Let's talk about Simon Property Group.
Simon, the owner of retail shopping malls in 37 U.S. states, posted a 20% decline in quarterly profits, and scrapped its full-year profit guidance, after being forced to close more than 200 of its properties during the start of the coronavirus pandemic in March. Around 77 have been re-opened in states that have eased lockdown restrictions, the company said, and at least half will be up-and-running by next week.
The group said that, even with some of its key retail tenants unable to pay monthly rent amid the lockdown, it would still commit to a quarterly dividend, paid in cash, and fully expects its tenants to honor their lease commitments. However, it did not disclose rent collection data for April and May.
"The Board will declare a second-quarter dividend before the end of June and that dividend will be paid in cash," CEO David Simon told investors on a conference call late Monday. "We expect to pay out at least 100% of our taxable income in 2020 in cash."
Jim Cramer said if you're going to own a REIT, "Own Simon Property."
Catch the video above to learn why.
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