DJ Investors Shy Away from Top Tier Malls -- Market Talk
10:53 ET - Top-tier malls, or so-called A-malls, appear to be getting a frosty reception from investors after years of being seen as a strong investment that have granted double-digit returns and a safer bet compared to B- malls, or lower-quality peers. Shares of A-mall REITs such as Simon Property, Taubman Centers and Macerich have fallen sharply since September, and institutional investors have also shied away from acquiring higher-quality malls in the private market. There is a sense the process of adapting to changes in consumer behavior and online shopping is still in the early innings and that valuations may take some hits. "Everybody seems to be waiting for one more piece of bad news, that it has bottomed out before coming in," said David Bonser, a partner at law firm Hogan Lovells. "People are not prepared to take the risk." (esther.fung@wsj.com; @estherfung)
(END) Dow Jones Newswires
December 24, 2019 10:54 ET (15:54 GMT)
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