STIFEL: Rtl REIT - Retail REIT Comp Sheets 10/10/16

in ,

FULL REPORT

Retail REIT Comp Sheets 10/10/16

REITs had a tough start in October, down 5.3% last week. REITs are up 6.0% YTD. Retail REITs are underperforming the REIT index YTD, up 4.3%, as regional malls are up 2.3% and shopping centers are up 7.4%.
The REIT sector is trading at a 4.2% discount to NAV. Regional malls are attractively priced to the REIT sector, in our view, trading at an 18.3% discount to NAV while shopping centers are trading at a 3.6% discount to NAV.

 

  • Tanger Factory Outlet Centers (SKT, $36.75, Hold) sold an additional $100 million of its 3.125% 10-year notes. SKT completed the initial $250 million note offering in August 2016. The additional $100 million of proceeds will be used to pay down borrowings on its lines of credit after paying off the $96.9 million mortgage on Savannah in late September. SKT acquired its partner’s 50% interest in Savannah in August for $111.9 million - $15 million in cash and the assumption of the $96.9 million mortgage.

 

  • SKT broke ground on its new outlet center development in Fort Worth, TX, adjacent to the Texas Motor Speedway. The 350k sf center is over 60% pre-leased and SKT is planning for a 2017 holiday opening. SKT acquired the land for $11.2 million.

 

  • Washington Prime Group (WPG, $11.55, NC) named Lou Conforti as CEO. Mr. Conforti has served as interim CEO since June 2016. Prior to joining WPG, Mr. Conforti was the executive director and global head of strategy at Colony Capital, served as the global head of real estate for UBS O’Connor, and head of real estate investments at Stark Investments.

 

  • Fitch affirmed DDR’s (DDR, $16.40, NC) credit rating of BBB- with a stable outlook. Fitch noted the improvement in quality in DDR’s real estate, management’s focus on streamlining the business, continued capital recycling activity, and high quality tenant base.

 

  • Fitch affirmed Federal Realty’s (FRT, $145.20, Hold) credit rating of A- with a stable outlook. Fitch noted the consistent and steady cash flow generated by FRT’s portfolio, prudent capital allocation, and redevelopment and mixed-use development opportunities within the portfolio.

 

Pricing as of 10/7/16 close.