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High-Quality Retail REITs on the Clearance Rack

Despite the dour headlines, we see buying opportunities in these real estate investment trusts.

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A recent article in The Wall Street Journal asserted that retail real estate investment trusts have been the focus of increased short-selling activity. 

These REITs own malls and shopping centers that are homes to struggling retailers such as  Macy's (M), Sears (SHLD), and J.C. Penney (JCP). According to the Journal, short sellers have been active in the mall REIT space, betting that these landlords will face higher costs to spruce up their shopping centers or struggle to replace stores that close, especially in weaker locations.

Karen Wallace does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.