- 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.
For further details see:
Game Stopped For Shorted REITs