High-quality strip centers well positioned to weather both secular trends and COVID-19 pressure will thrive in the new normal of 2021, according to a new analysis by BTIG Research, which shows that the sector is still trading at a 27% discount to its REIT peer group.
Potential for the sector boils down in part to whether these malls' market performance since November are part of a larger cyclical trend, the report says.
Positive vaccine news in November led strip center REITs to "meaningfully outperform" the REIT sector generally as well as the broader market. But this sector was also outperforming its peer group in pre-pandemic 2020 as investors sought safety in the wake of precipitously declining rent inflow.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
