Retail REITs ICSC LAS VEGAS Rundown: Positive Messaging on Core Ops Continues, but More Investment Discussions

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Retail REITs ICSC LAS VEGAS Rundown: Positive Messaging on Core Ops Continues, but More Investment Discussions

ily de-risked by the prior

owner’s leasing, and that it is using its platform to continue down that path to strategically

lease and stabilize the property. To put this this pricing into perspective, it acquired Crabtree

at ~11% cap rate and it believes the cap rate would be lower today (possibly sub-10%). More

broadly speaking, the company is seeing more capital entering the mall space as financing

is becoming more available and this could lead to further compression. In terms of the

potential for additional investments, the team is hopeful that it can continue to find a few more

opportunities like Annapolis/Crabtree and with the hire of a new EVP of investments, is

focused on executing on this avenue of growth as well. Some parameters for potential

acquisitions seem to be that they would be “chunky” assets in the $250-300 million range with

9-11% cap rates. The company is primarily focused on trade area qualities (income, traffic,

etc) for future transactions as opposed to specifically targeting properties close to its existing

assets (this was the case for Annapolis Mall). The team continues to see equity as an attractive

source of cash to fund future acquisitions, and noted that the company will not raise its

leverage target to complete a transaction. Management also reaffirmed that it was on track

with its asset giveback/dispositions, noting that mall disposition/givebacks are now largely

done. It continues to work through its land/outparcel disposition pipeline but noted that

transactions often drag out as many are dependent on things such as entitlements and securing

leases prior to executing sales.