1 Reason Simon Property Group Could Keep Winning
The coronavirus pandemic was a huge headwind for companies that focus on physical retail assets. That includes retailers and their landlords, with mall-owning real estate investment trusts (REITs) like Simon Property Group (NYSE: SPG) feeling material financial pain. But as 2021 gets underway, investors are betting that Simon's future has brightened. Here's why, and why the trend is likely to continue.
In an effort to slow the spread of the coronavirus, governments around the world ordered non-essential businesses to shut down. Going to a mall is pretty non-essential, so business ground to a halt, setting up a situation in which many retailers couldn't -- or chose not to -- pay rent to the real estate investment trusts that owned the properties they operated in. It wasn't a pleasant period, and given the uncertainty around the novel illness, investors chose to sell mall REITs like Simon Property Group.
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Source Fool.com
