12 REITs With the Highest Exposure to Bed Bath & Beyond

These 12 real estate investment trusts collectively hold 143 leases for stores in the bankrupt chain.
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Written by Steven Porrello
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Edited by Rick VanderKnyff
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Real estate investment trusts, or REITs, typically aren’t volatile investments, not in the way of tech startups at least. But when one of their tenants is a household retail brand, like Bed Bath & Beyond, that tenant’s bankruptcy could make for unsettling news.

According to data compiled by S&P Global Market Intelligence, Bed Bath & Beyond is a “top tenant” for 12 retail REITs that collectively hold 143 Bed Bath & Beyond leases. That means if the former retail giant empties all of its stores, these real estate companies will have to figure out how to fill 143 vacant spaces.

REITs are traded on exchanges like stocks and exchange-traded funds, or ETFs. These companies are legally required to dish out at least 90% of their taxable income to shareholders as dividends. A potential loss of revenue, then, could threaten a REIT’s ability to pay dividends at current levels.

At the beginning of 2023, Bed Bath & Beyond had more than 700 locations, down from well over 1,000 as recently as 2019. With only 360 locations left in April, that number will gradually dwindle — potentially affecting the landlords who lease out the space.

But there is good news: No retail REIT has more than 2.3% of its total portfolio exposed to Bed Bath & Beyond. And, as we’ll explain, filling retail space with new tenants shouldn’t be too challenging in a real estate market that still lacks sufficient space.

Still, it’s important to be informed about your investments. If you invest in retail REITs, here are the 12 that have the highest exposure to Bed Bath & Beyond (BBBY).

REITs covered

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RPT Realty (RPT)

What it is: Owner of 57 open-air shopping centers comprising 12.2 million square feet.

Number of BBBY leases: 13.

Annual base rent: $4.1 million.

Percentage of total portfolio (by base rent): 2.3%.

Acadia Realty Trust (AKR)

What it is: An equity REIT that owns high-end retail space in major U.S. cities, like New York, Boston and Los Angeles.

Number of BBBY leases: Two.

Annual base rent: $3.3 million.

Percentage of total portfolio (by base rent): 2.2%.

SITE Centers Corp. (SITC)

What it is: Owner of 121 open-air properties located primarily in upscale suburbs.

Number of BBBY leases: 17.

Annual base rent: $8.5 million.

Percentage of total portfolio (by base rent): 1.8%.

Urstadt Biddle Properties Inc. (UBA)

What it is: This REIT owns shopping centers that are anchored by grocery stores. In other words, the grocery store is the main attraction, and the smaller shops around it — like Bed Bath & Beyond — can benefit from its foot traffic.

Number of BBBY leases: Two.

Annual base rent: Not given.

Percentage of total portfolio (by base rent): 1.6%.

Kite Realty Group Trust (KRG)

What it is: Kite Realty manages 181 open-air shopping centers comprising almost 29 million square feet.

Number of BBBY leases: 23.

Annual base rent: $8.3 million.

Percentage of total portfolio (by base rent): 1.4%.

InvenTrust Properties Corp. (IVT)

What it is: Retail REIT with 62 retail properties located primarily in the Sun Belt.

Number of BBBY leases: Five.

Annual base rent: $1.9 million.

Percentage of total portfolio (by base rent): 1.1%.

Urban Edge Properties (UE)

What it is: Urban Edge manages urban shopping malls and plazas within major metropolitan areas, like New York and Los Angeles.

Number of BBBY leases: Seven.

Annual base rent: $3 million.

Percentage of total portfolio (by base rent): 1.1%.

Federal Realty Investment Trust (FRT)

What it is: Major retail REIT with 105 properties and 3,100 tenants.

Number of BBBY leases: 11.

Annual base rent: $6.8 million.

Percentage of total portfolio (by base rent): 0.8%.

Kimco Realty Corp. (KIM)

What it is: Kimco owns interest in 529 shopping centers and other structures, making it one of the largest retail REITs in the U.S.

Number of BBBY leases: 31.

Annual base rent: $9.8 million.

Percentage of total portfolio (by base rent): 0.7%.

Armada Hoffler Properties (AHH)

What it is: Real estate company that develops and manages office, retail and multifamily properties in the mid-Atlantic and Southeastern U.S.

Number of BBBY leases: Two.

Annual base rent: $1.1 million.

Percentage of total portfolio (by base rent): 0.6%.

Brixmor Property Group Inc. (BRX)

What it is: Large-cap retail REIT that manages 379 retail centers and partners with over 5,000 retailers.

Number of BBBY leases: 19.

Annual base rent: $5.3 million.

Percentage of total portfolio (by base rent): 0.6%.

Regency Centers Corp. (REG)

What it is: National retail REIT with over 404 shopping centers comprising 54 million square feet.

Number of BBBY leases: 11.

Annual base rent: $5.5 million.

Percentage of total portfolio (by base rent): 0.6%.

What should you do if you’re invested in these REITs?

Most of these REITs have minimal exposure to Bed Bath & Beyond. Even if these property managers struggled to find tenants to fill vacant buildings and shopping centers, they would still have more than 97% of their portfolios to fall back on.

But vacant buildings shouldn’t pose much of a problem. As reported by CNN, retail space is scarce, vacancies are at a historic low, and demand is high among discount stores and gyms. Already, several retailers, such as T.J. Maxx, Dollar Tree and Ross, have moved into stores formerly closed by Bed Bath & Beyond.

That said, if most of your portfolio is exposed to retail REITs, you might benefit from diversifying your holding anyway. Even picking different types of REITS — such as REITs focused on storage and data centers — could bring more harmony to your holdings.

Neither the author nor editor held positions in the aforementioned investments at the time of publication.