The FTSE Nareit All Equity Index total returns rose 2.72% in February, and Nareit EVP of Research and Investor Outreach John Worth notes that lodging and retail both posted strong gains. "[I]nvestors are seeing a light at the end of the tunnel in terms of social distancing risk, improvements in the pace of vaccine rollout and expressing interest in sectors that have had a high social distancing quotient," Worth says.
Tanger Factory Outlet Centers has become one of the most heavily shorted US stocks, FactSet data shows, and its shares surged early yesterday before pulling back. The situation has drawn comparisons to other heavily shorted businesses such as Rocket Companies. "It's today's Rocket," said CNBC's Jim Cramer, who added that he liked the management team at Tanger.
The CMBS delinquency rate dropped 78 basis points to 6.8% last month, marking the biggest improvement since the health crisis began last year, according to Trepp. "This could be a reflection of continued vaccination progress, fiscal stimulus spending, and the strong economic growth we are currently seeing in the first quarter," says Trepp's Catherine Liu.
Los Angeles apartment rents stabilized in February, with average rents at $1,511 for one-bedroom units and $1,982 for two-bedroom units. "Although rent growth was flat, it's worth pointing out that this is the first month since February 2020 where rents in L.A. didn't drop," says Apartment List's Rob Warnock.
Duke Realty recently bought a warehouse in the City of Industry in California for $51.3 million as part of a leaseback transaction with Troy CSL Lighting. The property measures 202,500 square feet and has 32 loading docks.
The pandemic has intensified the health-and-safety focus that has been underway in the warehouse sector and that is coming at a time when companies such as Prologis are pursuing ESG initiatives. This article looks at several elements of building health, including ventilation, cleanliness and automation as a means of social distancing. "Building automation was already a hot point for industrial even before the pandemic," says Jim Clemo of Duke Realty.
Co-branded Dollar Tree and Family Dollar stores could grow to several hundred locations in the coming years as the sister companies look to build on pandemic-fueled momentum to achieve better results in rural communities. Since last July, 47 "combination stores" have opened and Dollar Tree President and CEO Michael Witynski said customer reaction has been positive.
REITs have weathered the pandemic better than they did the Great Financial Crisis, in part because they were able to draw down lines of credit and take other steps to preserve liquidity, according to Gina Szymanski of AEW Capital Management. "Based on our current models, we believe that REITs can provide investors with strong returns over the next two years, stemming from both attractive dividend yields and accelerating cash flow growth," Szymanski says.
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