1 Number I'm Watching at Simon Property Group
COVID-19 has upended the retail sector, with malls like the ones that real estate investment trust (REIT) Simon Property Group (NYSE: SPG) owns taking the brunt of the hit. The problem is that this economic downturn isn't like the ones that have come before it, and it is causing changes that could alter the retail environment forever. This is the one number to watch if you want to get a true feel for how Simon is managing through the hit.
Historically, there are a few key numbers that real estate investment trust investors would monitor to see how a landlord was doing. Things like funds from operations (FFO), which is like earnings for an industrial concern, are still relevant, but they are uniformly bad for retail-focused REITs like Simon. That's because of the efforts to slow the spread of the coronavirus, which shut non-essential businesses and reduced foot traffic by asking consumers to stay home. Yes, FFO is still important -- but there are bigger issues right now, including simple survival.
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Source Fool.com
