Our REITs report includes an interview with David Wigginton of Macquarie Capital (USA), Inc. he gave us his take on the sector:
“REITs sometimes get unfairly grouped with the overall commercial real estate industry. While they are commercial real estate owners and operators, unlike a lot of the smaller, private operators, they are much better capitalized, they have greater access to capital and typically own the better properties in the markets in which they operate. I’m speaking from a retail perspective only here. I think you can say there are signs of life, but they are faint. When looking at property fundamentals, vacancy rates are increasing and rental rate growth is declining. In addition, you’re facing macro headwinds in the form of high unemployment rates, declining consumer spending, negative consumer sentiment and stagnating wages in general. The federal stimulus package helped prop things up a little bit, but it’s still hard to get a clear read on what the run rate will be going forward.”
Mr. Wigginston breaks his coverage into two areas mall REITs and strip center REITs and has some top picks for each section but you will have to read that on our TWITTER
Phil Skolnick Sees 50% Strip Pricing Cash Flow Margins for Oil Producers for First Time
February 11, 2022
Simon (NYSE:SPG) and Macerich (NYSE:MAC): REIT Investors Skip the Office and Go the Mall
April 14, 2024
Robert Gutman at Guggenheim Securities Calls for Shift from Retail to Data Center REITs and Capture the Growth Upside
July 17, 2017
Networking Side of Data Center REITs Offers Growth
February 28, 2012
