SIMON PROPERTY GROUP STOCK OFFLINE

The JAG portfolio includes globally renowned dining, from Michelin-starred fine dining to fast casual eateries. 'JAG's involvement in curating new to market culinary experiences befitting of these iconic shopping destinations is an exciting step in that process and we are hopeful that success at these locations will lead to new opportunities for each of us going forward.' 'We are proud of this announcement, which continues our commitment to owning and developing properties with premier dining and mixed-use experiences,' said Jonathan Murphy, Co-President, Simon Malls. Our goal is to inspire and delight both local and destination-driven guests looking for something new.'

Our innovative and diverse portfolio of restaurant brands put us in a unique position to build incredible culinary anchors in these key markets and developments. 'Simon Property Group is the preeminent retail property owner with a significant footprint in cities where we are looking to grow. For these reasons, give Simon Property Group stock a chance.'Now is a time of dynamic growth and investment in our future,' said Sam Bakhshandehpour, President of José Andrés Group. Going forward, it is the arguably the only shopping mall operator in the country that is well-capitalized to transform its shopping malls into recreational/essential service mega-centers the community will love. It survived the COVID-19 pandemic in-tact while many of its competing locations fell out of business. Overall, its stock is still relatively cheap at 34 times earnings than the average REIT stock's 50 times earnings. It has close to $32 billion in cash, investment equity, and net property value to offset the approximately $26 billion in debt and mortgages discussed earlier. After over $13 billion in debt and equity infusions, the firm is more capitalized than ever. Although its FFO went down from $12.04 a share in 2019, Simon Property Group estimates it can recover some losses and generate up to $9.75 in FFO this year.Įven during the darkest days of the pandemic, the company's vacancy rate amounted to less than 10%. It was more than enough to sustain its $6 dividend per share payout, which amounts to an impressive annual yield of 4.5%. Moreover, Simon Property Group pays about 10 times more in property taxes than nearby e-commerce fulfillment centers due to its larger size, meaning it is already competing on an unequal footing.ĭespite such duress, the company still generated $9.11 per share in funds from operation ( FFO).

SIMON PROPERTY GROUP STOCK OFFLINE

It also had to pay $700 million in local property taxes with no relief for days offline whatsoever. Last year, the company couldn't operate for one-fifth of the year's shopping days. Simon Property Group is probably the only REIT that can pull this off due to its capitalization. Cheap debt allows the company to take on additional mortgages at low risk and refinance existing liabilities.

Recently, it also raised 750 million euro in a debt offering at an even lower 1.125%. In January, the company raised an additional $1.5 billion in debt financing at really low rates of 1.75% to 2.2%. The average interest rate on those liabilities, however, amounts to just 2.94%. Right now, the company has over $26.7 billion in mortgage and long-term debt. Last year, it spent $400 million on refurbishing, yielding a solid 8% cash-on-cash yield.įuelling Simon's future plans are rock bottom interest rates. The real estate developer's efforts to redevelop its shopping malls have already paid off. It must be noted that management is identifying the right properties on a case-by-case basis.įurthermore, Simon Property Group is in talks with Amazon ( AMZN -0.70%) to turn its empty Sears and JCPenney stores into e-commerce fulfillment warehouses for the former. Some of the key projects undergoing transformation as 'mixed-use destinations' include the Phipps Plaza in Atlanta, GA, Northgate in Seattle, WA, and Brea mall in Orange County, CA.

Simon property group stock