ptgkc

The Great REIT Unravelling Begins? Simon Property Group Defaults on Loan

It's on Reuters. SPG as partner in default for this mall. It also contains other discussed comments that sometimes it's best for a REIT to walk away from a property that is going to underperform. They have also refinanced other malls at interest rates that are OK for a REIT in current conditions (under 8%). Add to that the completed stock offering, and they are in better shape than most.

www.reuters.com/articl...

Personally, I still don't like the sector. While the new offering raised cash, it is dilutive. Add that to recent change to pay 90% of dividends in stock instead of cash. SPG will hold up better in this storm than others, but we still don't know how long or strong this downturn will be. Like buying Wynn as best casino. It might be, but the business stinks, so you just lose smaller amounts of capital.

I'd stay with tech, healthcare, and energy, along with some pure defensive stocks. And a little gold. Too much risk elsewhere.