According to a report released by Reis Inc, a leading real estate research firm, the US strip mall vacancy rate has surged to 10% in the second quarter of 2009 – the highest in 17 years.

Due to the continued downturn in the housing industry and the implosion of the credit markets, retail fundamentals are rapidly deteriorating across the country. However, Regency Centers Corporation (REG) – a leading real estate investment trust (REIT), has continually performed at the top-end of its peer group.

The company is one of the leading owners, operators, and developers of grocery-anchored retail shopping centers in the US. Regency’s retail strip center portfolio is among the best in the sector, with properties in high income, high-barrier markets. The company has a significant percentage of its portfolio in large population centers in Florida, Texas and California.

During the quarter, asking rent in the strip mall segment has decreased 1.7%,

...

Vornado Realty Trust (VNO) reported relatively healthy 1Q09 results. Recurring FFO [funds from operations] increased 7% in the quarter compared to 1Q08. Most operating metrics were positive in the company's core markets. It is clear that office and retail fundamentals are getting worse, and operations will deteriorate as 2009 progresses.Occupancy has started to slip and will continue to fall due to soft office and retail demand. However, we think VNO at a discounted price represents good long-term value. The company recently sold equity and has been buying back debt in an attempt to strengthen the balance sheet. VNO now has plenty of cash and enough liquidity to address 2009 and 2010 debt maturities. The company will pay 60% of its 2009 dividend in stock to conserve cash.We continue our Buy rating, although expect volatility in the entire office sector in the coming months. VNO ...

Yesterday, General Growth Properties, Inc. (GGP) announced that it had extended the expiration date to receive consent solicitation from bondholders until March 20th. The origination solicitation expired on Monday, March 16th. GGP is seeking solicitation consent from bondholders on $2.25 billion of notes. GGP is asking bondholders to extend the maturity on bonds due in March and April.In addition, the company is asking bondholders on these notes and 3 other issues to forgo interest payments through the end of this year. Interest will be accrued and added to principle. The company needs approval of 90% of holders of the 2009 bonds and 75% approval from the 3 other issues.The company indicated that only 41% of 2009 bondholders have agreed so far. $395 of bonds matured on March 15th, so the company is now technically in default on these issues. GGP is also in default ...

Santa Monica, CA-based, The Macerich Company (MAC) is a real estate investment trust (REIT) focused on leasing regional and community shopping centers throughout the US. The company owns or has a managing interest in 72 regional shopping centers and 20 community shopping centers with approximately 77 million square feet of gross leasable area (GLA). MAC has strong concentrations of malls in Arizona and California.FFO [funds from operations] in 4Q08 was $2.08 per share vs. $1.45 in 4Q07. Excluding gains from debt buybacks ($1.07 per share) and losses from impairments ($0.31 per share), 4Q FFO was $1.32 per share.Overall, the company's portfolio continues to perform well. Rents increased 23% in the 4th quarter on new leases. MAC has scaled down its development pipeline and the company is focusing on liquidity. The company appears to have enough cash and borrowing capacity for 2009 and 2010 debt ...