ROIC - Essential REIT Evaluation: Retail

• Regional malls, outlet centers, and shopping centers are suffering from rising vacancies and declining rents due to the transition to e-commerce, government lock-downs, and recession.
• We dramatically trimmed our exposure to retail REITs over the past two years as we began to understand the significant capital expenditures necessary to maintain occupancy.
• With uncertainty nearing all-time highs, we believe the best risk-adjusted returns will be available in the grocery-anchored shopping center space.
• However, most shopping center REITs have diversified portfolios containing many non-grocery-anchored centers, making it difficult to isolate this theme in the portfolio.

For further details see: