REITs keep it classy — Class A, that is

By continuing to sell off lower-tier properties, real estate investment trusts are trying to stay on the right side of the shifting landscape
By Donna M. Airoldi | May 25, 2017 10:30AM

Adding entertainment, like the ice rink at Simon’s Galleria in Houston, is one way malls are attracting customers.

From the retail issue: Retail real estate investment trusts have taken a beating since the end of last summer, with many of the major players posting double-digit drops in stock prices as several retailers announced store closings. However, despite the continuing influx of grim news — including Sears’ announcement that it had “substantial doubt” it could survive — several retail REITs have recently begun to recover, and some analysts say they could even be undervalued.

“They have been underperforming the S&P 500, but there’s still opportunity,” said Calvin Schnure, a senior vice president at the National Association of Real Estate Investment Trusts (NAREIT). “REITs are in prime locations and can find new, good tenants. The fundamentals remain strong in the sector.” [more]