Mall REITs rocked by news of J.C. Penney store closures

Shares of real-estate investment trusts tied to malls fell sharply Friday, after J.C. Penney Co. became the latest retailer to announce plans to close stores, further shaking confidence in the sector at a time of slowing traffic.

J.C. Penney JCP, -5.83% said it will close 130 to 140 stores in the next few months, to “help align the company’s brick-and-mortar presence with its omnichannel network, thereby redirecting capital resources to invest in locations and initiatives that offer the greatest revenue potential.”

The department-store operator announced the move as it reported fourth-quarter earnings showing below-consensus sales and offered a weak outlook for 2017 same-store sales.

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