up 5% YTD, and shopping centers up 7%. St. Juste and team think there's another 10% upside.
- Four of the ten names are Buy-rated: American Assets Trust (AAT -0.2%), General Growth Properties (GGP -0.2%), Simon Property Group (SPG -0.1%), and Taubman Centers (TCO +0.2%).
- Neutral rated: Brixmor (BRX -0.1%), CBL & Associates (CBL -0.9%), DDR (DDR +0.4%), Federal Realty (FRT -0.3%), Kimco (KIM -0.5%), and Macerich (MAC -0.4%).
- St. Juste: "Our stock picks have a pronounced bias toward higher productivity platforms, a somewhat consensus view, but an appropriate one given the current environment and prevailing valuations."
- Now read: Red Flags For Sears Pensioners (April 14)
Thu, Apr. 14, 8:47 AM
- Mizuho initiates Kimco (NYSE:KIM) at Neutral, with a price target of $28.50, more or less at current price.
- Firm notes KIM's simplification process is effectively over, and notes that 2016 should be the final year where dispositions exceed acquisitions, suggesting Kimco will be a net grower going forward.
- "In addition, today's Kimco is better positioned to leverage its size and scale in an environment of solid industry fundamentals and reap the benefit of its efforts."
- Now read When Analysts Warn About A Dividend Cut, Should You Listen? »
Mon, Apr. 11, 9:27 AM
- Kimco announces the purchase from Canada Pension Plan Investment Board of the remaining 45% interest in the Oakwood Plaza shopping center and the Dania Pointe development project for a gross price of $299.2M, including the assumption of $100M in mortgage debt.
- The two Hollywood properties are adjacent and situated along I-95.
- The purchase is in line with the KIM plan to own large, high-quality assets in major markets, and to cull the JV portfolio.
- Source: Press Release
- Now read: How Do REITs Pay More Than They Earn? (March 17)
Tue, Feb. 2, 4:08 PM
Mon, Feb. 1, 5:35 PM
Mon, Jan. 11, 3:25 PM
- Since the company launched its simplification initiative in 2014, it's now sold interests in 186 properties for $1.8B, including the exit from Mexico and South America, and the reduction of its Canadian platform. It's also transformed its U.S. shopping center portfolio to become concentrated in core metro markets with the purchase of 119 properties for $3.5B.
- The number of properties in JVs was cut to 194 from 412.
- This month, Kimco (KIM +1.3%) engaged in a trio of deals which will result in it owning 100% of Owings MIlls Mall (Baltimore area).
Kimco Realty Corp. operates as a real estate investment trust. The company engages in the ownership, management, development and operation of retail shopping centers. It also provides property management services for shopping centers owned by affiliated entities, various real estate joint... More
Industry: REIT - Retail
Country: United States
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