NEW YORK–Class A malls are in trouble. This is, at least,according to various analysts that expressed dismay last week aboutBrookfield Property Partners' $9.25 billion deal to acquire the rest of GGP. And ofcourse, the market signaled its disapproval of the deal, promptlypunishing retail REIT stocks in the wake of the news of the $23.50per share purchase price. The theory behind the upset is that ithad been broadly expected that GGP would trade at a higher price.The fact that it didn't — assuming shareholders approve the deal —thus points to a decline in valuations across all mall stocks,including the REITs that hold high-quality assets.

JPMorgan analysts said in a note that:

While we still see value in mall stocks, we think the GGP newsis negative for the sector and, as such, we are moving our threepreviously overweight-rated mall REITs to neutral.

RBC Capital Markets analysts wrote that:

The terms of the agreement are below our target price [of $24 ashare] and the average sell-side target, which suggests to us areset lower for pricing of high-quality mall portfolios

And at BTIG:

GGP management has clearly stated on numerous occasions toshareholders that its assets are worth substantially more thanwhere its shares are currently trading. We are surprised that theSpecial Committee has unanimously approved the new offer andrecommends that the GGP shareholders approve the proposedterms.

These reports belie a year over year increase in inline storesales for such REITs as Macerich, Simon Property Group,Taubman and GGP, according toTrepp Talk.