Bloomberg: Retail REITs Have Further to Fall Even After 78% Decline

By: TraderMark Monday, March 16, 2009 10:40 AM

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Speak of the devil (Mar 13: Beginning to Build a REIT Short Portfoli o) we have a nice story front and center on Bloomberg. Any article with Howard Davidowitz in it, makes me smile - even if it's only a passing mention.

To reiterate I am on a go slow approach to building these short positions since the market looks to potentially have more upside to it, which will most likely take associated poor companies with it. I am hoping to this first batch of purchases actually goes bad, which would mean I can build much larger positions at higher prices - hence more profit when the eventual next down leg comes. I will say, however, one of my 13 Outlier Predictions for 2009 (Dec 16, 2008: 13 Outlier 2009 Predictions) is now looking unlikely: I was calling for 5 major retail bankruptcies by Memorial Day and we're running out of time.

There’s little relief in store for investors in U.S. shopping center and mall landlords even after the shares plummeted 78 percent from their February 2007 highs. “REITs are cheap but they’re going to continue to be cheap,” said Marc Halle, managing director of Prudential Real Estate Investors in Parsippany, New Jersey, whose firm manages about $32.5 billion in real estate assets.

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