Embedded Low-rent LeasesOversized Saks store footprints that pay relatively low rent may drag on SKT's average rent per square foot and limit near-term rental income growth.
Investor Sentiment HeadwindsSkepticism among investors toward retail REITs amid shifting consumer behavior could pressure SKT's valuation and increase the cost of accessing capital.
Tenant Bankruptcy ExposureSaks Global's Chapter 11 filing raises the risk that multiple SKT leases could be rejected or renegotiated, potentially reducing rental income.