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
Thu, Apr. 28, 6:15 AM
Wed, Apr. 27, 4:38 PM
Tue, Apr. 26, 5:35 PM
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Tue, Feb. 23, 4:07 PM
Mon, Feb. 22, 5:35 PM
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Thu, Jan. 7, 4:25 PM
- According to Reis, the vacancy rate for regional malls fell to 7.8% in Q4 from 7.9% a quarter earlier. The cycle peak of 9.4% was hit in 2011 Q3.
- For neighborhood and community malls, the vacancy rate slipped to 10% from 10.1% The cycle peak was 11.1% in 2011 Q3.
- Net absorption isn't that great, says Reis, but it's at least outpacing the sluggish pace of construction.
- Rents continue to grow as well, up 0.5% in Q4, with asking rents up 2% Y/Y and effective rents up 2.2% - both a bit better than what 2014 saw.
- Interested parties: SPG, GGP, BRX, KIM, WRI, MAC, TCO, PEI, ROIC, RPAI, IRC, FRT, DDR, WHLR, WSR
Oct. 28, 2015, 4:24 PM
- Retail Opportunity Investments (NASDAQ:ROIC): Q3 FFO of $0.26 beats by $0.02.
- Revenue of $50.08M (+22.6% Y/Y) beats by $2.26M.
Sep. 30, 2015, 9:10 AM
Sep. 3, 2015, 9:51 AM| Sep. 3, 2015, 9:51 AM
Aug. 5, 2015, 7:33 AM
- The 4.8M share offering was upsized by 300K shares and priced at $16.55 each for net proceeds of roughly $75.8M. The underwriters have an option to buy up to another 720K shares at that price.
- ROIC -3.9% to $16.45
- Previously: Retail Opportunity Investments announces 4.5M share secondary (Aug. 4)
Aug. 4, 2015, 4:13 PM
- The underwriter greenshoe is for another 675K shares.
- ROIC intends to use the proceeds to pay down its $500M revolver.
Jul. 29, 2015, 4:24 PM
- Retail Opportunity Investments (NASDAQ:ROIC): Q2 FFO of $0.23 in-line.
- Revenue of $46.22M (+26.6% Y/Y) misses by $0.5M.
Jul. 17, 2015, 2:38 PM
- Total returns for retail REITs year-to-date through mid-July of negative 2.61% are about 100 basis points lower than the FTSE NAREIT All-Equity REIT average. Digging further into the retail sector, regional malls - Simon Property (NYSE:SPG), General Growth (NYSE:GGP) and Macerich (NYSE:MAC), for example - have done the best with a negative return of just 1.92%. Shopping centers - Kimco (NYSE:KIM), Retail Opportunity (NASDAQ:ROIC), Federal Realty Investment (NYSE:FRT), for example - have a negative return of 2.94%.
- Free-standing retail REITs - think Realty Income (NYSE:O), National Retail Properties (NYSE:NNN), Spirit Realty (NYSE:SRC) - have fared worst with a negative 4.83% total return. Trepp's Susan Persin notes the returns of these stocks are bond-like thanks to the long-term nature of their leases, and thus most sensitive to higher rates.
- Not helping was a lame retail sales report for June, and on top of that the National Retail Federation's forecast for back-to-school spending to fall 9.3% this year.
May 14, 2015, 4:49 PM
- The team at Wells Fargo finds seven REITs most at risk of a takeover, writes Jake Mooney at SNL Financial. What they have in common are sustained discounts to NAV, market caps less than $5B, and relatively low debt ratios - important because it allows added leverage without violating debt covenants.
- At risk? The higher debt loads following a privatization could be harmful to existing bondholders. Stockholders, of course, might feel differently.
- The seven: Mack-Cali (NYSE:CLI), Education Realty Trust (NYSE:EDR), Equity One (NYSE:EQY), Healthcare Realty (NYSE:HR), Retail Opportunity Investments (NASDAQ:ROIC), Post Properties (NYSE:PPS), and Washington Real Estate (NYSE:WRE).
- In the right environment, why limit candidates to smaller REITs? Stifel's Daniel Bernstein suggests Ventas (NYSE:VTR) could go for the equivalent of a 5% cap rate or $90 per share, given Blackstone paid a 6.2% cap rate for Excel Trust, and Associated Estates sold with a cap rate below 5%. Similar cap rates would produce tasty premiums for HCP, Health Care REIT (NYSE:HCN), Healthcare Realty Trust (HR), and Healthcare Trust of America (NYSE:HTA).
Apr. 30, 2015, 3:15 PM
- A big rise in interest rates early in the session made for a good excuse to sell REITs, but - with the averages sharply lower - rates have reversed course. Still, the sector can't catch a bid, with many of the bigger names down way more than the broader market.
- Equity REITs: Realty Income (O -2.3%), Health Care REIT (HCN -3.2%), Ventas (VTR -3.2%), HCP (HCP -3.1%), Equity Residential (EQR -2.6%), Silver Bay Realty (SBY -2.5%), General Growth Properties (GGP -2.4%), Retail Opportunity (ROIC -3.9%), Boston Properties (BXP -2.4%), Hospitality Properties (HPT -2.9%)
- Mortgage REITs: Armour Residential (ARR -5.6%) - which reported another weak quarter overnight, Two Harbors (TWO -1.1%), Western Asset (WMC -1.3%), Arlington Asset (AI -2.8%), PennyMac (PMT -1.5%). When things get tough, money does have a tendency to flow into the sector giants though: Annaly Capital (NLY -0.4%) and American Capital Agency (AGNC +0.3%) are notable outperformers on the session.
- ETFs: IYR, VNQ, DRN, URE, REZ, SCHH, ICF, SRS, RWR, KBWY, DRV, REK, FRI, FTY, PSR, FREL, WREI
Retail Opportunity Investments Corp. operates as a self-managed real estate investment trust. It specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers on the west coast of the United States anchored by supermarkets and drugstores.... More
Industry: Diversified Investments
Country: United States
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