US shopping mall Reits hurt by department store woes

New York

AFTER a spate of disappointing quarterly results from big-name retailers, mall real estate investment trusts (Reits) have come under pressure.

The FTSE NAREIT regional mall index is on track for its second straight month of declines, after department store operators such as Macy's and Nordstrom reported disappointing earnings and soft monthly sales results, raising concerns about possible store closings.

High-end malls, where names such as Nordstrom serve as an anchor, are considered more resistant to department store closings as they are able to attract new occupants often paying higher rents. A glut of s…