NEW YORK CITY-All US regional mall REITs have reported third-quarter results, providing average third-quarter FFO growth of 17.7%, which is above the 15.4% average for companies in the remainder of the REIT space that had reported earnings through Nov. 7, according to a new report from SNL Real Estate.
The two largest regional mall REITs, Simon Property Group and General Growth Properties reported FFO growth and operating FFO growth of 11.1% and 26.1%, respectively.
In spite of this outperformance in earnings growth, regional mall REITs are underperforming the broader REIT market year-to-date. The SNL US Regional Mall REIT index provided investors with total returns of negative 0.4% through Nov. 7, compared to 5.7% for all equity REITs and 24.7% for the S&P 500.
The SNL US Regional Mall REIT index traded at an average discount to NAV estimates of negative 2.6% year-to-date through Nov. 7, while the broader SNL US REIT Equity Index traded at an average premium to NAV estimates of 6.2% across the same time period.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
