2024-04-21 10:04:24 ET
Summary
- This article downgrades my rating on Simon Property Group stock from a buy to a hold due to recent developments.
- The bullish catalysts I saw in 2023 have largely run their course.
- The performance rebound has already occurred, with occupancy levels reaching my expected range.
- Valuation discounts have disappeared and the company's leverage has become more concerning.
Thesis
I wrote a few bullish articles on Simon Property Group ( SPG ) in the second half of 2023 when the stock was trading around an average price of ~$115 (see the chart below). The key arguments for my bullish thesis back then were twofold: A) I expect the performance metrics of SPG to rebound nicely from the aftermath of the COVID pandemic, and B) the valuation discounts were too large to ignore at that time....
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For further details see:
Simon Property: Time To Take Some Profit