Perhaps this point has been discussed earlier on this MB but for newbies in REIT (like myself who just opened a position today) it is worth saying. The excellent wide diversification of ARCP by sector can overshadow the even more positive post-Cole merger industrial concentrations.
Moody in their report said: "The largest industry concentrations after Cole will be pharmacy (7.5% of annualized rent), quick service restaurant (7.2%), casual dining (6.5%), supermarket (4.6%), family dining (4.3%), and discount retail (4.1%)."
Think about it. I get a minor sickness - I run to the Pharmacy. I want a quick bite to eat - I go thru the drive-through restaurant. I want a quiet evening out with someone with a little more ambience than a McDonalds that won't soak my wallet - I go out to a casual dining place.
None of that will be replaced with point and click in front of a screen.
I wouldn't invest in reits holding malls. In our metro area of 1.5 million people they have already closed 3 malls or converted them to free standing stores. The mall we have in downtown is losing tenants left and right. ARCP should weather this storm because of their free standing holdings.