Salient to Investors:

  • DJ Busch at Green Street Advisors said the Washington Prime/Glimcher Realty Trust deal may spark further consolidation among owners of “B” malls as there are many benefits to scale.
  • Jerry Bruni at J.V. Bruni said lower-tier malls are a better bargain than pricey luxury properties, and owning the dominant mall in a smaller area insulates you from competition.
  • Jonathan Litt at Land & Buildings said something will break one way or another what with B-mall operators trading at discounts, as we saw with the Glimcher transaction.
  • Rich Moore at RBC Capital Markets said no large mall operator is going to buy operators with lower-quality properties, while B-mall REIT share prices are low and they don’t have the currency to make deals for each other. Moore said the Washington Prime/Glimcher deal was unique because Washington Prime needed a management team, which it gained with the acquisition – it is not a trend.

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