Simon Property Group Stock News

Simon Property Group, Inc. (NYSE:SPG ) Q2 2024 Earnings Conference Call August 5, 2024 5:00 PM ET Company Participants Thomas Ward - Senior Vice President, Investor Relations David Simon - Chairman, Chief Executive Officer and President Brian McDade - Executive Vice President and Chief Financial Officer Conference Call Participants Jeff Spector - Bank of America Samir Khanal - Evercore ISI Cait...

Simon Property Group lowered annual forecast for net income and missed second-quarter estimates for funds from operations (FFO) on Monday.

INDIANAPOLIS , Aug. 5, 2024 /PRNewswire/ -- Simon ®, a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations, today reported results for the quarter ended June 30, 2024. "We are pleased with our financial and operational performance in the second quarter," said David Simon, Chairman, Chief Executive Officer and President.

Real Estate Investment Trusts (REITs) are underperforming the market this year as concerns about the economy and interest rate remain. The closely watched iShares Global REIT ETF (REET) stock has risen by just 2.4% while the Vanguard Real Estate Index Fund (VNQ) is up by just 3.30%.

The next cycle for public REITs could be more similar to those of the 1990s and early 2000s than one of the past 14 years. In prior cycles, public REITs enjoyed a cost of capital that allowed for significant external growth, boosting cash flow and dividends per share. Many companies spent the past cycle shoring up their balance sheets to record low leverage and maintaining a low dividend payout...

Wall Street analysts have a bullish rating on SPG stock. I think such a rating substantially underestimates the underlying risks. SPG's generous dividends are a main draw here and have been a key source of its total return.

For years following the worst of the COVID-19 crisis, the Federal Reserve wrestled with blistering inflation. Unfortunately, it was a necessary evil.

Last week's action in the stock market might have signaled a long-awaited shift away from a focus on Big Tech in the stock market to overlooked pockets of value.