Adam Samson in the FT reports that retail REITs in the US have continued to experience very poor recent performance.
The current decline deepens the fall for retail Reits over the past 12 months to 23 per cent, compared with a 3 per cent drop for the wider Reits industry. The broader market has risen 16.2 per cent over the past year.
US REITs in general have been performing badly with retail REITs probably causing most of the decline. The US retail market is quite different to the UK – the main issue is that they have a lot more shopping space per person over there – but it’s still a pretty dramatic decline. It doesn’t chime with the National Association of Realtors in the US who been forecasting largely stable vacancy rates in the retail sector. No sign of contagion to the UK yet, the share price of Intu remains roughly in the same place as it was three months ago.
In a worrying note, the FT article also reported that Andrew Baum, the widely-followed Citi analyst, downgraded the pharmaceuticals group Pfizer from “neutral” to “sell”. Unless the Proptech guy has also got into viagra in a big way, there must be two of them. Wait – there’s also the famous singing Austrian Andy Baum. This is scary stuff. He’s everywhere.