TCO - Is Simon Property Group a Buy?
Mall real estate investment trusts (REITs) have been hit hard by the efforts to slow the spread of COVID-19 -- and Simon Property Group (NYSE: SPG), the largest and most diversified name in the space, hasn't been spared. With so much still in flux around the coronavirus, only aggressive investors should be looking at this mall landlord. And even then, you'll need a glass-half-full outlook. Here are five things to consider before you make a purchase of Simon stock.
Simon is the largest publicly traded mall-focused real estate investment trust, with a portfolio of more than 200 enclosed malls and outlet centers. In addition to having a large number of malls, it also owns a number of retail assets in Europe and Asia, providing at least some geographic diversification. Moreover, its malls tend to be well located and desirable assets; the company has historically been able to charge high rents because its assets generate material sales per square foot.
Image source: Getty Images