Despite the carnage, some investors are betting on malls

Stocks of mall owners fell in 2017

Jun.June 22, 2017 01:15 PM

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

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

From left: Avra Jain, Scott Sherman, Josh Migdal, Tony Arellano, Devlin Marinoff and Jason Kellogg

“A landlord waiving rent and not getting anything in return is just not a reality:” experts sound off on pandemic’s effect on South Florida’s retail market

Shoma Group CEO Masoud Shojaee and a rendering of Ten30 South Beach

Shoma nabs $18M construction loan for condos near Lincoln Road

Mayor, Miami-Dade County, Carlos A. Giménez (Credit: Ryan Holloway/ Armando Rodriguez Miami-Dade County Photographers)

Miami-Dade orders all non-essential businesses closed due to coronavirus

From left: Scott Sherman, Scott Sandelin, Felix Bendersky and Niesen Kasdin

SoFla landlords, retailers brace for coronavirus impacts

Rendering of Doral Square and David Martin

Terra boosts loan for Doral Square retail project by $19M

Alain and Gerard Wertheimer with the Chanel space on 41st Street (Credit: Chanel, Julien Hekimian/WireImage/Getty Images, and Google Maps)

Chanel to open store in Miami Design District

Rendering of Wynwood 28 and Laurent Morali 

Kushner lands $18M loan for Wynwood projects

From left: 663 to 667 Lincoln Road, Joe Sitt, Tony Arellano and Devin Marinoff (Credit: DWNTWN REALTY ADVISORS)

Thor Equities lists Lincoln Road building for $17.5M