REITs Plummet as Yields Rise, Scotiabank Warns of Occupancy Risk

Tanger Factory Outlet Centers helped lead mall and shopping center stocks lower as Scotiabank warned about higher occupancy risks and the 10-year Treasury yield reached its highest level since the March Fed meeting.

• Tanger sank 4.9% to a nine-year low; stock screens as having greatest level of exposure to tenants with a bankruptcy risk in malls
• Potential impact of bankruptcies to malls (SKT, MAC, SPG, TCO) is at least double that of shopping centers (REG, WRI, KIM, FRT, BRX) due to apparel exposure
• “About 60% of the ~40 retailer bankruptcies since 2017 were apparel-focused; only 4 of the total ...