Strong retail sales bode well for REITs that invest in shopping malls and community shopping centers. Positive results on Thursday allowed McMillan to raise his 12-month price target on Simon Property Group by $10 to $135 "in anticipation that demand for space in SPG's centers and rents will continue to increase over the next 12-18 months."
Shares of Simon Property rose 1% to $121.43 on Thursday. Kimco gained 1.2% to $19.31 and General Growth added almost 2% to $17.28.
S&P Equity Research said it expected June same-store sales -- or sales at stores open at least one year, a closely watched metric in the restaurant industry -- to rise 5.4% from the last year, while the actual gain was 8.1%. "In addition, our optimism was boosted by the ADP survey of private payrolls showing a gain 157,000 new jobs in June, significantly above the 78,000 new June jobs expected by consensus," McMillan said. -- Written by Miriam Marcus Reimer in New York. >To contact the writer of this article, click here: Miriam Reimer. >To follow the writer on Twitter, go to http://twitter.com/miriamsmarket. >To submit a news tip, send an email to: firstname.lastname@example.org.
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