Is the Worst Over for Simon Property Group?
Owning and operating malls is a hard business, and the efforts to contain the coronavirus pandemic in 2020 made it even worse. Three mall real estate investment trusts were even forced into bankruptcy court. Simon Property Group (NYSE: SPG) managed to avoid that fate, and now that its malls are open again the question for many investors is whether are not the worst is over yet. There's an easy answer and a hard one. Here's what you need to understand about Simon today.
Simon's malls were temporarily shut down at various points in 2020, causing all sorts of problems for the real estate investment trust (REIT). For example, it ended up suing key tenants that decided not to pay rent, and it cut its dividend by nearly 40%. Although occupancy didn't fall off a cliff, it took months for consumers to start heading to the malls again. But roughly halfway through 2021, it looks as if Simon has, indeed, turned a corner.
Image source: Getty Images.
Source Fool.com
