NOT IN MY BACKYARD

Saint Consulting Group published their latest Saint Index, which measures the public's attitude toward development in Britain, Canada and the United States. Here are some highlights from this year's survey.

U.S. CANADA BRITAIN
Approve of local authorities' handling of planning issues: 66% 66% 62%
Oppose new development in their community: 73% 75% 83%
Have a perception of “cozy relationships” between developers and elected officials: 75% 60% 58%
Like shopping in big boxes… 6 of 10 say yes 6 of 10 say yes
But don't want one in their community. 7 of 10 say no 6 of 10 say no
Source: Saint Consulting

HITTING A POTHOLE

Suddenly retail REITs haven't been doing so hot. Most are off 52-week highs and all but four retail REITs were down for the year as of late June. Still, every retail REIT is trading above its 52-week high.

RETAIL REIT STOCK PRICE TRENDS
Symbol Price* 52-week High Chg 52-week Low Chg 31-Dec-06 YTD Chg
PREIT PEI $43.97 $50.39 -12.74% $37.48 17.32% $39.38 11.66%
Acadia Realty Trust AKR 26.69 28.75 -7.17 21.92 21.76 25.02 6.67
Kite Realty Group KRG 19.10 21.80 -12.39 14.13 35.17 18.62 2.58
General Growth Properties GGP 52.75 67.43 -21.77 42.56 23.94 52.23 1.00
Equity One Inc. EQY 26.46 29.51 -10.34 20.25 30.67 26.66 -0.75
Taubman Centers TCO 50.15 63.87 -21.48 36.69 36.69 50.86 -1.40
Glimcher Realty Trust GRT 25.73 29.69 -13.34 23.08 11.48 26.71 -3.67
The Macerich Co. MAC 83.10 103.59 -19.78 67.90 22.39 86.57 -4.01
Capital Lease Funding LSE 11.13 12.21 -8.85 10.16 9.55 11.60 -4.05
Tanger Factory Outlet Centers SKT 37.42 43.56 -14.10 30.30 23.50 39.08 -4.25
Ramco-Gershenson Properties Trust RPT 35.83 39.55 -9.41 26.17 36.91 38.14 -6.06
Agree Realty Corp. ADC 32.23 36.46 -11.60 31.14 3.50 34.37 -6.23
Simon Property Group SPG 94.95 123.96 -23.40 79.07 20.08 101.29 -6.26
Realty Income Corp. O 25.33 30.36 -16.57 21.25 19.20 27.70 -8.56
Inland Real Estate Corp. IRC 17.01 21.14 -19.54 13.83 22.99 18.72 -9.13
Federal Realty Investment Trust FRT 76.84 98.92 -22.32 66.05 16.34 85.00 -9.60
Weingarten Realty Investors WRI 41.39 52.30 -20.86 37.06 11.68 46.11 -10.24
Urstadt Biddle Properties Inc. UBA 17.13 19.73 -13.18 14.62 17.17 19.09 -10.27
Regency Centers Corp. REG 70.10 93.49 -25.02 59.18 18.45 78.17 -10.32
Feldman Mall Properties FMP 11.14 13.00 -14.31 10.10 10.30 12.45 -10.52
Vornado Realty Trust VNO 109.23 136.55 -20.01 93.53 16.79 122.35 -10.72
Cedar Shopping Centers Inc. CDR 14.18 18.42 -23.02 13.84 2.46 15.91 -10.87
Kimco Realty Corp. KIM 39.17 53.60 -26.92 35.07 11.69 44.95 -12.86
CBL & Associates Properties CBL 36.80 50.36 -26.93 36.06 2.05 43.35 -15.11
Developers Diversified Realty Corp. DDR 52.11 72.33 -27.96 49.27 5.76 62.95 -17.22
Cousins Properties Inc. CUZ 29.16 40.75 -28.44 28.62 1.89 35.27 -17.32
Saul Centers BFS 45.12 61.70 -26.87 36.74 22.81 55.19 -18.25
Colonial Properties Trust CLP 36.05 51.69 -30.26 35.36 1.95 46.88 -23.10
* As of 6/22/2007
Source: Retail Traffic research

MARKETS TO WATCH: U.S. VERSION

Sperry Van Ness released the retail edition of its annual Top 10 Markets to Watch Report, examining economic factors that impact future investment in retail real estate. Here are its findings with some of the top reasons they were selected from a pool of more than 60 primary, secondary and tertiary markets.

MARKET KEY PLUSSES
Albuquerque, N.M. Projected 1.63 percent increase in population and job growth of 2.2 percent in 2007.
Charleston, S.C. A 5.36 percent increase in household income and a 1.63 increase in population in 2007.
Dallas/Ft. Worth Expected to see 1.2 million square feet of absorption, 1.4 million square feet of retail construction completions and a nearly $0.40 per square foot per year effective rent increase.
Houston Has identical metrics as Dallas, with projected 1.2 million square feet of absorption, 1.4 million square feet of retail construction completions and a nearly $0.40 per square foot per year effective rent increase.
Las Vegas With 72,000 new residents expected in 2007, Las Vegas has the most impressive population increase of any of the top markets.
Phoenix Projected 1.89 million square feet of new retail space expected to be completed and 1.59 million square feet expected to be absorbed.
Raleigh/Durham, N.C. Per capita income is expected to increase 6 percent for the next few years. Landlords are expected to be able to achieve effective rent increases of 3.1 percent in 2007.
Salt Lake City Significant population growth has prompted redevelopment and repositioning of retail centers of all sizes.
Tucson, Ariz. At 7.49 percent, Tucson has the largest household income increase in the markets.
West Palm Beach, Fla. Enjoys stronger fundamental gains over national averages highlighted by annual household income projected to grow to more than $131,000.
Source: Sperry Van Ness

MARKETS TO WATCH: INTERNATIONAL VERSION

AT Kearney released its updated Global Retail Development Index, which it calculates by weighing four variables: country risk, market attractiveness, market saturation and time pressure. India and Russia remained the top two markets. China jumped from 5th to 3rd and Malaysia jumped from 14th into the top 10. The biggest drops were suffered by former Soviet bloc nations like Slovenia and Croatia.

2007 GLOBAL RETAIL DEVELOPMENT INDEX
Country GRDI Score 2007 Rank 2006 Rank Change
India 92 1 1 0
Russia 89 2 2 0
China 86 3 5 2
Vietnam 74 4 3 -1
Ukraine 69 5 4 -1
Chile 69 6 6 6
Latvia 68 7 7 0
Malaysia 68 8 14 6
Mexico 64 9 19 10
Saudia Arabia 64 10 17 7
Tunisia 64 11 11 0
Bulgaria 63 12 21 9
Turkey 62 13 10 -3
Egypt 61 14 20 6
Morocco 60 15 28 13
Thailand 59 16 12 -4
Slovenia 58 17 8 -9
United Arab Emirates 57 18 16 -2
Croatia 56 19 9 -10
Brazil 56 20 27 7
Uruguay 56 21 N/A N/A
Peru 55 22 N/A N/A
Philippines 54 23 N/A N/A
Indonesia 52 24 N/A N/A
Algeria 51 25 N/A N/A
Hungary 51 26 23 -3
Romania 50 27 22 -5
Lithuania 50 28 26 -2
Argentina 50 29 N/A N/A
Colombia 47 30 29 -1
Source: AT Kearney