While the rise in online shopping has clearly posed challenges for many retail real estate owners and tenants, it has been an absolute boon for other sectors -- including industrial REITs. Learn more.
Investors are stepping up their investments in REITs that specialize in such sectors as billboards, cold storage facilities and cellphone towers, leading many of these REITs to double-digit FFO growth. "Investors like companies that have developed unique core competencies, which provide a differentiated and sustainable competitive advantage -- regardless of where they play in the real estate spectrum," Phillip Owens of Green Street Advisors says.
Earlier this year, Jim Cramer warned viewers against retail REITs, but he is changing his mind as long-term Treasury note yields pull back and retail REITs make strong efforts to improve their offerings. The facts on the ground have changed, he says now.
REITs are pushing forward initiatives and innovations to continue to bring renewable energy into real estate. "More property owners and building occupiers are realizing the benefits of renewable energy, both in terms of the cost savings it can deliver for customers and the enhanced value for investors," says Matt Singleton of Prologis.
The Trump administration's proposed tariffs on $200 billion worth of goods from China has retailers weighing ordering inventory for the holidays months ahead of schedule. While merchants who order early may avoid higher fees, they also run the risk of sitting on excess inventory that may not be what shoppers want when the holiday season hits, executives and analysts said.
A 36-asset retail portfolio primarily located in The Hague, Amsterdam and Rotterdam in the Netherlands now belongs to W.P. Carey after a $178 million purchase. Intergamma has triple-net leased the 1.5 million-square-foot portfolio.
Robb Lane Ltd. has sold the 73,745-square-foot San Marcos Place in Texas to NAI Investment Fund. The property, which was 80% leased at the time of the sale, features Half Priced Books, Pizza Hut and Plato's Closet.
The Northbrook, Ill., Board of Trustees has approved a sports camp facility to move into Northbrook Court. Owner GGP has planned other, nontraditional projects for the property but has not presented its proposal yet.
Phillips Edison & Co. and Phillips Edison Grocery Center REIT II plan to merge, creating a $6.3 billion grocery-anchored shopping center REIT. The combined entity will have 36.7 million square feet spread among 323 grocery-anchored shopping centers.
A handful of private equity funds, including some managed by Stonepeak Partners and D1 Capital Partners, have acquired a $700 million stake in the cold-storage provider Lineage Logistics, which will use the proceeds in part to continue growing the firm, according to CEO Greg Lehmkuhl. The company also is considering a REIT conversion, a source says.
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