2024-07-13 13:22:10 ET
Summary
- My last article on Simon Property Group was issued in March 2020.
- The thesis was bullish and the returns have reached 280%.
- While I continue to hold SPG in my portfolio, I do not think that it is a sound idea to carry a notable exposure in this REIT.
- In the article I elaborate on the key reasons why I consider SPG a decent dividend stock but with unattractive return profile.
My last article on Simon Property Group (NYSE: SPG ) was issued way back in March, 2020 when the stock had dropped by circa 60% since the start of the year. My thesis was bullish and supported by SPG's upper investment grade credit rating and access to ample amounts of liquidity, which in my eyes were totally sufficient to cover the costs for couple of years in a row even assuming that majority of its malls will not be open during this period. In other words, the scenario had to be very pessimistic in order to force SPG to file chapter 11 or venture into value-destructive share issuances....
Read the full article on Seeking Alpha
For further details see:
Simon Property Group: Still In My Portfolio But Certainly Not Adding More