The retail REIT Q3 earnings season kicks off on Tuesday, and shareholders are hoping for some strong numbers following a rough couple of months for REITs. Goldman Sachs analyst Andrew Rosivach said the firm will be watching re-leasing spreads and management commentary this quarter.
Goldman will be looking for any contraction in re-leasing spreads. Rosivach will be particularly interested in seeing if store closures by Macy’s Inc
Re-leasing spreads in the 8–10 percent range allow opportunity for 4–5 percent EBTDA growth from REITs, but tighter spreads could spell trouble.
“During earnings we will look for companies’ commentary on the extent to which they believe they will be impacted by department store closures over the next year, and their perceived demand for that space,” Rosivach noted.
Goldman also expects commentary from Simon Property Group Inc
Finally, Rosivach added that Goldman will be watching Buy-rated Taubman Centers, Inc.
Retail REIT earnings season kicks off on Tuesday when Tanger Factory Outlet Centers Inc.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email
|Aug 2016||BTIG Research||Initiates Coverage on||Buy|
|Aug 2016||Deutsche Bank||Maintains||Buy|
|Aug 2016||Argus Research||Maintains||Buy|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.