Is Simon Property Group a Buy?
Real estate investment trust (REIT) Simon Property Group (NYSE: SPG) is one of the largest owners of retail malls in the world. The global pandemic, however, hasn't been kind to malls, with economic shutdowns and social distancing leaving consumer traffic anemic at best. However, the stock is up 20% over the past month as investors have started to look past COVID-19. Should you join the crowd and buy in?
At its core, a real estate investment trust is only as good as the collection of assets it owns. On that score, Simon comes out pretty well, with a portfolio of around 200 enclosed malls and outlet centers. Most are in the U.S. market, but it also has some exposure to key foreign markets like Europe and Asia. The differentiating point here is the location of its properties, with most of its assets near densely populated regions that have high average incomes. In fact, it sits near the top of its peer group when it comes to these key metrics.
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Source Fool.com
