This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Rocket Stocks to Buy This Week

Simon Property Group

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

$32 billion retail real estate investment trust Simon Property Group (SPG) is another name that's seen pressure from its positioning. With exposure to the troubled commercial real estate market, it's no surprise that investors have been wary of SPG's wherewithal -- especially as outwardly similar peers dealt with bankruptcies. But this REIT's risks have been overplayed.

Like most REITs, Simon Property Group is more of an income generation vehicle than a way to gain exposure to commercial real estate. The firm signs on tenants with long-term triple-net leases that essentially insulate SPG from most of the risks that come from the ebb and flow of the real estate market. As a result, the only real economic stressors on the firm come in the event of a tenant going out of business. Given that most tenants are large retail chains, that's a rarely rare event even in the height of a recession.

Right now, Simon is in solid financial shape. The firm has a liquid balance sheet with more than $2 billion in cash and investments. Investors who held SPG through the recession took valuation hits as the firm wrote down its real estate assets. While that book value can't go back up, the result is a balance sheet that grossly understates SPG's real assets. Investors should welcome that conservatism.

They should also like the income generation; SPG currently pays out a 2.9% dividend yield. Built-in inflation adjustments in the firm's leases should keep this stock a step ahead of the diminishing buying power of the dollar.

>>Large-Cap Stocks With Room to Grow Dividends

3 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,207.86 -71.88 -0.42%
S&P 500 1,993.85 -16.55 -0.82%
NASDAQ 4,521.0760 -58.7130 -1.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs