Matt Katz, Managing Partner and Head of Retail & Consumer Packaged Goods spoke with Retail Dive about the growing success of struggling malls forming Real Estate Investment Trusts, or REITs. Malls can directly benefit their struggling tenants through investing in them, all while preserving their own rent incomes. Matt explains this, “These REITs and partnerships are evolving, and proof positive that solutions can be developed. In this situation, not only can these REITs and partnerships see upside in the business, but they also have a way to protect rental income.”

He goes on to note that REITs not only benefit malls looking to assure continued rent revenue but also the long-term success of struggling retailers, “In the transactions I’ve seen where the REITs now own such retailers, they made the acquisition on the basis that the underlying business had value and could be further improved.”

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Matt Katz serves as a Managing Partner and heads the Retail & Consumer Packaged Goods and Private Equity practices at SSA & Company