Author Topic: SPG- Simon Property Group  (Read 8679 times)

Gregmal

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Re: SPG- Simon Property Group
« Reply #20 on: February 01, 2020, 01:51:03 PM »
I was referring to all the options, however I personally wouldn't sell calls against this. I dont like screwing with my upside on what are deemed to be high risk high reward investments.

I was more so referring to the at what price is this investable? question. You can get over $3 per share selling $100 puts due Jan 2021. I certainly wouldn't mind getting $3+ a share in exchange for maybe owning share with a $97 cost basis. I started buying this week and have a cost around 141 so if nothing else its a reminder that you can certainly get swept under really quick, but if you're fine with that its an easy investment. I was again looking at stuff like Seritage and it just reinforces what a bargain SPG is if you are ok investing in that space.


Gregmal

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Re: SPG- Simon Property Group
« Reply #21 on: February 02, 2020, 08:35:04 AM »
How strong are Simons locations?

https://www.cnbc.com/2019/10/01/heres-a-map-of-the-forever-21-stores-set-to-close.html

The store closure list released on Tuesday includes the Forever 21 store at the World Trade Center, owned by Unibail-Rodamco-Westfield, in New York. It has 18 locations owned by Westfield in total.

There are 16 Macerich locations on the list.

The list has 10 locations owned by Taubman, including its store at Beverly Center in Los Angeles. It has nine Tanger locations, which are in outlet centers, and eight from Washington Prime Group. It has seven CBL locations and six Pennsylvania REIT locations.

None of these landlords were immediately available to respond to CNBC’s requests for comment.


Notably with only one location on this list is Simon Property Group, the largest mall owner in the U.S. and also one of Forever 21′s biggest unsecured creditors, along with Brookfield Retail Partners. There are eight Brookfield stores on the list.

Also on the store closure list are Forever 21′s stores in SoHo in New York and at the Mall of America.

rogermunibond

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Re: SPG- Simon Property Group
« Reply #22 on: February 02, 2020, 09:38:12 AM »
Sounds like SPG and BAM are providing DIP funding for F21 operations in their malls.

Gregmal

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Re: SPG- Simon Property Group
« Reply #23 on: February 03, 2020, 05:29:57 AM »
Simon + a few buys Forever 21

The playbook?

https://www.cnbc.com/2019/07/31/simon-property-could-save-retailers-from-going-out-of-business.html

Simon added the mall owner “made a ton of money” in its Aeropostale deal.

We're certainly as good as the private-equity guys when it comes to retail
- David Simon



RAFA1989

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Re: SPG- Simon Property Group
« Reply #24 on: February 04, 2020, 08:51:22 AM »
Interesting news out today.

During the earnings call Bloomberg put out a piece mentioning merger talks between Simon and Taubman (another high quality mall owner).

https://www.bloomberg.com/news/articles/2020-02-04/simon-property-is-said-to-have-held-merger-talks-with-taubman


Gregmal

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Re: SPG- Simon Property Group
« Reply #25 on: February 10, 2020, 04:47:21 AM »
TCO is cheap too, their properties seem just as good as SPG, however their balance sheet is worse. Does it matter though - if malls go the way of bowling alleys, they are both screwed.

In my opinion, we are not in 7-8th inning, we are in the 2-3rd. Online sales are growing to 12%+ this year and are just getting started imo. I would not be surprised if we are at 50% we tweet 2030 and 2035. That means they many malls will either have to disappear or will have to fundamentally change. My guess is also they the privet to restaurants may not work, with the pivot to takeout. Some of the malls can be reconfigured to community centers or work life places, but there just too much mLl space to go around to keep everything productive. It is also questionable to me they after all this reinvestment needed, the total rents of the new mLl hybrids will really be higher than they were before the conversion. So all this capital recycling may just be a defensive move may not improve cash flows much.

My vote is that it’s a value trap.

Well Spek, I guess they agreed with you!

https://seekingalpha.com/news/3539970-simon-property-to-buy-controlling-stake-in-taubman-for-3_6b-in-cash

rogermunibond

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Re: SPG- Simon Property Group
« Reply #26 on: February 10, 2020, 06:10:17 AM »
If you're a luxury brand name looking for exposure to high end US retail, SPG has a near monopoly on the best malls.


Gregmal

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Gregmal

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Re: SPG- Simon Property Group
« Reply #28 on: April 08, 2020, 08:35:11 AM »
So this one has been smoked but I'm beginning to get more comfort with perhaps where things go in a "bad" scenario. Given a little bit of an assumption based on prior actions, is it theoretically more than a little likely that should many retailers get severely distressed, that Simon ends up owning a good chunk of retail businesses? So the hit to rent happens, but you also have a royalty/equity stake in the future of these businesses. Not dissimilar to Amazon/Ebay take chunks of fees down from any seller using their platform. The future or retail, whatever it may be, is impossible to exist, without Simon. Lenders will have to work with them, they are almost too big to fail. Should be interesting. Ive been adding reasonably last couple weeks.

BG2008

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Re: SPG- Simon Property Group
« Reply #29 on: April 08, 2020, 08:39:42 AM »
Greg,

I hope you're right.  I haven't touched malls since I tried to sell 3 of them during 2008.  My life and my bank accounts have thanked me for not getting involved.