Despite the carnage, some investors are betting on malls

Stocks of mall owners fell in 2017

TRD MIAMI /
Jun.June 22, 2017 01:15 PM

From TRD New York: 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 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
Seritage CEO Benjamin Schall, CTO CEO John Albright, and 1460 West 49th Street, Hialeah (Credit: Google Maps)

Seritage sells Hialeah shopping center for $21M

Seritage sells Hialeah shopping center for $21M
Southland Mall, 20505 South Dixie Highway in Cutler Bay with JLL's Tom Hall and Danny Finkle (Google Maps, JLL)

Southland Mall’s troubled $65M CMBS loan for sale

Southland Mall’s troubled $65M CMBS loan for sale
From left: Chris Maling, Donald K. DeWoody Jr., David Maling, and Alfredo Sanchez

North Palm Beach mixed-use property hits the market for $45M

North Palm Beach mixed-use property hits the market for $45M
Raanan Katz and 10760 Northwest 17th Street in Sweetwater (Photos via RK Centers; Raanan Katz)

Miami Heat minority owner pays $20M for Sweetwater Best Buy

Miami Heat minority owner pays $20M for Sweetwater Best Buy
Alan Ojeda and 8894 NW 44 Street in Sunrise (Google Maps)

Rilea Group scores $46M construction loan for Sunrise apartments

Rilea Group scores $46M construction loan for Sunrise apartments
Yard 8 and Wood Partners CEO Joseph Keough (Courtesy of ACRE)

Wood Partners lands $86M refi for Midtown Miami apartments

Wood Partners lands $86M refi for Midtown Miami apartments
27359 South Dixie Highway and Longpoint Realty Managing and Founding Partner Dwight Angelini (Google Maps)

Longpoint buys Fresco Y Mas-anchored center in Naranja

Longpoint buys Fresco Y Mas-anchored center in Naranja
Masoud Shojaee and a rendering of Shoma Village 

Shoma Group scores $67M loan for mixed-use Hialeah project

Shoma Group scores $67M loan for mixed-use Hialeah project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...