Inside Bar (Bullish)
|Bid||63.35 x 1300|
|Ask||63.49 x 800|
|Day's Range||62.20 - 64.77|
|52 Week Range||42.25 - 164.46|
|Beta (5Y Monthly)||1.36|
|PE Ratio (TTM)||9.79|
|Earnings Date||Aug 10, 2020|
|Forward Dividend & Yield||5.20 (8.13%)|
|Ex-Dividend Date||Jul 09, 2020|
|1y Target Est||86.14|
PoolCorp, Simon Property Group, HP, Dell Technologies and Apple highlighted as Zacks Bull and Bear of the Day
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]
(Bloomberg) -- Competition to buy retailer Brooks Brothers Group Inc. will allow the company to fund its reorganization in bankruptcy with an $80 million loan that carries a zero interest rate and no closing fees.ABG-BB LLC, a partnership between Authentic Brands Group LLC and mall landlord Simon Property Group Inc., will provide the loan. The generous terms reflect competition between that group and WHP Global, a brand-buying company backed by distressed debt giant Oaktree Capital Management LP, Garrett Fail, the retailer’s lawyer, said during a court hearing Friday.“I’m convinced the terms will be the best that can be achieved,” Fail told U.S. Bankruptcy Judge Christopher Sontchi during the company’s first court hearing, which was held by telephone.Sontchi said he would sign an order allowing the company to initially borrow $60 million. The company will return to court in the coming weeks to get permission to draw the rest of the money, which will be used to fund operations case while Brooks Brothers tries to find a buyer.Before filing for bankruptcy, Brooks Brothers had arranged a $75 million DIP loan from WHP Global, owner of the Joseph Abboud and Anne Klein brands. The new loan will provide $80 million, eliminate an early repayment penalty and give the company more time to close any sale arranged as part of the bankruptcy case, Fail said.Lenders who make so-called debtor-in-possession loans often have an advantage when trying to buy a company out of bankruptcy. Such loans almost always carry a higher interest rate than a non-bankrupt company would be charged.“This is a very favorable if not unprecedented economic DIP,” said Kelley A. Cornish, a lawyer for ABG-BB, LLC the name of the joint venture between Authentic Brands and Simon Property.Brooks Brothers will organize a court-supervised auction in the coming weeks that should attract a lot of competition, Fail said“We have had active discussions with multiple bidders,” Fail said.As it struggled to restructure outside of court, the company closed 51 stores and shut down manufacturing in Massachusetts, North Carolina and New York. When Brooks Brothers filed bankruptcy July 8 only 18 stores were open in the U.S. The company has 1,400 locations in 45 countries. Because of the pandemic, the company has furloughed 4,025 workers.The case is Brooks Brothers Group Inc., 20-11785, U.S. Bankruptcy Court for the District of Delaware.(Updates to add winning lender in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
REITs can be attractive to income-oriented investors because they are required to pay out at least 90% of their taxable income to shareholders.
The ratings on five P&I classes were affirmed due to the pool's share of defeasance and the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), being within acceptable ranges. As of the June remittance statement, The Dover Mall and Commons loan was more than 60 days delinquent and the Albany mall loan was between 30 -- 59 days delinquent.
Investors need to pay close attention to Simon Property (SPG) stock based on the movements in the options market lately.
