RISING CAPS

PricewaterhouseCoopers' latest Korpacz Real Estate Investor Survey revealed that cap rates continue to creep upward on all property types. Here are the latest stats on the retail sector.

CAP RATE TRENDS
REGIONAL MALLS CURRENT QUARTER LAST QUARTER YEAR AGO
Discount Rate Average
Change (basis points)
9.02% 8.73%
29
8.53%
49
Overall Cap Rate Average
Change (basis points)
6.96% 6.78%
18
6.68%
28
Residual Cap Rate Average
Change (basis points)
7.53% 7.38%
15
7.94%
-41
POWER CENTERS CURRENT QUARTER LAST QUARTER YEAR AGO
Discount Rate Average
Change (basis points)
8.95% 8.39%
56
8.23%
72
Overall Cap Rate Average
Change (basis points)
7.57% 7.17%
40
7.13%
44
Residual Cap Rate Average
Change (basis points)
8.20% 7.73%
47
7.45%
75
STRIP SHOPPING CENTERS CURRENT QUARTER LAST QUARTER YEAR AGO
Discount Rate Average
Change (basis points)
8.49% 8.39%
10
8.34%
15
Overall Cap Rate Average
Change (basis points)
7.49% 7.33%
15
7.24%
25
Residual Cap Rate Average
Change (basis points)
7.82% 7.89%
-7
7.75%
7
Source: PricewaterhouseCoopers

HALF EMPTY OR HALF FULL?

Retail REITs have rebounded from recent 52-week lows. However, 2009 has gotten off to a rocky start and most firms are down from 2008 year-end levels.

RETAIL REIT SCORECARD
Symbol Price* 52-week High Chg 52-week Low Chg Dec. 31, 2008 YTD Chg
Developers Diversified Realty DDR $5.07 $45.66 -88.90% $1.73 193.06% $4.88 3.89%
CapLease LSE 1.71 10.39 -83.54 1.40 22.14 1.73 -1.16
Colonial Properties Trust CLP 8.06 27.44 -70.63 3.43 134.99 8.33 -3.24
Urstadt Biddle Properties UBA 15.12 20.50 -26.24 12.11 24.86 15.93 -5.08
Cedar Shopping Centers CDR 6.47 14.02 -53.85 3.66 76.78 7.08 -8.62
Macerich MAC 16.07 76.50 -78.99 8.31 93.38 18.16 -11.51
Glimcher Realty Trust GRT 2.48 14.28 -82.63 0.75 230.67 2.81 -11.74
Kite Realty Group KRG 4.88 15.52 -68.56 1.94 151.55 5.56 -12.23
National Retail Properties NNN 14.92 25.30 -41.03 10.03 48.75 17.19 -13.21
Kimco Realty KIM 15.61 47.80 -67.34 9.56 63.28 18.28 -14.61
Agree Realty ADC 15.45 31.04 -50.23 8.35 85.03 18.13 -14.78
Saul Centers BFS 33.65 55.71 -39.60 22.30 50.90 39.50 -14.81
Taubman Centers TCO 21.68 61.52 -64.76 17.47 24.10 25.46 -14.85
Vornado Realty Trust VNO 51.20 108.15 -52.66 36.66 39.66 60.35 -15.16
Realty Income O 19.52 34.86 -44.00 15.00 30.13 23.15 -15.68
Simon Property Group SPG 44.74 106.43 -57.96 33.78 32.45 53.13 -15.79
Tanger Factory Outlet Centers SKT 31.55 46.30 -31.86 24.62 28.15 37.62 -16.14
Weingarten Realty Investors WRI 17.31 40.00 -56.73 8.27 109.31 20.69 -16.34
General Growth Properties GGP 1.07 44.23 -97.58 0.24 345.83 1.29 -17.05
Acadia Realty Trust AKR 11.77 26.78 -56.05 9.04 30.20 14.27 -17.52
Ramco-Gershenson Properties Trust RPT 4.98 24.28 -79.49 3.45 44.35 6.18 -19.42
Federal Realty Investment Trust FRT 49.92 95.00 -47.45 43.46 14.86 62.08 -19.59
Regency Centers REG 37.18 82.43 -54.90 23.36 59.16 46.70 -20.39
Inland Real Estate IRC 10.28 16.97 -39.42 8.20 25.37 12.98 -20.80
Equity One EQY 13.93 26.69 -47.81 9.58 45.4 17.70 -21.30
Cousins Properties CUZ 10.64 29.28 -63.66 8.05 32.17 13.85 -23.18
CBL & Associates Properties CBL 4.95 27.55 -82.03 2.53 95.65 6.50 -23.85
PREIT PEI 5.56 28.37 -80.40 2.21 151.58 7.45 -25.37
* As 1/23/2009; Bold indicates new 52-week highs and lows. Source: Retail Traffic