Simon Property Group: The Rise And Fall Of Shopping Malls Is Overblown

Summary

  • Simon Property Group was forced to cut its dividend during the pandemic but has shown resilience and continued to grow its FFO and revenue ever since.
  • SPG has an A-rated balance sheet and trades at a discount to its 5-year P/AFFO ratio. I rate SPG a buy.
  • The real estate sector may continue to face headwinds due to high interest rates, but investors with a long-term outlook should consider SPG.
  • SPG continues to adapt to changing consumer needs with the redevelopment of many of its properties with tranquil lounges, broader dining & gathering places, and more high-end retailers.

Duty Free Shops and Food Court at new Istanbul Airport's International Departures Terminal, Istanbul Havalimani in Turkey

Mirko Kuzmanovic/iStock Editorial via Getty Images

Introduction

It seems that since COVID happened, shopping malls are not the same. The dynamic just feels different nowadays. I'm not a huge shopper, but I do like to go browse from time to time. Maybe buy a T-shirt

This article was written by

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Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who enjoys dividend investing in quality blue-chip stocks, BDC's, and REITs. I am a buy-and-hold investor who prefers quality over quantity and plans to supplement his retirement income and live off dividends in the next 5-7 years. I aspire to reach and help the hard working, lower and middle class workers build investment portfolios of high quality, dividend-paying companies. I also hope to give investors a new perspective to help them reach financial independence.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SPG over the next 72 hours. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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