Simon Property Group Just Saved Itself from Disruption
Due to the ever-soaring popularity of e-commerce, about 25% of America's shopping malls face extinction over the next three to five years. Decades of over-construction made the commercial real estate industry sensitive to a drop in physical retail demand. According to analysts' estimates, only one quarter of the 1,100 shopping malls in the country are needed to serve consumers.
In a turbulent sector where weaker players could go bankrupt, it's always good to go long on the firm with the biggest market share. That place goes to Simon Property Group (NYSE: SPG). The real estate investment trust (REIT) owns or holds interest in 203 commercial properties, including malls, premium outlets, and other retail properties, across the country's most densely populated areas.
Not only does the firm have an ambitious turnaround plan, but its stock is trading at a bargain. Here are a couple of reasons why Simon Property Group can continue to be a fantastic income-generating stock going forward.
Source Fool.com
