Taubman Centers, Inc.NYSE
Fri, Dec. 2, 8:35 AM
Tue, Nov. 8, 7:47 AM
- The moves involve outright purchases of retailers, such as when General Growth (NYSE:GGP) teamed with Simon Property (NYSE:SPG) and others to purchase Aeropostale in September, or just buying up retailer stores.
- Source: WSJ's Esther Fung
- Since the start of Q3, General Growth has purchased five stand-alone Macy's stores for $48M.“We’ve been pretty opportunistic here,” says CEO Sandeep Mathrani, who doesn't rule out further acquisitions (GGP has also purchased space from Sears in the past).
- "Investors are trying to figure out how much of this is reactionary or defensive and how much of it is to push the quality of the portfolio," says Green Street Advisors' D.J. Busch. "We're in the middle of the transition."
- At least one investor isn't seeing the wisdom, as Land & Buildings has been waging a campaign against Taubman Centers (NYSE:TCO) to consider cutting costs and selling assets, rather than expanding. Taubman closed yesterday at $70.71 versus NAV estimates of about $99 per share.
Mon, Nov. 7, 8:55 AM
- Retail REITs have dipped 21% since August 1, underperforming the broader REIT market by 600 basis points, says Mizuho's Haendel St. Juste. In addition to the higher interest rates faced by all REITs, the retail names have to deal with soft sales and store closures.
- Mizuho, however, is a fan of "high-quality" portfolios selling at large discounts like Macerich (NYSE:MAC), Taubman (NYSE:TCO), American Assets Trust (NYSE:AAT), and Federal Realty (NYSE:FRT), and upgrades MAC and AAT to Buy from Neutral.
- Upgrading DDR to Neutral from Underperform, St. Juste says there's "compelling" risk-adjusted value despite near-term headwinds, and worries about rising cap rates for lower-quality assets.
- Over the weekend: Barron's: REITs are on sale (Nov. 5)
Tue, Nov. 1, 4:30 PM
Mon, Oct. 31, 5:35 PM
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Thu, Oct. 20, 7:46 AM
- Land and Buildings' latest target is Taubman Centers (NYSE:TCO), and it urges the board's independent directors to take immediate action to fix dismal performance and unlock substantial trapped value.
- Jonathan Litt and team say current NAV is $106 and current fair value is $144. Prior to a big move up following release of their letter and a conference call yesterday, the share price was about $71. They've launched a website: www.savetaubman.com.
- Responding, Taubman says it welcomes an open and constructive dialogue toward the goal of boosting long-term value.
- TCO gained 4.9% yesterday to $74.64.
Wed, Oct. 19, 3:54 AM
- Activist investor Jonathan Litt wants Taubman Centers (NYSE:TCO), one of the largest operators of shopping malls in the U.S., to cut costs and reverse its expansion or look at selling itself, the WSJ reports.
- Litt, whose Land & Buildings Investment Management firm owns around 1% in Taubman, is frustrated at the latter's poor stock price compared with other companies that Litt holds in the sector.
- The share is down 7% this year and closed at $71.17 yesterday, well below the $99.62 a share that analysts estimate is the net asset value of Taubman's properties.
- Litt reckons poor governance is to blame for the gap and is seeking changes on the board among other things.
- Taubman's market cap is $4.3B.
- Taubman wouldn't wrong to be wary - last year Litt managed to shake up the board of Taubman rival Macerich.
Wed, Sep. 28, 9:45 AM
- The shopping center operator is boosted to Buy from Neutral at Goldman. The price target is lifted to $87 from $79, suggesting 15% upside from last night's close.
- TCO +1.7% to $76.81.
Thu, Sep. 1, 12:04 PM
Thu, Aug. 11, 9:45 AM
- Macy's is higher by 16% after reporting its Q2 and announcing the closing of 100 full-line stores (out of 675 total).
- The news is sending a shudder through the owners of malls: Simon Property (SPG -1.6%), General Growth (GGP -2.1%), Brixmor (BRX -2.1%), Weingarten Realty (WRI -0.8%), Macerich (MAC -0.7%), Taubman Centers (TCO -0.8%), PREIT (PEI -1.3%).
Thu, Jul. 28, 4:24 PM
Wed, Jul. 27, 5:35 PM
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Tue, Jul. 5, 1:10 PM
- "The mood among landlords was upbeat, as leasing trends have been strong for well-located stabilized assets as well as the REIT-sponsored redevelopment projects we saw," says Citi's Michael Bilerman after visiting with Equity One (NYSE:EQY), Federal Realty (NYSE:FRT), Kimco (NYSE:KIM), Macerich (NYSE:MAC), Regency Centers (NYSE:REG), and Taubman Centers (NYSE:TCO) over three days last week.
- High barriers to entry have resulted in low supply growth and continued densification of existing assets, he says.
- With competition for assets strong and cap rates low, the primary way for REITs to invest on the West Coast has been through redevelopment of existing assets. In general, he says, REITs have been able to achieve solid returns doing this.
Tue, Jun. 14, 9:33 AM
- The dive in the stock price of WP Glimcher (NYSE:WPG) yesterday after it announced it was not in sale talks with Kite Realty (NYSE:KRG) - not to mention the big jump in KRG's price - was telling, writes Shelly Banjo. For one, it shows investors have little faith WPG can turn around its portfolio of nearly 120 strip malls, and second it suggests the deal wouldn't have been a good investment for Kite.
- Over the past year, shares of WPG are lower by 20% vs. a 14% rise for the broader mall REIT sector. WPG now trades at just 6.4x expected FFO vs. an average 16.6x for retail REITs.
- While it's popular to say malls are dying, says Banjo, the reality is one of a bifurcated market - with those exposed to high-end neighborhoods and luxury retailers doing well. Those in poorer neighborhoods exposed to struggling department stores and regional retailers are doing most of the dying.
- Along with WP Glimcher, CBL & Associates (NYSE:CBL), and Wheeler Real Estate (NASDAQ:WHLR) are the worst three performers in Bloomberg's retail REIT index since January 2015.
- Might other suitors await? High-end shops like Simon Property (NYSE:SPG), Taubman (NYSE:TCO), or General Growth (NYSE:GGP) are likely not interested in WPG's assets, and while Brookfield's purchase of Rouse Properties shows some interest in lower-end real estate, Brookfield already owned one-third of Rouse, and Rouse's portfolio was a small one with just three dozen properties.
Wed, Jun. 1, 4:22 PM
- Taubman Centers, Inc. (NYSE:TCO) declares $0.595/share quarterly dividend, in line with previous.
- Forward yield 3.43%
- Payable June 30; for shareholders of record June 15; ex-div June 13.
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