I'm Buying Malls With Yields Up To 15%

Buy assets when they are offered on the cheap, sell them when the market euphoria takes over. Simple logic, yet so often misapplied in the market place.
Just have a look at the FANG stocks , Facebook (FB), Amazon (AMZN), Alphabet (GOOG) and Netflix (NFLX).
GOOG data by YCharts
Investors are clearly excited about high-tech growth companies, perhaps too much if you ask me. Look at these valuation multiples:
AMZN PE Ratio (ttm) data by YCharts
Sure, each firm has attractive growth prospects, but what if the expectations are just set too high with such lofty valuations? We are not here to make judgements, and have not done the necessary homework to answer this question, but we would simply note that after a long period of significant outperformance, investors may want to consider other sectors offering perhaps more value.
In this sense, we are here to look at a specific market niche that may offer just that.
Mall REITs: Irrational Fear, Mispriced Risk, Excess Yield While growth names got all the attention in the recent years, one sector that took great pain is retail REITs, and more specifically mall REITs.
SPG data by YCharts
This is due to two main reasons:
The market thinks that the growth of e-commerce will cause significant pain to mall properties. The recent rise in interest rates is causing a deterioration in market sentiment for REITs as a whole. Yet, after studying the fundamentals in depth, we feel that to the most part, the market... Read more