SRET - Game Stopped For Shorted REITs

• The short squeeze frenzy - which sent shockwaves through financial markets and the political establishment - has fizzled out over the last week following a dramatic surge from many troubled businesses.
• The five heavily-shorted mall REITs have plunged nearly 30% since the peak of the frenzy, not quite as sharp as their retail tenants GameStop (-85%) and AMC Entertainment (-65%).
• As expected, the beginning of earnings season has been a "reality check" for several of the recent high-flyers. We've heard results from 23 equity REITs thus far including several squeezed REITs.
• Mall REIT Macerich reported a brutal 39% plunge in FFO per share for full-year 2020, fueling a 42% plunge in share price from last week. Same-store NOI growth dipped 33.3% in Q4 from last year.
• Following in the footsteps of AMC Entertainment, several of these troubled mall REITs are seeking to raise much-needed capital while the kettle is still hot, but investors should be wary of being burned.

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