the market is fussy at times, investors will learn it is wise to hunt for these hidden jewels that pay a decent dividend to get paid for the risk is a sweet spot to be in, while other stocks sweat it out . just my thoughts, Garp guy
I'm starting to get concerned of the loss at the malls due to internet sales. I know ARCP holds only free standing retail stores. However even auto parts are being bought now on line, Not ready to sell yet but watching it very carefully.
The largest tenants are Walgreens- 3.5%; AT&T 3.1%; CVS 2.9%; Dollar general 2.5%; Fedex 2.1%; Petsmart 2.0%; Albertsons 2.0%; Family dollar 1.9%; ; FSA 1.9%; Citizens bank 1.8%.
How does amazon affect any of these? There is almost no effect. The only traditional retail is dollar stores and drug stores which AMZN can't really touch-- dollar stores will thrive in bad economy and you need pharmacists for drug stores, etc. Also, AMZN doesn't offer financial services to touch banks, and of course FDX is booming.
Over 49% are investment grade...and we're dealing with long term leases, so there is likely only 51% of the portfolio that can really cause issues, and even they are locked in long term.
The funny thing, is if for some reason in a severe downturn, ARCP got into trouble and had to cut the dividend say 25%, it would still have a higher yield than O
You keep mentioning malls and internet sales, which are irrelevant to ARCP. Simon Property Group's MB might be a better place for you to voice such concerns. The much bigger issue for REITs like ARCP is interest rates, which is why the price is rising today (interest rates are falling) while we just received horrible retail numbers for January. I think interest rates have much further to fall (due to a number of factors), which should be positive for ARCP.
People still like to fondle ie shop, where you can touch etc, the item you're thinking of buying. My wife goes to the malls every day, so do her friends, and I think they alone will be able to keep most malls hopping. I actually use Amazon now for price comps then stroll over to home depot or menards to actually buy. Color me not too concerned about leases
I do not see that meaning anything at all unless a store closes and stops paying its lease. Stores are required to pay rent regardless of the amount of sales each month. Watching internet sales is meaningless; only actual store closings and breaking of a lease would mean anything to ARCP.