J.C. Penney could exit Chapter 11 bankruptcy proceedings before the holidays, CEO Jill Soltau says. The retailer has filed a draft asset purchase agreement, moving it closer to a sale to Simon Property Group and Brookfield Property Partners.
True Religion is exiting Chapter 11 bankruptcy protection with plans to keep more than 50 of its 87 stores open. Simon Property Group -- the retailer's landlord for many of its stores -- was a key partner in the company's reorganization, according to CEO Michael Buckely.
Prologis' third-quarter earnings report cited demand improvements in several parts of the economy, and Prologis Chairman and CEO Hamid Moghadam noted that "activity in our portfolio is robust and broadening." The REIT posted a 28.4% year-over-year increase in new leases, and it increased its 2020 guidance for core funds from operations.
The infrastructure arm of Goldman Sachs Group is putting $500 million into Global Compute Infrastructure, which is headed by Scott Peterson, formerly an executive at Digital Realty Trust. "There's so much capital chasing deals, but based on the breadth of our track record, we believe we can find, evaluate and underwrite transactions as well as serve the critical needs of our customers," Peterson says.
New demand for self-storage facilities has emerged amid the coronavirus pandemic, and some developers have put projects on hold, stabilizing rents in the sector. "The largest question on our mind is whether the fall and anticipated winter COVID-19 resurgence will stifle and ultimately derail the economic recovery," says Ryan Clark of SkyView Advisors.
Entities connected to CloudKitchens -- a ghost kitchen venture from former Uber CEO Travis Kalanick -- have acquired more than 40 properties in deals totaling more than $130 million. The pandemic has given a big boost to the emerging ghost kitchen model, but some of CloudKitchens' competitors are less eager to acquire property.
Retailers are offering their parking lots for everything from haunted houses to a bingo games for seniors to increase revenue and draw more shoppers. The parking lots have also hosted job fairs and served as COVID-19 testing sites.
Fundraising by public non-listed REITs has rebounded after dropping following the onset of the pandemic, according to Robert A. Stanger & Co., and some of these REITs are continuing to pursue deals. "Fundraising has rebounded because investors are no longer in a 'panic' mode' and are looking for ... attractive yields in a yield-starved world," says Starwood Real Estate Investment Trust CEO John McCarthy.
Research conducted by CEM Benchmarking and sponsored by Nareit found that over a 21-year period, REITs outperformed private real estate by almost 2.7 percentage points per year while offering superior risk-adjusted returns. Listed REITs ranked the second highest in average annual net return out of the 12 asset classes in the study.
Retail sales rose 1.9% in September, topping analysts expectations and accelerating from the 0.6% gain in August. Nareit economist Calvin Schnure says that the recovery of retail sales since June hints at a robust holiday season, as spending in September was 8.2% above last year. Households aren't going out to dinner or entertainment or on vacations, and may be ready to spend some of the savings that they have accumulated.
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