Real estate investment trusts that own retail properties across the US faced selling pressure on Thursday amid mounting woes for major department stores.
The S&P 500 retail Reits index declined by 2.47 per cent in midday trading. All of the seven groups listed on the index were down on the day.
Investor sentiment towards retail soured after a trio of big names, Macy’s, Kohl’s and Dillard’s, all disclosed another quarter of heavy falls in like-for-like sales.
Simon Property Group, the biggest retail Reit that is known for its upscale shopping centres, skidded 2.83 per cent on Thursday. GGP, another large mall operator, dropped 2 per cent.
Thursday’s fall deepens this year’s slide for the retail Reits index to 10.4 per cent, according to Reuters data. It has fallen by 20.5 per cent over the past 12 months. That compares with a year-to-date gain of 1.8 per cent, and a 12-month fall of 2.2 per cent for the broader S&P 500 Reits group.