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April 17, 2009 – Comments (3) | RELATED TICKERS: SRS , SPG , LRY
Simply put: Jobs loss and shifted oversea won't come back. Addicted US shoppers will spend to the last dime they could from their credit cards.
Until rising credit card delinquency moves the market down, mall REITs are again for shorting.
I dunno CB now that GGP has to unload a good portion of their malls, it should drive rent prices down for tenants as they will have bargaining power....
Tasty, true on your statement but now the banks are pumping up these REITs for them to unload their CRE backed securities at higher price. Corporates have more bargain power than individual retail salers. And relocation of retail salers is no in their favor as their costumers base are local.
true I read about Merril's blatant manipulation of Kimco equity
Well the national retailers were the tenants I was referring to, they are the big money generators for these REITS anyway. I think many of them can just threaten to close stores which they are doing anyway. Any Grocery store anchors should have big effects for if a grocery store leaves a strip mall all the other tenants usuallly require rent reductions to survive. SO the indies cna sometimes get rent reductions.
Just depends on what properties GGP sells and whether the market has priced that in. I don't think they have.
I do agree office REITS escpeailly with exposure to NY and Texas where the crash is just beginning have room to fall.
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