On the fundamentals, this company delivered an excellent quarter. They saw growth in sales for tenants, growth in rent, beat on FFO, raised guidance, and raised dividends. Its success is contrary to the narrative surrounding retail. I rarely share my top ideas for free.
Simon Property Group (SPG) delivered an excellent third quarter. Q3 FFO comes in at $2.89 per share. That’s up from $2.70 per share a year ago and beats estimates of $2.87. New guidance for the year comes in at “$11.17 to $11.22”. The old guidance was "$11.14 to $11.22”. Simon’s guidance for FFO includes negative non-recurring impacts of $.36 for the extinguishment of debt in Q2 2017 which would be stripped out in AFFO. The dividend goes up to $1.85 from $1.80 in the prior quarter. The market reacts by dropping SPG about 3.8% (as of writing). SPG’s performance should be a huge positive factor for the sector since it is the largest mall REIT by a substantial margin. On the earnings call, transcripts not yet available, SPG’s management referenced retail sales figures stating “…absolutely an underreporting going on”. They are arguing that the transition to online sales is not as fast as it seems because tenants have an incentive to report their transactions as online sales.
Source: Seeking Alpha
Related Articles:
- The Magnificent Marvelous Money Machine
- 5 Five-Star Dividend Stocks
- My Top 3 Investing Mistakes
- 6 Stocks Currently Trading Below their Fair Value
- The Wit and Wisdom of Warren Buffett
Dividend Raised, Beat On FFO, Strong Growth From 5% Yielding REIT
Posted by D4L | Monday, November 27, 2017 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.