KeyBanc says there is no playbook for retail REITs, lowers PTs

Retail Opportunity Investments

03/04/2020 19:55

** KeyBanc Capital Markets says outlook for retail landlords
is unclear due to significant uncertainty around collection of
rent payments, as well as the impact of current and future
policy on the industry and its tenants 
    ** Brokerage adjusts retail REIT PTs to account for COVID-19
pandemic; remains "overweight" on Brixmor Property Group
 BRX.N , Retail Properties of America  RPAI.N , and Retail
Opportunity Investments Corp  ROIC.O  and "underweight" on
Macerich  MAC.N   and Tanger Factory Outlet Centers  SKT.N   
    ** There is significant uncertainty around rent payments in
April and the months ahead, for both national and non-national
retailers - KeyBanc 
    ** Brokerage says even if the economy reopens for business
sooner rather than later, tenant sales may remain lackluster and
landlords may be faced with decisions to reset occupancy costs
for some tenants
    ** Brokerage expects closures and non-rent-paying tenants
will impact shopping center and mall REIT portfolios in Q2 and
Q3
    ** SKT, MAC, RPAI, ROIC fall between 1.8% and 10.5%, while
BRX shares rise 2.3%     
    
 Company name                   New PT    Old PT
 Brixmor Property               $13.00     $24
 Macerich                       $4        $21.50
 Retail Opportunity             $11       $20
 Investments                              
 Retail Properties of America   $9        $15
 Tanger Factory Outlet Centers  $3.50     $12
    

 (Reporting by Shreyashi Sanyal in Bengaluru)
 ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961
144 3740; Twitter: https://twitter.com/s_shreyashi;))