Simon Property Thinks Its Stock Is Cheap. Time to Buy?
The entire real estate investment trust (REIT) sector is out of favor today thanks to rising interest rates. Mall REITs like Simon Property Group (NYSE: SPG) have been out of favor for even longer thanks to the pandemic and fears about the growth in online retail. This is why Simon's dividend yield has reached a lofty 6.5% today.
That figure has changed the company's priorities. Simon Property thinks that buying back its own shares is one of the best investments it can make now. That's what it's been doing -- and long-term investors might consider following its example and buy shares, too.
There's nothing particularly special about Simon when it comes to being a REIT. Sure, it is focused on owning enclosed malls and factory outlet centers, but buying, building, and managing properties is pretty similar across the board despite the nuances of individual property types.
Source Fool.com
