The U.S. Retail sector just enjoyed its best holiday shopping season in six years, with sales up a whopping 5.1% year-over-year. However, many publicly-traded retail landlords continue to trade at deep discounts to NAV. While the flattening yield curve and increasing macroeconomic turbulence and uncertainty indicate that a flight to quality investments is prudent, the stark contrast between price and performance in the Retail real estate sector means that we can still find incredible bargains among the quality retail landlords.
The two retail REITs that I believe offer the best risk-reward profile right now are