Reasons to Read

We discuss recent bankruptcy protection filings from two REITS—CBL and Pennsylvania Real Estate Investment Trust (PREIT). Both filings were voluntary, intended to trigger agreements reached with their respective creditors.

We outline company comments on the filings and compare CBL and PREIT in terms of properties and selected financial metrics. We also discuss our expectations for further filings from REITs and retailers in the wake of the pandemic.

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These two bankruptcy filings represent the first events in what is likely to be a long restructuring process among retailers, landlords and landlord creditors. Coresight Research estimates that around 25% of malls will close over the next three to five years. Click here to read more about the coronavirus-induced acceleration of mall consolidation.