REITs on the Street: Retail REITs
Clearly consumers are embracing social media such as Facebook
Some have argued that the primary storefront -- the "brick and mortar" model -- is a dying breed. However, consumers are continuing to exploit the evolutionary combination of both e-commerce and "brick and mortar," an experience that complements rather than competes.
During the second quarter all retail REITs that I follow have reported increased occupancy and most have reported increased earnings, as measured by Funds from Operations, or "FFO", a standard REIT metric. Also, most retail REITs have reported increased "Same Store NOI" and that simply means that this metric allows investors to compare net operating income growth from existing properties that have been open for longer than one year.
In the shopping center sector, Kimco Realty
The mall REITs also turned in sound results and two of the top quarterly performers were Simon Property Group
Overall, the retail REITs are continuing to demonstrate very strong operating fundamentals and most are seeing occupancy level improvement, evidence that consumers are embracing the traditional "brick and mortar" model. Next week I will report on the growing Triple Net REIT sector as earnings will be released this week for American Realty Capital Properties
At the time of publication the author had no position in any of the stocks mentioned.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.