Mizuho sees muted rent growth for US retail REITs


Against the backdrop of accelerating store closures across the United States, there is an increasing focus on retail REITs across the United States.

According to an equity research report by Mizuho Securities USA, the number of store closures have now surpassed the 2016 figure and is now approaching what was seen during the 2008 - 2009 recession levels.

US Malls and shopping centre REITs returns for the year-to-date are at -12.5% and -17.5% respectively, according to the figures from Mizuho Securities.

However the firm noted that leasing activity in the country remains strong, although rent growth is on the wane, with more REITs paying leasing commissions to brokers to secure leases, and highlighted a NYSE-listed retail REIT that it has upgraded to 'Buy'.

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