Thursday, September 8, 2016

Does Forest City’s Portfolio Pruning Signal Something Deeper?

Despite the challenges of adapting to an omni-channel world, retail REITs seem to be doing fairly well in strengthening the positioning of their malls and shopping centers. In some cases, however, they are pivoting away from the high-risk sector.
On Aug. 23, Cleveland, Ohio-based diversified REIT Forest City Realty Trust announced that it will explore alternative strategies for its regional mall properties. "Our intent is to exit that business to the great extent," Forest City CEO David LaRue said during the company conference call. It is believed that the REIT will invest proceeds from the sale of its malls into office and apartment properties instead.. . . more

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