Atlanta Investment Sales Monthly Newsletter | August

Monthly Insight into the Capital Markets

SRS Real Estate Partners is pleased to distribute it’s monthly investment sales newsletter presented by the Atlanta Investment Sales Team, composed of Kyle Stonis,Pierce Mayson and David Holcombe.

Retail Capital Markets H1 2012

 Source: Real Capital Analytics, Inc.

REIT’s Retrade on Earnings Expectations- Optimistic about End of 2012

U.S. REITs are optimistic about the balance of 2012, with some even raising their earnings expectations based on increased leasing momentum and growing rents in the first half of the year. Equity One is projecting that FFO will be between $1.08 and $1.12 per share, up from its previous guidance of $1.04 to $1.12, and Federal Realty says FFO will grow by between $4.27 and $4.31 per share. The firm had previously projected $4.24 to $4.29 per share; however, in Q2, the firm’s same-center NOI increased 3.5% over the same quarter a year ago, leading to expanded expectations. Kimco Realty revised its full-year FFO expectations from between $1.22 and $1.26 per share to between $1.24 and $1.26 per share, after same-store NOI in its U.S. portfolio grew 2.1% in Q2. “With virtually no new construction activity, continued population increases and a growing GDP, we are confident about the short- and intermediate-term prospects for our business and our portfolio,” said Kimco CEO David B. Henry.“While retail real estate and consumer spending are vulnerable, longer term, to any form of economic double dip, for now there is strong momentum among the majority of retailers as they execute expansion plans and growth strategies in the face of a shrinking supply of high-quality retail space.”
Source: Shopping Centers Today

Empty Boxes Make Room for Furniture Chains

The burgeoning world of furniture retail is striking while the proverbial iron is hot when it comes to shopping centers with vacant boxes. As retailers like Circuit City, Linens N’ Things and more recently, Borders store closings leave holes, furniture retailers are snapping up the secondary space in the midst of impending and current expansion plans. Ashley Furniture, La-Z-Boy, Rooms-To-Go, Basset Furniture, American Signature Home and Badcock Home Furniture among others will all be looking to expand in the coming year. Even RAC Rent-A-Center, already the largest rent-to-own chain with 2,983 stores, plans to open 50 locations this year in an effort to put pressure on traditional furniture chains.
Source: Crittenden Retail Space

Atlanta Investment Sales Team