Brick-and-mortar retail is making a comeback and Simon Property Group (NYSE:SPG) is the best of breed, back in substantial growth mode. SPG is extremely well positioned on most, if not all, fronts. Virtually all important metrics are trending
Simon Property Group Ready To Fly
Summary
- Simon is firing on all cylinders. Metrics are trending in the right direction: profitability is up, cash flow is up, tenant sales are up, occupancy is up, foot traffic is up, etc.
- Simon raised its FY guidance and boosted its dividend for the second time this year (second time in a row).
- The dividend payout ratio remains low and Simon has a clear path to restore the dividend back to pre-pandemic levels, which implies a yield on cost of ~6.5%.
- Simon is not just a mall company. There are many moving parts (outlets, Mills, SPARC, ABG, Klépierre, etc.) and one needs to understand all elements of the Simon Group.
- E-commerce digital sales now exceed $3.5 billion across various Simon platforms, something the market fails to realize.
Value-oriented investor focusing on marketable securities, real estate as well as early-stage companies.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SPG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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