Regional Mall REITs Trade at Largest Discount to NAV

Retail REITs continue to be challenged, with the regional mall sector and shopping center sector trading at discounts of 30.7 percent and 15.2 percent, respectively, according to S&P Global Market Intelligence data.

Premium_NAVAs of Dec. 1, publicly-traded U.S. equity REITs traded at a median discount to consensus net asset value of 3.5 percent.

The manufactured homes sector traded at the largest median premium to NAV, at 12.4 percent. The self-storage and health care REIT sectors followed next, trading at median premiums to NAV of 9.5 percent and 6.6 percent, respectively.

On the other hand, trading at the greatest median discount to NAV, at 30.7 percent, was the regional mall REIT sector. The shopping center REIT sector also had a notable 15.2 percent median discount to NAV as of Dec. 1.

At the company level, health care REIT Community Healthcare Trust Inc. traded at the greatest premium to NAV, at 43.3 percent. Right behind were self-storage REIT National Storage Affiliates Trust and fellow health care REIT CareTrust REIT Inc. which traded at premiums of 30.7 percent and 29.4 percent, respectively.

On the retail side, CBL Properties traded at the largest discount of all U.S. REITs, at 65.3 precent. Another regional mall REIT, Washington Prime Group Inc., and office REIT New York REIT Inc. were next on the list with large discounts of 48.0 percent and 46.6 percent, respectively.

Khamile Armhynn Sabas is an associate in the real estate product operations department of S&P Global Market Intelligence.