|Bid||165.11 x 1000|
|Ask||0.00 x 800|
|Day's Range||172.17 - 175.52|
|52 Week Range||145.78 - 191.49|
|Beta (3Y Monthly)||0.63|
|PE Ratio (TTM)||23.50|
|Earnings Date||Feb 1, 2019|
|Forward Dividend & Yield||8.00 (4.62%)|
|1y Target Est||197.58|
Despite a severe industry slump, Realty Income (NYSE:O) continues to thrive. The San Diego-based real estate investment trust (REIT) just declared its 583rd monthly dividend amid ongoing revenue and profit growth. O stock certainly has stood out. Many of its peers such as Kimco Realty (NYSE:KIM) and Simon Property Group (NYSE:SPG) have struggled in recent years. However, Wall Street has taken notice and as a result, the stock price has seen substantial increases over the last year. For this reason, prospective buyers should look past the rising dividend before buying Realty Income stock. * 7 Retail Stocks to Buy for the Rise of Menswear ### Realty Income Thrives Realty Income hit a milestone this month. In declaring its 100th hike in its monthly dividend, the payout for each month has reached 22.55 cents per share. It also marks its 583rd monthly dividend payment since the company began making payout about 50 years ago. It also stands out by paying dividends monthly. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As a retail REIT, its industry has faced some of the toughest time in its history. Faced with competition from online shopping, tenants have vacated retail spaces in droves. As a result, once thriving retail spaces have become derelict or have converted to other uses. Fortunately for Realty Income, brick-and-mortar retail has not died, it is merely shrinking. Also, Realty Income serves tenants that sell products and services less conducive to online retailing. This includes properties such as pharmacies, movie theaters, and so-called "dollar store" retailers. Moreover, most deals involve agreements known as triple-net leases. Hence, tenants take on the cost of taxes, maintenance, and insurance. The REIT has also diversified into industrial, office, and agricultural property types. These now make up about 19% of Realty Income's property holdings. These factors should help O stock continue to thrive. Despite industry challenges, it has maintained a compound average annual return of 16.3% since 1994. With this continuing prosperity, the 100th dividend increase may just be the beginning. ### Beware the Rising O Stock Price However, when one buys into a shrinking industry, it becomes more critical that investors buy at a low price to ensure they come out ahead. Despite serious industry challenges, this stock will not come cheap to investors. The equity spent most of 2018 in a recovery mode. As a result, the stock now stands at $65 per share, close to its 52-week high. Even on a forward basis, this takes Realty Income stock to a price-to-earnings (PE) of around 46. Such a multiple might appear reasonable for a high-growth company in an emerging high tech field. However, Realty Income operates in a shrinking industry that expects 8.7% profit growth for this year. Given the REIT's unlikely success, it deserves a higher multiple than its peers. Still, under those conditions, a 46 forward PE seems quite expensive. Moreover, investors need to put the dividend in perspective. At a 4.2% yield, that comes in at almost double the S&P 500 average. However, the average dividend yield for equity REITs comes in at just under 4.4%. Hence, O stock actually pays a below average dividend yield. While this payout also points to the company's success, it serves as another confirmation that the stock price has moved ahead of itself. ### Final Thoughts on O stock Realty Income thrives in a declining industry. However, with the high PE and the average dividend yield, investors should consider staying away for now. Amid falling demand for its particular type of real estate, Realty Income has continued to thrive. The REIT leases to clients less affected by online retail. It has also moved into other property types. This has allowed the REIT to stay on a growth path. Still, Wall Street recognizes its success. As a result, the stock has become an expensive equity in a consolidating industry. I believe Realty Income will thrive for decades to come. However, at its current earnings multiple, I would look for cheaper REITs operating in less challenged sectors. As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Apple Should Consider Buying * 7 Beaten-Up Housing Stocks Due for a Bounce Back * Take Buffett's Advice: 5 Vanguard Funds to Buy Compare Brokers The post Realty Income Stock: Unlikely Success, Expensive Valuation appeared first on InvestorPlace.
