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Simon (SPG) Competes with Internet Purchase: Time to Hold?
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On Dec 9, 2016, we issued an updated research report on Simon Property Group, Inc. (SPG - Free Report) , the Indianapolis, IN-based retail real estate investment trust (“REIT”) which is engaged in acquiring, owning and leasing a diverse portfolio of shopping malls.
The REIT enjoys a diversified exposure to retail assets across the U.S. Also, the company’s international presence fosters more sustainable long-term growth compared to its domestically focused peers. This diversification, with respect to both product and geography largely insulates Simon Property from market volatility and helps it consistently post a decent performance.
In October, the company reported third-quarter 2016 funds from operations (“FFO”) of $2.70 per share, up from the year-ago quarter tally of $2.54. The Zacks Consensus Estimate for the quarter was $2.68. Growth in operating income and transformative redevelopments aided the results.
However, the company has to compete with increasing consumer purchases through the internet which has emerged as a pressing concern for retail REITs. While the company is striving to counter such pressure through various initiatives, the implementation of such measures require a decent upfront cost and therefore, would limit any robust growth in its profit margins in the near term.
Shares of Simon recorded a loss of 5.7% against a gain of 0.8% posted by the Zacks categorized REIT and Equity Trust Retail industry, year to date. Moreover, the company’s current-year estimates declined 1.6% to $10.69 per share over the past 30 days.
Simon Property currently carries a Zacks Rank #3 (Hold).
Seritage Growth Properties’ current-year FFO estimates have moved up 0.9% to $2.34 per share over the past 60 days.
DCT Industrial Trust’s current-year FFO estimates have moved up 2.3% over the past 60 days to $2.24 per share.
American Tower Corporation’s current-year FFO estimates have moved up 1.1% over the past 60 days to $5.55 per share.
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.
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Simon (SPG) Competes with Internet Purchase: Time to Hold?
On Dec 9, 2016, we issued an updated research report on Simon Property Group, Inc. (SPG - Free Report) , the Indianapolis, IN-based retail real estate investment trust (“REIT”) which is engaged in acquiring, owning and leasing a diverse portfolio of shopping malls.
The REIT enjoys a diversified exposure to retail assets across the U.S. Also, the company’s international presence fosters more sustainable long-term growth compared to its domestically focused peers. This diversification, with respect to both product and geography largely insulates Simon Property from market volatility and helps it consistently post a decent performance.
In October, the company reported third-quarter 2016 funds from operations (“FFO”) of $2.70 per share, up from the year-ago quarter tally of $2.54. The Zacks Consensus Estimate for the quarter was $2.68. Growth in operating income and transformative redevelopments aided the results.
However, the company has to compete with increasing consumer purchases through the internet which has emerged as a pressing concern for retail REITs. While the company is striving to counter such pressure through various initiatives, the implementation of such measures require a decent upfront cost and therefore, would limit any robust growth in its profit margins in the near term.
Shares of Simon recorded a loss of 5.7% against a gain of 0.8% posted by the Zacks categorized REIT and Equity Trust Retail industry, year to date. Moreover, the company’s current-year estimates declined 1.6% to $10.69 per share over the past 30 days.
Simon Property currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space include Seritage Growth Properties (SRG - Free Report) , DCT Industrial Trust Inc. and American Tower Corporation (AMT - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Seritage Growth Properties’ current-year FFO estimates have moved up 0.9% to $2.34 per share over the past 60 days.
DCT Industrial Trust’s current-year FFO estimates have moved up 2.3% over the past 60 days to $2.24 per share.
American Tower Corporation’s current-year FFO estimates have moved up 1.1% over the past 60 days to $5.55 per share.
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.
Zacks' Top Investment Ideas for Long-Term Profit
How you like would to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>