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.
| 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.
| 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 | |||||||
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