Published Wed, 09 Oct 2019 08:35:00 -0400 on Seeking Alpha
Co-produced with Beyond Saving and PendragonY
We are providing an update on Macerich Company (MAC), a mall REIT that we hold in our Core Portfolio. Included in this report is an update on Forever 21's impact on MAC. We continue to be very bullish on MAC.
Our goal is to find opportunities in the market where we can achieve a high current yield while managing the level of risk we take. Many investors see a high-yield and automatically assume an investment is high-risk. That frequently is not the case.
Today we look at a REIT in the troubled mall REIT sector. Malls are going through a fundamental change as struggling retailers have gone through bankruptcy and liquidated. This has created a glut of space that has to be filled with new tenants - a process that is neither immediate nor free.
The REIT we are looking at today has seen their dividend yield increase due to dividend raises, combined with a dramatic decrease in their share price. Despite a falling share price, their fundamentals are among the strongest in the sector. Rent has increased every year for over 10 years, tenant sales are at all-time highs and their occupancy rate is over 94%.
The "bad" news - to the extent that it's bad (or news) that Sears (OTCPK: SHLDQ) and other failing retailers are closing - is already known and has already been reflected in results. Fundamentals have been improving despite these well-known headwinds. Yet Mr. Market has punished this company anyway for little reason other than... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|PENNSYLVANIA REAL ESTATE INVESTMENT TRUST||5.68||0.0||-1.81||0.84||14.58|
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