Simon Property (SPG) Taps Debt Market With Senior Note Offering
Simon Property Group SPG announced the sale of $1.2-billion senior notes through its operating partnership, Simon Property Group, L.P. The offering expected to close on Jan 11, 2022, is subject to customary closing conditions.
This offering includes a $500-million aggregate principal amount of Floating Rate Notes due 2024 and a $700-million aggregate principal amount of 2.650% Notes, which will mature in 2032.
The operating partnership intends to use the proceeds from the offering to repay the outstanding balance under its $3.5-billion supplemental senior unsecured revolving credit facility as well as for general corporate needs.
SPG enjoys a solid balance-sheet position. It exited the third quarter of 2021 with $8 billion of liquidity. The latest offering will enhance Simon Property's financial flexibility and liquidity position, and help it navigate any eventuality and grab opportunities amid market turbulences.
Simon Property enjoys a wide exposure to retail assets across the United States and abroad. It is well poised to benefit from its superior assets at premium locations. Also, adoption of an omni channel strategy and its successful tie-ups with premium retailers have been encouraging.
In the past three months, shares of this currently Zacks Rank #2 (Buy) player have appreciated 22.9%, outperforming the industry's 5.4% growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Other Stocks to Consider
Some other top-ranked stocks from the REIT sector are Extra Space Storage EXR, Cedar Realty Trust CDR and Cubesmart CUBE.
Extra Space flaunts a Zacks Rank #1 (Strong Buy) at present. Shares of EXR have gained 29.7% in the past six months.
The Zacks Consensus Estimate for Extra Space’s 2021 funds from operations (FFO) per share has been raised 3.3% over the past two months. Over the last four quarters, EXR’s FFO per share surpassed the consensus mark on all occasions, the average being 5.9%.
The Zacks Consensus Estimate for Cedar Realty’s 2021 FFO per share has been raised 2.6% to $2.36 in the past two months. Over the last four quarters, CDR’s FFO per share surpassed the consensus mark twice and missed the same on the other two occasions, the average being 6.4%.
Currently, CDR sports a Zacks Rank of 1. Shares of Cedar Realty have appreciated 51.3% in the past six months.
The Zacks Consensus Estimate for Cubesmart’s 2021 FFO per share has been raised 2.4% over the past two months. Over the last four quarters, CUBE’s FFO per share surpassed the consensus mark on all occasions, the average being 7.1%.
Cubesmart flaunts a Zacks Rank of 1 at present. Shares of CUBE have rallied 13.5% in the past six months.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
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Simon Property Group, Inc. (SPG) : Free Stock Analysis Report
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