“S&P Capital IQ has a positive fundamental outlook on the retail REITs sub-industry. Although challenges remain, we think increasing absorption of retail space should present retail landlords with more pricing power. We expect consumer spending and retail sales to improve over the next 12 months, which should prompt a further slowdown in store closings. We still look for same-property revenue and net operating income to be positive across the sub-industry over the next 12 months. Most retail REITs have long-term leases with their customers that possess embedded rent adjustments that should help insulate them from economic fluctuations,” said the research firm.
iShares U.S. Real Estate ETF
Chart Courtesy: Kimble Charting Solutions
ETF Trends editorial team contributed to this post.