BPYUP - Mall REITs: Too Little Too Late

• Pushed to the brink by the pandemic, Mall REITs entered 2020 on unstable footing following a tsunami of store closings over the past decade, and the forthcoming vaccines may be too-little-too-late.
• Despite improving rent collection and foot traffic, earnings reports revealed that Q3 was another epically-bad quarter with same-store Net Operating Income plunging over 20% and occupancy rates in free fall.
• It's the end of the road for some: Troubled mall REITs Pennsylvania REIT and CBL & Associates each filed for bankruptcy this month while Washington Prime likely isn't far behind.
• "Black Swan Times Three." Retail real estate legend David Simon provided some grim commentary on the state of the mall sector, commenting that it's "sad to see what's happened to a good solid business."
• While the lower-tier of the sector is getting hollowed out, the forthcoming post-pandemic "suburban revival" offers a glimmer of hope for the higher-productivity mall REITs, including Simon Property and Brookfield Property.

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