Call it the domino effect. As Retailer Daily reports, it's going to be a Blue Christmas for retail landlords.
The market reacted harshly to the news: Shares of Developers Diversified Realty, which has 50 Circuit City stores and derives 1.7% of its annual revenue from them, fell 24.6% on Monday. Real estate investment trusts (REIT) Kimco Realty and General Growth Properties also declined 9.6% and 34% respectively. (General Growth dropped another 68% in Tuesday trading.)Among the other REITs that lost value are Simon Property Group and Vornado Realty Corp.
Don't forget that REIT and other property stocks have already been clobbered this past year, so it's not as if there was oodles of market cap that could be erased and shrugged off with impunity.
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