Economic Indicators
Categories
Real Estate
A real problem for real estate?
Shift to e-commerce has hurt retail REITs in U.S. more than elsewhere
.png)
Consumers are shopping more online, which has not only hurt retailers but also property owners, including retail real estate investment trusts (REITs). The industry has struggled broadly, but U.S.-based companies have been hit hardest. Over the last five years, the U.S. Retail REITs industry has lagged the MSCI USA Index by 85%. In contrast, similar companies outside of the U.S. have trailed the MSCI World ex US Index by only 27%. International retail REITs have been more resilient for a couple of reasons. International consumers don’t shop online as much as they do in the U.S. And European department stores don’t anchor shopping malls – meaning that the malls aren’t as reliant on successful department stores to maintain foot traffic. The industry remains pressured both in the U.S. and abroad, but ultimately the long-term outlook for any individual REIT depends on its portfolio of properties. Investors should consider a bottom-up approach to research, which may help uncover companies with better prospects trading at attractive values.
Learn more about
Past results are not predictive of results in future periods.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries.
MSCI does not approve, review or produce reports published on this site, makes no express or implied warranties or representations and is not liable whatsoever for any data represented. You may not redistribute MSCI data or use it as a basis for other indices or investment products.
Our latest insights
-
-
-
Asset Allocation
-
-
Interest Rates
RELATED INSIGHTS
-
Economic Indicators
-
-
United States
Never miss an insight
The Capital Ideas newsletter delivers weekly insights straight to your inbox.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses.
This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.