On March 31, 2017, Equity Residential (EQR) owned 302 properties in ten states and the District of Columbia, comprising 77,498 apartment units.
In 2016, Equity Residential (EQR) completed $1.1 billion in development projects, a record for the company. It expects to complete $900 million in development projects in 2017.
Analysts gave SPG a mean price target of $202.45, implying an ~25.1% rise from its current level of $161.78.
Simon Property Group’s current price-to-FFO multiple is ~14.1x.
During 2016, Simon Property Group repurchased 1,409,197 shares at an average price of $181.14 per share.
Simon Property Group (SPG) maintained an effective overall borrowing rate on its debt for fiscal 2016 of ~3.4%, down 49 basis points compared to ~3.9% in 2015.
Because President Trump is not expected to raise the minimum wage, the profit margins of mall owners or smaller retail shops are expected to be on the higher side, increasing their ability to pay higher rents.
According to a survey conducted by the University of Michigan in April 2017, the Consumer Sentiment Index stood at 97.0 compared to 96.9 in March.
The hawkish interest rate environment has added to the woes of mall owners like Simon Property (SPG), as well as the REIT industry.
According to recent research conducted by Green Street Estimates, department stores need to shut down hundreds of stores in 2017.
On March 31, 2017, Simon Property Group’s business in the US stood at a hefty figure of 206 properties, including malls, premium outlets, and lifestyle centers.
On April 27, Simon Property Group (SPG) reported 1Q17 earnings per share of $1.53, a 2% beat of the consensus estimate of $1.50.
C.R. Bard, a leading multinational developer, manufacturer, and marketer of medical technologies, rose 19.5% on April 24 to new all-time high price levels.
While the Dodd-Frank Act was passed to avoid another financial crisis, it has crippled banks’ profitabilities over the years due to higher capital requirements.
HEDGING AGAINST INFLATION Property stocks and REITs have often been viewed as inflation hedges because expected inflation will affect prices of real estate, and rental income tends to rise along…
RETURNS AND RISKS OF REITS REIT and property stock performance has been relatively strong over the long term, especially when compared with traditional bond and equity indices. Since 1992, the…
COMPARING DIVIDEND YIELDS ACROSS ASSET CLASSES Since 1999, approximately half of the total return of the Dow Jones U.S. Select REIT Index has come from dividends. During periods of heightened…
To qualify as a REIT, a company must have most of its assets and income tied to real estate investment and must pay out almost all of its taxable income…
The basic concept of REITs originated with the business trusts that were formed in Massachusetts in the mid-19th century, when the wealth created by the industrial revolution led to a…
By Michael Orzano, Director, Global Equity Indices Publicly traded property stocks, including real estate investment trusts (or REITs) and real estate operating companies (or REOCs), allow investors to gain exposure…