With more pandemic shutdowns taking place, malls remain in a precarious position that may only get worse, according to a new report from S&P Global Market Intelligence.
S&P’s Quantamental Research group on Tuesday highlighted seven names: CBL, PREIT, Simon Property Group, Taubman Centers, Brookfield Property REIT, Macerich and Washington Prime Group, according to CNBC.
In determining vulnerability, S&P weighed tenant bankruptcy, foot traffic and cash flow.
More than 11,000 retail locations have announced closures so far this year, totaling nearly 150 million square feet of retail space, according to CoStar.
Shares of Simon, which has a market cap of $34 billion, have dropped 39 percent since January. Still, S&P Global Ratings has maintained an A corporate credit rating on Simon as it is seen to have the strongest balance sheet among its peers.
Brookfield Property, which has a market cap of $15.65 billion, has lost 15 percent from its share price over the same period. Macerich shares are down 55 percent year-over-year, lowering its market cap to $1.9 billion. Washington Prime’s stock price is down 68 percent since January, bringing its market cap to $216 million.
Taubman remains an outlier. The company’s shares are up about 38 percent this year, rising on news that the mall owner is to be acquired by Simon. Taubman has a market cap of $2.65 billion.
[CNBC] — Sasha Jones