No. of Recommendations: 6
JCP has, indeed, been having problems. The new "everyday low price strategy," along with the concept of stores within stores, has been very slow to catch on. There's been a lot written about this, so I won't get into it.

I think the key point for REIT investors, particularly mall REIT investors, is where Penny stores are located. If they decide to close some stores, they will most likely be in the less productive malls, and the REITs that own those may have problems backfilling the vacated space.

Thus investors in CBL and PEI should have more to worry about than investors in GGP, MAC, SPG and especially TCO. Indeed, some store closings may provide a REIT with the opportunity to find a better and more productive tenant, as has been the case on many prior occasions.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.