Simon Property Group, A Barometer For Retail
Simon is a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Their properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales.
Simon also owns 5 of the top largest malls in the US.
On Friday SPG reported earnings that were short of analysts expectations. The SPG reported revenue of $1.46 billion in the period vs. expectations of $1.5 billion.
For 2018, the company reported funds from operations of $4.32 billion, or $12.13 per share, while Wall Street was expecting $12.30 to $12.40 per share.
Simon Property expects full-year funds from operations in the range of $12.30 to $12.40 per share.
Simon, the largest mall owner in the U.S., has like its peers been grappling with how to deal with an onslaught of store closures from tenants big and small, ranging from Sears to Starbucks SBUX ' Teavana.
"There are some retailers out there that we're nervous about," Simon Property Group SPG CEO David Simon said Friday during a call with analysts after the company reported earnings, though he didn't name those companies. "We are concerned about a few [retail bankruptcies] that should shake out in the first quarter."
Sow what does this all mean, lets go to charts to find out?
On the monthly chart, price should negative divergence and broke the monthly up trendline all the way back in the Fall of 2016. Also the pink dashed line is a major support-resistance line. Lastly, price is in the process of leaving the monthly supply zone at $185.
Thus, the chart suggests price will fall to the monthly demand zone at $115.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
I had no idea Simon owned so many malls.
A great stock to keep on your radar for info purposes.
Retail is suffering due to the the move away from department store and focus on more experiences around the community. I remember shorting this one at the height of the financial crisis!
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And due to the Amazon affect. Nice trade in 2007. I have SPG on my watch list as I would like to short it this go around, so I need to see what the option liquidity is looking like first.