Despite the carnage, some investors are betting on malls

Stocks of mall owners fell in 2017

TRD New York /
Jun.June 22, 2017 12:41 PM

Rendering of the American Dream mall in NJ and Salient’s Joel Beam

Malls are doomed. But are they?

Some investors are buying up retail real estate investment trust stocks, betting that market bears are getting ahead of themselves and that share prices are undervalued. “We believe the stocks have come down to fair value for the risk that we’re taking,” Joel Beam, of asset manager Salient Partners, told the Wall Street Journal.

Salient recently bought shares in mall owner CBL & Associates Properties, whose stock price has fallen by 27 percent this year. On average, the shares of retail REITs are down 15.6 percent this year. Malls and department stores in New York City and across the country are struggling with the rise of online retail, but not everyone is buying into the pessimism.

“This is one of the most attractive investment opportunities these days,” said Matthew Werner of Chilton Capital Management, which recently bought shares in retail REITs like Simon Property Group. “Class A malls are one of the most profitable distribution centers for retailers.” [WSJ]Konrad Putzier


Related Articles

arrow_forward_ios

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Joel Schreiber (Credit: Shir Stein and Wikipedia)

WeWork’s first investor used his stock as collateral. Now his lenders are suing him

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

For mall owners like Simon, Brookfield and Vornado, Forever 21 bankruptcy signals more trouble ahead

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

163 North 6th Street and the Tel Aviv Stock Exchange Bull (Credit: Google Maps, Wikipedia)

Joel Gluck’s Israeli bond issuance falls through as Williamsburg rental project faces financing crunch

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

arrow_forward_ios