tyb
I'll drink to that
https://www.secform4.com/
KMI continues to add shares in that sector
Retail defaults soar 5,994 Stores Already Closed In 2019, Blowing Past 2018's Full Year Total
(edit of title)
2018 ended on an optimistic note for retailers with strong consumer spending “data” and what was widely considered to be an unexpected comeback for many brick and mortar stores. While that may have been fun while it lasted, the carnage and pressure on the retail sector has once again been ramped backed up, resulting in a breakneck pace for store closings to start 2019.
In a start to the year that can only be described as absolutely demoralizing for the industry, 5,994 stores have closed in the US so far this year, which is already more than last year‘s total of 5,864, according to Real Deal and WSJ. And retail sales have begun falling again recently, down 0.2% in February from a month earlier, after being up 0.7% in January. Retail sales fell 1.2% in December.
Mall vacancy rates ticked up in the first quarter to 9.3% from 9% in the fourth quarter of 2018.
S&P still has a negative outlook on the United States retail sector overall and predicts that roughly 12 of the 136 retailers that it rates will wind up defaulting this year. This is an astonishing four times the average annual rate.
And as retailers continue to struggle, mall owners are also facing financial difficulties. Some malls have even pushed back their opening dates. For instance, the opening of the American Dream retail and entertainment center in the Meadowlands in New Jersey, which was originally supposed to open in the spring, has already been pushed back to late summer. The Empire Outlets shopping center on Staten Island is now scheduled to open in May, after it was initially planned to open last fall.
Finally, one of the country’s largest malls, Destiny USA in Syracuse, recently saw its mortgage taken over by a special servicer. And even though the mall owner, Pyramid Management Group, says that it is trying to discuss an extension, the servicer is expecting a default from the owner in June.
Just four months into 2019, we have already seen bankruptcies or store closings from companies like Payless Shoesource, Gymboree and Charlotte Russe.
UBS has estimated that another 75,000 stores will have to close by 2026 if online retail continues to rise from its current 16% market penetration to its expected 25%.
We documented in early March when major chains such as Gap, JCPenney, Victoria's Secret and Foot Locker all announced massive closures, totaling more than 465 stores over the course of just 48 hours. Back in February, we noted that default rates on retail junk bonds had risen to 10.2% as of December, according to Fitch Ratings, more than double the level from the same period in 2017.
https://www.zerohedge.com/news/2019-04-18/shopocalypse-now-5994-stores-already-closed-2019-blowing-past-2018s-full-year-total
(been many REIT's who have sold share's-not above the 9% threshold but enough to attract some attention)
What Is a Real Estate Investment Trust?
REITs (real estate investment trusts) were established by Congress in 1960 as an amendment to the Cigar Excise Tax Extension of 1960. They allow individual investors to buy shares in commercial real estate portfolios that receive income from a variety of properties, including apartment complexes, data centers, healthcare facilities, hotels, infrastructure (e.g., fiber cables, cell towers, and energy pipelines), office buildings, retail centers, self-storage, timberland, and warehouses.
Most REITs specialize in a specific real estate sector—office buildings, healthcare, residential, retail—but diversified and specialty REITs often hold different types of properties in their portfolios.
https://www.investopedia.com/terms/r/reit.asp
Contrast with this
US Retail Sales Surge Most Since 2017
(this has much to do with how this data is captured and what they exclude/include from the overall number's reported.)
Having re-slumped in February, after bounding back from December's plunge, US Retail Sales were expected to rebound solidly in March (as analysts projected auto sales and a bounce in gas prices would help) and it did.
Headline retail sales rose 1.6% MoM in March (crushing the 1.0% expected) - the strongest monthly surge since Sept 2017.
Under the hood, every single category rose in April except sporting goods, hobby, and book stores.
Core retail sales (ex autos and gas stations) rebounded notably in March after it plunged in February.
Everything is awesome again - like it was in January, remember?
https://www.zerohedge.com/news/2019-04-18/us-retail-rebounds-march-autos-gas-sales-surge