Portfolio Manager Says Top-Tier Malls “Thriving”

Scott Craig, vice president and portfolio manager at Eaton Vance Management, joined REIT.com for a video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.

Craig shared his views on interest rate movements and their likely impact on REIT stocks. He stressed that real estate is a long-duration asset class.

“The forward yield curve today implies that five years from now, the 10-year U.S. Treasury rate will be less than 2.5 percent. That’s a very supportive environment for real estate,” he said.

Turning to the outlook for regional shopping centers in the face of department store weakness, Craig observed that class-A malls have been successful filling in department store space and are “thriving.” The situation has been much tougher in the other segments, he noted.

Craig also commented on increased supply in the apartment sector.

“Supply is clearly a short-term headwind, but in the long term, we still really believe in rental housing. We think the demographics and lifestyle issues are quite favorable, and we think this is a great opportunity to add to positions,” Craig said.