Is it time to rain on the parade? Or is it time to buy into the markets? That’s what investors must decide. And according to Wall Street banking giant Goldman Sachs, they may need to make up their minds quickly.Goldman starts by pointing out what we all know, that the S&P 500 is up almost 40% from its low point in the last week of March. That’s an amazing rally, but the bank’s analysis team warns that 2H20 may not be quite as upbeat as the first six months. The bank’s team predicts an annualized growth rate of 25% in Q3, down from the 33% forecast earlier.The rise in corona cases and the reinstatement of social and economic restrictions forced the change in outlook. According to Jan Hatzius, chief economist, “The recent declines are minor compared to the collapse in activity in March and April, but they clearly indicate a break from the steady upward trend since mid-April.”The bank believes the downward trend will be real, but likely short-lived; even red-state Texas has imposed a mask mandate. It is like that as state and local authorities nationwide, along with more grass-roots initiatives, push for increased precautions, the corona tide will slowly recede. So, markets may go any which way. And to protect your portfolio, Goldman Sachs’ stock experts have tapped two equities that you should buy – and one that you should avoid. We’ve pulled up the details from the TipRanks database, to find out what lies behind these calls.Simon Property Group (SPG)First on the list is a real estate investment trust, Simon Property Group. This company is both the largest shopping mall operator in the US, and the largest retail REIT. In normal times, owning and operating high-end shopping destinations is a lucrative niche; but with the coronavirus and the shutdowns, SPG has faced heavy headwinds in the first half of this year.Start with Q1. The company reported earnings below expectations, and a 20% drop in profits. The key Funds from Operations metric, which is used by analysts as an indicator of the general health of REITs, was down over 8% year-over-year, to $980.6 million. At the same time, the company started reopening its properties – in line with local policies – in the first half of May, and this week announced a $2 billion issue of senior notes, sold in three tranches due in 2025, 2030, and 2050.As part of the mixed picture for SPG, the company also slashed its dividend payment by 38%, from $2.10 to $1.30. The new dividend was declared on June 29, and represents an annualized payment per share of $5.20. At that rate, despite the cutback, the yield remains an impressive 7.54%.The company’s liquidity and dividend got the notice of Goldman Sachs. In the bank’s report on REITS, they recommend buying SPG. Analyst Caitlin Burrows writes, “We believe that the size and strength of SPG’s balance sheet is a positive differentiator for the company. Given its A rating by S&P, we expect SPG to access the unsecured market at attractive pricing in 2020 and further bolster its liquidity position.”Caitlin puts a $94 price target on SPG, suggesting the stock has a 41.5% upside for the coming year.Overall, SPG gets a Hold from the analyst consensus – Wall Street is inclined toward caution here, where Goldman Sachs is willing to take a risk. The stock has 13 recent reviews, breaking down to 4 Buys, 8 Holds, and 1 Sell. The shares are selling for $66.69, and the average price target of $80.08 indicates a potential upside of nearly 21% over the next 12 months. (See SPG stock analysis on TipRanks)Brixmor Property (BRX)Next on our list, Brixmor Property, is another big name in retail property ownership. Brixmor is decidedly mid-market, where SPG above is high-end; BRX’s top three tenants are TJ Maxx, Kroger, and Dollar Tree. The company has built a strong niche in the mid-market, however, and came into 2020 with a solid position: over 400 shopping centers, with more than 71 million leasable square feet.The nature of Brixmor’s business helped ensure a steady stream of shoppers, even during the height of the corona crisis. With Kroger as the 2 tenant, the company did not see rental income slip as much as some other REITs. EPS slipped only slightly sequentially, from 47 to 46 cents per share in Q1. On a negative note, management suspended the dividend payment starting in Q1, stating that they would revisit the policy on a quarterly basis going forward.The company has been taking efforts to shore up liquidity, and in June closed a purchase offer on existing senior notes due in 2022. The sale brought in over $182 million, or 36.5% of the outstanding principal amount on the notes.Goldman Sachs' Caitlin Burrows expressed her confidence in the strength of the company's portfolio, noting “BRX owns a portfolio of Open Air properties across the United States, which we believe will be an advantage in this current retail environment. Strip Centers offer competitive retail supply versus enclosed malls on the basis of pricing and also benefit from higher exposure to essential tenants as well as the concentration of retailer store openings which are among BRX’s top 40 tenants.”To this end, Caitlin rates BRX a Buy along with an $18 price target. This implies a 37% one-year upside.The analyst consensus here is a Moderate Buy, based on 6 Buys, 7 Holds, and 1 Sell set in recent weeks. Shares are selling for $12.46, and the average price target of $13.68 suggests a 10% upside from current levels. (See BRX stock analysis on TipRanks)Macerich Company (MAC)Goldman Sachs' Caitlin Burrows isn’t all bullish on REITs. She is also initiated coverage on Macerich, another retail-oriented real estate trust, with a Sell rating. Macerich is the third largest owner/operator in the US shopping mall sector, and boasts over 50 million square feet of leasable retail space.After a strong fourth quarter, Macerich saw earnings drop sharply during the corona crisis. Q1 EPS was 81 cents, down over 18% from Q4. Top-line revenues also slipped, by 6%, to $221 million. The stock’s share price has behaved as might be expected – MAC collapsed badly during the Feb-March bear market, and still has not recovered. The stock is down 59% from its February levels.At the same time, there are some bright spots. Macerich in mid-June announced that all of its retail properties were open for business again, a positive leading indicator for 2H20. And, at the end of May, the company declared its regularly quarterly dividend of 50 cents per share – but there was a twist. The dividend was paid partly in cash – up to 10 cents per share – and the balance in shares of common stock.That was an important point for Burrows. The analyst laid out her view of MAC as follows: “We believe MAC’s high portfolio quality is overshadowed by its elevated leverage, limited access to debt, and potential dividend risk.”Looking at details, Burrows noted of the company’s leverage: “MAC’s leverage has been negatively impacted by lower EBITDA over the past few years.” And about the dividend, Burrows acknowledges the current hybrid payment but is not sanguine of the future: “Having reduced the total common stock dividend less than peers, there could be further dividend reductions given the company’s pressured balance sheet and liquidity.”This is the stock that Goldman says to Sell. In line with that, the bank puts a $6.50 price target, suggesting a downside for the coming year of 21%.Overall, the Moderate Sell rating on MAC is based on 7 Holds and 3 Sells from the analyst consensus. At $8.25, and with an average price target of $8.22, the stock is not going to move from here, at least according to these analysts. (See MAC stock-price forecast on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Amid a low interest-rate environment, Simon (SPG) boosts liquidity and addresses near-term debt maturities with three series of senior notes sale.
