The rise of e-commerce has changed the shopping experience as it's driven efficiency and allowed a 24/7 shopping experience. Understanding a sector and what the trends are is incredibly important to an investment thesis. The narrative about e-commerce cannibalizing physical retail has been and will probably continue to be incorrect, which is bullish for SPG, and REITs in general After the recent appreciation heading into earnings, I wanted to examine my investment thesis and provide an update due to SPG trading at a significantly different valuation than several months ago. In that article, I discussed SPG's Q3 earnings and why I was still bullish. When SPG's dividend is factored into the equation, its total return has been 35.04% since October 31 st, 2023.

Since my last article on SPG ( can be read here) was published, shares have appreciated by 33.09% compared to the S&P 500, climbing 16.03%. I think the rally can continue, considering shares trade at a discounted valuation compared to other REITs, and they raised guidance on the Q3 earnings call, so an earnings beat would send an overly bullish signal.įollowing up on my previous article about Simon Property Group We're headed into earnings season, and SPG is coming off a double beat in Q3. The mall isn't dying, and shares of SPG continue to thrive. I believe that REITs could be a big beneficiary in 2024 due to a rate easing cycle as the worry about refinancing debt dissipates and investors looking for yield find a new home for capital sitting on the sidelines. While shares of SPG aren't as heavily discounted as they were in the middle of 2023, there could still be value to be extracted as SPG trades at 12.12x its funds from operations (FFO) per share and pays a 5.37% dividend yield. Simon Property Group ( NYSE: SPG) is back to pre-pandemic levels, and despite appreciating by 35.47% ($37.08) since October 27 th, I still think there is an opportunity here.

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