The real estate investment trust (REIT) saw its stock slide 14.5% to $217.90 during midday trading on Monday. The retreat marks a sharp reversal for a stock that had gained 13% over the past year, as investors reacted to a net income that plummeted to $3.8 million, or 74 cents per share, down from $12.3 million in the same period last year.

Impact of Retail Vacancies

Management attributed the shrinking top line to the expiration of leases at two high-profile New York City properties. The departure of Home Depot and IKEA from these locations pressured rental income, causing total revenue to slip 4.7% to $53.3 million.

The company’s core performance metric, funds from operations (FFO), reflected the broader downturn:

• FFO reached $12.5 million, or $2.43 per share.
• This represents a nearly 40% decline from the $20.8 million reported a year earlier.
• The drop highlights the ongoing volatility in urban commercial real estate as major anchors renegotiate or exit large-scale footprints.