Friday, April 10, 2020

US shopping mall owners face financial reckoning

Boston Business Journal
Some of America’s biggest mall owners are facing a financial reckoning as retailers from Urban Outfitters to Calvin Klein stop paying rent in the coronavirus shutdown.

Capital markets are signalling that some retail landlords are heading for debt restructurings as their properties remain closed for weeks while they grapple with multibillion-dollar liabilities.

Corporate bonds in both CBL & Associates and Washington Prime, which alone have interests in a combined 125m sq ft of retail and mall space, are trading at distressed levels, having sold off heavily in recent weeks. A smaller mall owner, Pennsylvania Reit, said it was applying for relief funds under Washington’s coronavirus support package.. . . more