Has This Mall REIT Hit the Wall?
Simon Property Group (NYSE: SPG) got slammed hard by government efforts to slow the spread of the coronavirus in 2020. With things getting back to normal in 2021, the real estate investment trust's (REIT) business rebounded strongly. Guidance for 2022 suggests that the rebound is over, but this could just be a pause as the company gets its business back on a more normal path.
When the pandemic started to spread around the world in 2020, nonessential businesses were forcibly shut, people were asked to work from home, travel declined, and people practiced social distancing. Basically, malls were no-go zones. Weak retailers went bankrupt or asked for rent concessions, with some forcing landlords to fight in court for rents they were owed. It was a very ugly period, and Simon cut its dividend.
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Source Fool.com
