Mall REITs: Stocking Stuffers Or Stocking Suckers?

Many of the mall REITs, from where they stand, are doing what they can, with the capital they’re provided, to keep the ultimate shopping experience exciting. Heading into the all-important holiday shopping season, the winners will rise to the top.

Summary

  • In recent days, a few red flags have hinted that mall REITs in particular might have more hurdles to jump in the coming weeks than none.
  • Heading into the all-important holiday shopping season, the winners will rise to the top.
  • When do you think Sears will file?

We’re in the midst of earnings season, the holidays are approaching, and I find myself thinking, “Here we go again.” Let me explain.

Mall operators, and their retail tenants, are facing increasing scrutiny - climbing at a rapid clip - with the rise of e-commerce players like Amazon (NASDAQ:AMZN), nontraditional retailing and news of stalled store growth, among other reasons.

Results from the upcoming holidays - a look at traffic and sales trends - will offer us key insights into what’s really going on within the industry. But for now, we have no better option than to wait and watch it transpire. And I’m holding my breath.

In recent days, a few red flags have hinted that mall REITs in particular might have more hurdles to jump in the coming weeks than none.

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