Tough Times Continue for These 2 Mall REITs

To say that mall owners have suffered over the past few years would be a huge understatement. Changing shopping habits have forced mall owners across the U.S. to reposition their properties to better cater to consumers' desires. However, transforming a tired mall takes a lot of time and money. For many malls, the revival efforts turned out to be too little, too late.

As a result, profitability has plunged at most mid-tier mall REITs, causing their share prices to crater, too. On a total-return basis -- which includes the impact of dividends -- Pennsylvania Real Estate Investment Trust (NYSE: PEI) shareholders have lost nearly 60% of their money over the past five years. Amazingly, Washington Prime (NYSE: WPG) shareholders have incurred even bigger losses.