On Mar 22, 2013, we reiterated our long-term recommendation on
Simon Property Group Inc. ( SPG ) at Outperform.
This reflects the company's strong fundamentals, robust growth
projections and a healthy dividend yield that offers an enticing
upside potential going forward.AGREE RLTY CORP (ADC): Free Stock Analysis
ReportMACK CALI CORP (CLI): Free Stock Analysis
ReportCOUSIN PROP INC (CUZ): Free Stock Analysis
ReportSIMON PROPERTY (SPG): Free Stock Analysis
ReportTo read this article on Zacks.com click here.
Simon Property is one of the leading publicly traded retail real
estate companies in the U.S. with assets in almost all retail
distribution channels. Furthermore, the company's international
presence gives it a more sustainable long-term growth prospect than
its domestically focused peers.
Simon Property generally enters into long-term leases with
companies, which protect it from short-term market swings that have
weighed on other players in the industry. The company has one of
the strongest comparable sales per square foot in the industry. Its
upscale properties and their strategic locations attract large
number of high-end retailers for opening their outlets.
In February, Simon Property reported strong fourth quarter 2012
results with FFO per share of $2.29, substantially beating the
Zacks Consensus Estimate by 12 cents. This also compared favorably
with the year-ago quarter's FFO per share of $1.91. The results
were driven by an increase in rental revenue and occupancy.
Noteworthy acquisitions and addition of premium development and
redevelopment projects during the quarter further fueled the
company's prosperity. These moves are expected to strengthen Simon
Property's presence in both national and international markets and
boost its top-line growth going forward.
In addition, the company has a solid balance sheet with adequate
liquidity and has announced a 21.1% year over year hike in its
quarterly dividend rate, reflecting a hike for 6 straight
Following the release of the fourth quarter and full year 2012
results, the Zacks Consensus Estimate for full year 2013 moved up
1.7% to $8.55 per share with 11 out of 14 estimates moving
north. Also, the Zacks Consensus Estimate for full year 2014
climbed 2.9% to $9.18 per share, driven by 3 positive estimate
revisions. With the Zacks Consensus Estimates moving up for both
full year 2013 and 2014, Simon Property now has a Zacks Rank #2
Other Stocks to Consider
Other REITs that are currently performing decently include
Agree Realty Corp. ( ADC ), Cousins
Properties Incorporated ( CUZ ) and
Mack-Cali Realty Corp. ( CLI ), all carrying a
Zacks Rank #2 (Buy).