SITC - Retail Value: A Hidden REIT Recovery Opportunity At A Steep Discount
- With COVID expected to end due to the coming vaccine, a "recovery trade" opportunity has arisen in stocks that have not yet recovered from Q1-Q2 losses.
- The retail REIT RVI has lost over half of its value this year as investors fear it will not be able to sell its properties at an acceptable valuation.
- RVI appears to be trading well below its net asset value, even using extremely high capitalization rates of 10-12% with a depressed NOI.
- Net asset value estimates place the company's fair value at a range between $250M and $500M. It is currently trading near the bottom of that range.
- Retail Value is still able to make an 8%+ dividend yield even with COVID impacting the company's profitability.
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Retail Value: A Hidden REIT Recovery Opportunity At A Steep Discount