Mall REITs drop in value as more retailers close their doors.
According to reports, the news on the Toys “R” Us bankruptcy this week has sent the share price of mall REITs, such as CBL Properties (CBL), spiraling downward.
CBL Properties is a publicly traded real estate investment trust that invests in retail properties. According to reports, last year 22% of CBL’s square footage included “distressed retailers,” such as Toys R Us.
Shares of CBL closed at $4.36 Monday, “down 55% from a year ago, down 68% from end of August 2016, and down 83% from May 2013,” according to Business Insider.
Last November CBL reportedly announced plans to cut quarterly dividends by nearly 25%. It appears likely that investors will see further dividend cuts. With shares down, the company will likely need to preserve capital.
With the decline of malls and shopping centers and the increase in online shopping, the future for Retail REITs, such as CBL Properties, is not bright.
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