The Changing REIT Landscape

By Steve R. Brown - January 11, 2018

As customer preference continues to skew toward online purchases, brick-and-mortar stores continue to feel the impact. The competition can come from online-only rivals or from traditional retailers ramping up their e-commerce platform—including competition from a brick-and-mortar store’s own online presence.

Regardless of whether an individual retailer comes out ahead after multi-channel sales are combined, it certainly has an effect for real estate investment trusts (REITs) investors. 2017 brought with it many notable department store closings around the country, from Sears to Macy’s to Dillard’s. However, these stores are closing in B- and C-tier malls—not across the board. That’s important to note because I believe A-tier mall property owners still present opportunity in the REITs space. We’re being very selective in choosing where to invest headed into 2018, and I see a bright year on the horizon.

I also see REITs benefiting this year from tax reform, both in the short-term and the long-term—specifically rental properties. Watch the four-minute video below for more insight into what’s driving my thought process as I lead the charge for locating opportunity in the next 12 months.

Steve R. Brown
Steve R. Brown
  • Related Articles
  • More From Author

The Search for Bargains in Value Investing

It's been a tough year for value investors, but VP and Sr. Portfolio Manager Michael Liss sees risk-rewards in energy and consumer staples.

Emerging Market Stocks: Have They Hit Bottom?

2018 hasn't been kind to emerging markets. Sr. Portfolio Manager Patricia Ribeiro believes fears of contagion, which never materialized, caused the recent volatility. Read why she's still encouraged by opportunities.

Getting to Know U.S. Value Investor Phil Davidson

Veteran investment manager has a record of creating value for investors.

    The Changing REIT Landscape

    Online retailers and tax reform are having big impacts on the REITs environment in 2018. Here's where PM Steve Brown is looking for opportunities this year.

      References to specific securities are for illustrative purposes only, and are not intended as recommendations to purchase or sell securities. Opinions and estimates offered constitute our judgment and, along with other portfolio data, are subject to change without notice.

      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.