Stores keep closing, some daylight on Fifth Avenue, home sales slow slightly but at record high, looking at net lease REITs, and drugstore vaccine hopes.
In Today’s News
CNBC says the retail research and advisory group predicts as many as 10,000 stores could be closed in the United States this year, which would set a new record, as the pandemic continues to take a toll on the industry and companies rethink how many locations they can sustain.
Why it matters: That’s not a record that investors in retail real estate investment trusts (REITs) and other commercial properties should want to see rise.
The Wall Street Journal [subscription required] says that after a very dark period, the sun is starting to shine again on Manhattan’s famed Fifth Avenue retail corridor.
Why it matters: Well, Fifth Avenue is hardly Main Street, but it’s a start, and the reasons for recovery cited here might inspire some confidence for investors in commercial real estate elsewhere.
Despite dropping slightly in the last month of 2020, the latest pending home sales registered as the highest ever recorded in the month of December, according to the National Association of Realtors (NAR).
Why it matters: The NAR says it’s the fourth straight month of month-over-month decreases but that it’s not demand that’s causing the deceleration, it’s supply. Nationally, the market is still pretty hot — a resilient spot in an otherwise troubled economy.
Today on Millionacres
Net lease is generally considered a conservative niche in the sector. However, every company is different, a fact highlighted by the disparate performance of industry heavyweights National Retail Properties (NYSE: NNN) and W.P. Carey (NYSE: WPC).
Why it matters: Millionacres’ Reuben Gregg Brewer provides a look at how you, too, can compare similar REITs’ portfolios and performance. Because we’re here to help.
Amazon (NASDAQ: AMZN) is now entering the mail-order pharmaceutical business, and that could add more stress to the brick-and-mortar businesses that count on you to buy more than drugs at the drugstore. But, wait…
Why it matters: Millionacres’ Maurie Backman points out that vaccinations have to be in person, of course, and that the growing possibility that boosters could be required every year just adds to the possibility that Walgreens (NASDAQ: WBA) and CVS (NYSE: CVS), fixtures in many a portfolio, could benefit from some added foot traffic going forward.
The Motley Fool has a disclosure policy. Editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from Millionacres is separate from The Motley Fool editorial content and is created by a different analyst team.
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