Simon Property Group is selling $500 million of 3.500% senior notes due September 2025, $750 million of 2.650% senior notes due June 2030, and $750 million of 3.800% senior notes due June 2050. In this daily bar chart of SPG, below, we can see that prices were in a downtrend long before the pandemic weakness in February and March. Trading volume has been heavy since March but the movement of the On-Balance-Volume (OBV) line has been very uneven and tells me that there is both aggressive buyer and aggressive selling.
In a buy-your-business partner move, Simon Property Group (NYSE: SPG) might soon be one owner of bankrupt clothing retailer Lucky Brand Dungarees. The real estate investment trust (REIT), which specializes in shopping malls, jointly with privately held Authentic Brands Group owns SPARC Group. SPARC has made a stalking horse bid for "substantially all" of Lucky Brand's assets following its bankruptcy declaration on July 3.
Simon, a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations, announced today that its majority-owned operating partnership subsidiary, Simon Property Group, L.P. (the "Operating Partnership"), has agreed to sell:
In a record-setting year for retailer bankruptcies, the latest company to file is Lucky Brands, a jeans retailer that is owned by private-equity firm Leonard Green & Partners. The retailer has already found potential buyers for its assets and intellectual property—and those buyers have an interesting roster of owners. The Los Angeles-based company had $182 million in loans and revolving credit facilities when it filed for Chapter 11 bankruptcy on July 3.
The stock market has rallied sharply since the March lows, and the tech-heavy Nasdaq has never been higher. With that in mind, here's why Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) and Simon Property Group (NYSE: SPG) should be on the radar of patient investors who are willing to ride out the short-term ups and downs. It's not like Berkshire Hathaway to underperform the market during tough times.
It was a good month for mall owners, but a volatile one. Here's what's going on that has investors starting to rethink this REIT niche.
Rating Action: Moody's affirms five and downgrades five classes of COMM 2012- CCRE4. Global Credit Research- 01 Jul 2020. Approximately $863 million of structured securities affected.
Simon Property Group (NYSE: SPG) shares are trading higher on Wednesday after Goldman Sachs reinstated its Buy rating on the stock and announced a price target of $94 per share.Simon Property Group is the second-largest real estate investment trust in the United States. Its portfolio includes an interest in 207 properties: 106 traditional malls, 69 premium outlets, 14 Mills centers (a combination of a traditional mall, outlet center and big-box retailers), four lifestyle centers and 14 other retail properties.Simon's portfolio averaged $693 in sales per square foot over the past 12 months. The company also owns a 21% interest in Klepierre, a European retail company with investments in shopping centers in 16 countries, and joint venture interests in 29 premium outlets across 11 countries.Simon Property shares were trading up 2.25% at $69.92 at the time of publication on Wednesday. The stock has a 52-week high of $165.48 and a 52-week low of $42.25.Latest Ratings for SPG DateFirmActionFromTo Jul 2020Goldman SachsReinstatesBuy Jun 2020StifelMaintainsHold Jun 2020JP MorganMaintainsNeutral View More Analyst Ratings for SPG View the Latest Analyst RatingsSee more from Benzinga * Macy's Reports Mixed Q1 Earnings, CEO Says Another Shutdown Not Anticipated * FedEx Trades Higher On Q4 Earnings Beat * Why Alterity Therapeutics Stock Is Trading Higher Today(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Simon Property Group (NYSE: SPG) is conserving financial resources by reducing its quarterly dividend. As a real estate investment trust (REIT), Simon is obligated to hand out at least 90% of its net profits as shareholder dividends. The dividend cut was announced within an operational update issued by the company.
Simon's (SPG) announcement of dividend and reopening of majority of its retail properties in the United States lessens concerns about its cash flows.