Retail REITs have been punished in spite of the fact that they tend to own higher-quality assets, while it’s lower-quality malls and shopping centers that tend to be hit hardest by challenges like e-commerce, Brad Case, senior vice president of research and industry information with NAREIT says.
“I think regional malls and shopping centers are due for a good year this year,” says Matt Werner, managing director and portfolio manager at Houston-based investment advisory firm Chilton Capital Management LLC, citing the potential for stepped-up mergers and acquisitions activity. By and large, REIT stocks are undervalued, Case says, and stock prices are lower than they should be based on the strength of the industry.. . . more