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Simon Property (SPG) to Acquire 50% Interest in Jamestown
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Simon Property Group (SPG - Free Report) and Jamestown, a global real estate investment and management firm, recently announced a strategic partnership, which is expected to materialize before the end of this year, subject to regulatory nods and closing conditions.
The partnership is likely to benefit Simon by opening the doors to new value-creation avenues and simultaneously creating a ground for future growth in the investment management sector.
Simon will acquire a 50% interest in Jamestown from the latter’s founding partners — Christoph and Ute Kahl — upon the deal's completion. The founders will continue to be shareholders of Jamestown.
Jamestown will operate as an independent organization. The company will continue to be led by its CEO Matt Bronfman and president Michael Phillips. Both of them will retain their existing ownership in Jamestown.
Jamestown is known to have a 39-year track record and had more than $13 billion of assets under management as of Jun 30, 2022. Through the partnership, Simon will be able to drive its future densification projects with the help of Jamestown’s platform.
Also, with an experienced fund manager and mixed-use operator and developer, SPG will have the scope to capitalize on the growing asset and investment management businesses. Therefore, its partnership with Jamestown seems prudent.
Simon Property has been focusing on premium acquisitions and transformative redevelopments to enhance its portfolio and has invested billions in transforming its properties over the past few years.
In June 2022, SPG acquired an additional interest in Gloucester Premium Outlets from a joint venture partner for $14 million in cash consideration, including a pro-rata share of working capital, resulting in the consolidation of this property.
Additionally, Simon Property has been exploring the mixed-use development option, which has gained immense popularity in recent years as it helps capture the attention of people who prefer to live, work and play in the same area.
Furthermore, it capitalized on purchasing recognized retail brands in bankruptcy. Investments in them seem strategic for Simon Property as the brands have been generating a decent amount from digital sales.
With a solid balance-sheet position and ample financial flexibility, SPG is well-positioned to capitalize on long-term growth opportunities.
Shares of this Zacks Rank #3 (Hold) company have lost 0.8%, narrower than the industry’s decline of 9.5%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the retail REIT sector are Kimco Realty (KIM - Free Report) , Kite Realty Group Trust (KRG - Free Report) and SITE Centers Corp. (SITC - Free Report) .
The Zacks Consensus Estimate for Kimco Realty’s ongoing year’s FFO per share has been raised 1.3% over the past two months to $1.56. KIM currently holds a Zacks Rank #2.
The Zacks Consensus Estimate for Kite Realty Group Trust’s current-year FFO per share has moved 1.6% northward in the past two months to $1.85. KRG sports a Zacks Rank #1 (Strong Buy) presently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SITE Centers’ 2022 FFO per share has moved marginally upward in the past two months to $1.16. SITC presently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Simon Property (SPG) to Acquire 50% Interest in Jamestown
Simon Property Group (SPG - Free Report) and Jamestown, a global real estate investment and management firm, recently announced a strategic partnership, which is expected to materialize before the end of this year, subject to regulatory nods and closing conditions.
The partnership is likely to benefit Simon by opening the doors to new value-creation avenues and simultaneously creating a ground for future growth in the investment management sector.
Simon will acquire a 50% interest in Jamestown from the latter’s founding partners — Christoph and Ute Kahl — upon the deal's completion. The founders will continue to be shareholders of Jamestown.
Jamestown will operate as an independent organization. The company will continue to be led by its CEO Matt Bronfman and president Michael Phillips. Both of them will retain their existing ownership in Jamestown.
Jamestown is known to have a 39-year track record and had more than $13 billion of assets under management as of Jun 30, 2022. Through the partnership, Simon will be able to drive its future densification projects with the help of Jamestown’s platform.
Also, with an experienced fund manager and mixed-use operator and developer, SPG will have the scope to capitalize on the growing asset and investment management businesses. Therefore, its partnership with Jamestown seems prudent.
Simon Property has been focusing on premium acquisitions and transformative redevelopments to enhance its portfolio and has invested billions in transforming its properties over the past few years.
In June 2022, SPG acquired an additional interest in Gloucester Premium Outlets from a joint venture partner for $14 million in cash consideration, including a pro-rata share of working capital, resulting in the consolidation of this property.
Additionally, Simon Property has been exploring the mixed-use development option, which has gained immense popularity in recent years as it helps capture the attention of people who prefer to live, work and play in the same area.
Furthermore, it capitalized on purchasing recognized retail brands in bankruptcy. Investments in them seem strategic for Simon Property as the brands have been generating a decent amount from digital sales.
With a solid balance-sheet position and ample financial flexibility, SPG is well-positioned to capitalize on long-term growth opportunities.
Shares of this Zacks Rank #3 (Hold) company have lost 0.8%, narrower than the industry’s decline of 9.5%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the retail REIT sector are Kimco Realty (KIM - Free Report) , Kite Realty Group Trust (KRG - Free Report) and SITE Centers Corp. (SITC - Free Report) .
The Zacks Consensus Estimate for Kimco Realty’s ongoing year’s FFO per share has been raised 1.3% over the past two months to $1.56. KIM currently holds a Zacks Rank #2.
The Zacks Consensus Estimate for Kite Realty Group Trust’s current-year FFO per share has moved 1.6% northward in the past two months to $1.85. KRG sports a Zacks Rank #1 (Strong Buy) presently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SITE Centers’ 2022 FFO per share has moved marginally upward in the past two months to $1.16. SITC presently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.