This Passive Income Stock Could Have a Major Breakout in 2023
Enclosed malls are complicated assets. The success or failure of individual tenants can impact the overall mall and location issues and retail trends can also play an outsized role in how the mall does. When you add in the complications created by something as big as the negative effects of the COVID-19 pandemic, it's easy to see why some businesses and some mall real estate investment trusts (REITs) got pushed into bankruptcy court.
Mall REIT giant Simon Property Group (NYSE: SPG) muddled its way through the crisis reasonably well, which is a testament to its abilities and the strength of its portfolio of assets. What's even better, Simon Property Group is getting ready to show just how strong its portfolio really is.
Enclosed malls have been broadly out of favor for a number of years, falling victim to the so-called retail apocalypse. Put simply, the concern is that the shift toward online shopping will make going to the mall an obsolete pastime. There's a grain of truth to this concern. E-commerce has trended broadly higher for several years and continues to capture share of the retail market. But the great majority of shopping is still accomplished in physical stores, and frankly, humans are social animals and malls are great places to get together.
Source Fool.com
