REITBull

Ackman Explains Why He's Short REIT Realty Income

Ackman may be trying to play the decline in the lower end of CRE. According to their 10K, Realty Income has "average leasable retail space per property of approximately 8,130 square feet". There seems to be an abundance of small box CRE property on the market. This should put pricing pressure on their rents for the foreseeable future. Also the smaller box tenants tend to have less credit availability.