Is This Mall REIT Overdoing a Good Thing?
When something works, it is human nature to keep going back and doing the same successful thing again. Mall landlord Simon Property Group (NYSE: SPG) has seen material success in its efforts, with partners, to buy troubled retailers.
But there's a subtle and important difference with the rumored bid Simon and its partners have made for retailer Kohl's (NYSE: KSS). Is Simon taking a good thing too far?
Simon Property Group is a real estate investment trust (REIT), not a retailer. The relationship here is important, with Simon making money by collecting rent from retailers. They are two very different businesses, but Simon does have a very good view into what is and isn't working in the retail space at its roughly 200 malls and outlet centers. It also has a front-row seat from which to view the financial situations at the retailers within its collection of malls.
Source Fool.com