Despite the evidence that real estate investment trusts (REITs) actually do well during periods of tightening, the sector has been hit particularly hard as the Federal Reserve has ratcheted-up rates. Over the last six months, the Vanguard Real Estate ETF (NYSEARCA:VNQ) is down by roughly 5%. That decline plays into the idea that when rates rise, REITs fall before snapping back. The only problem is market volatility has prevented the snap-back. That's left plenty of big-time and high-yielding bargains in the sector. And with the rising market volatility, the Fed may be stepping off the brakes. Already, Chairman Jerome Powell has turned a bit dovish and the lack of inflation means that the Fed doesn't need to tame the economy like it was doing. For investors, this could be the go-ahead for many high-yielding sectors, including REITs. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Top 10 Global Stock Ideas for 2019 From RBC Capital With that, here are five REITs to buy that could run-up big for the rest of the year. ### Digital Realty Trust (DLR) Source: Shutterstock Dividend Yield: 3.79% There's no denying that the world continues to become more digital. Technology has invaded our lives like never before. And all of that, from cloud computing to mobile commerce, requires one thing. And that's tons and tons of server computers. The problem is owning specialized buildings and all that necessary hardware to keep them running is a very expensive proposition for many firms. This is especially true for smaller startups. That's where Digital Realty Trust (NYSE:DLR) comes in. DLR owns over 195 data centers across the globe. Here, the REIT hosts firms' web and cloud services, keeps the data centers cool and running smoothly, then sits back and collects a fee from its tenants. Those tenants include a who's who of some of the largest corporations on the planet. Top customers include AT&T (NYSE:T), Snap (NASDAQ:SNAP) and Oracle (NASDAQ:ORCL). The continued need for more data hosting has only benefited DLR over the long run. Since 2005, Digital Realty's core funds from operations -- the key metric of a REIT's health -- has grown at a CAGR of 13%. Those gains have led to 13 years' worth of dividend increases. Today, DLR yields close to 4%. With the future becoming more tech-focused, DLR could be one of the best REITs to hold for the long haul. ### Ventas (VTR) Source: Seattle Municipal Archives Via Flickr Dividend Yield: 5.23% If technology adoption is one of the biggest trends out there, then rising healthcare demand could be another. Our population continues to get larger and older as new drugs and therapies keep us alive. It stands to reason that more healthcare demand will require more places to provide care. Some of the best opportunities for investors could be with those firms that own all the real estate related to hospitals, doctors' offices, senior living facilities, etc. Ventas, Inc. (NYSE:VTR) is an elder statesmen of healthcare REITs. VTR owns roughly 1,200 different medically related buildings. The best part is that Ventas doesn't really deal with any of the regulation, drug pricing or costs related to healthcare. It simply owns the hospital building. That frees it from all the hassles that come along with medicine. Even better is that VTR has pivoted its portfolio toward life science and research, partnering with some of the largest medical schools/labs in the country. This provides it with high rents and long leases. All in all, VTR's focus has allowed it to scale-up and provide plenty of dividend growth and returns for investors. Since 2001, Ventas has been able to grow its dividend by 8% annually. Today, VTR yields a healthy 5.23%. * 10 Growth Stocks With the Future Written All Over Them Given the continued demand for healthcare, REITs like Ventas have plenty of opportunities to keep growing over the long haul. For investors, VTR stock makes a great addition to any portfolio. ### Extra Space Storage, Inc. (EXR) Source: Shutterstock Dividend Yield: 3.76% Americans have a lot of stuff. The job of providing a place to stash our Christmas decorations, R.V.s and vintage beanie babies falls to a subset of REITs that own self-storage facilities. At first glance, REITs like Extra Space Storage, Inc. (NYSE:EXR) seem pretty boring. That is until you realize the sheer amount of growth behind them. EXR has benefited from the last recession in spades and America's housing crisis. For starters, the trend toward downsizing has created a real space crunch for many people. People are buying smaller homes and many retiring Baby Boomers are looking to cash out the equity in the residences. But still, they are keeping much of their possessions. Secondly, while credit trends have improved, it's still pretty hard to buy a home in many areas. This has created a nation of renters. Extra Space Storage and its rivals have capitalized on this trend in a big way. The REIT owns a whopping 1,606 different self-storage facilitates across the country. And EXR continues to expand that portfolio via smart acquisitions. Most of the sector is owned by mom & pop operators, so there are plenty of opportunities to scale up. In doing that, Extra Space has steadily managed to grow its FFO and operating revenues. Since 2006, FFO at EXR has managed to surge by more than 600%. That beats the pants off its rivals. With strong annual dividend growth and continued high occupancy, EXR could be one of the top REITs to own over the next few years. ### AvalonBay Communities Inc. (AVB) Source: lee via Flickr Dividend Yield: 3.27% Speaking of the nation of renters, demand for apartments, townhomes and other multifamily units has continued to surge. So much so, that rents are expected to surge by more than inflation once again in 2019. This has been a boon for apartment REITs like AvalonBay Communities Inc. (NYSE:AVB). AVB owns 84,490 apartment homes, making it one of the largest landlords in the entire country. Moreover, it has been pruning its portfolio and adding new construction to some of the fastest/strongest areas of the country. Today, the vast bulk of its holdings exist in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest and Northern and Southern California. This has allowed Avalon to see strong occupancy rates and rent growth over the last few years. For the first three quarters of 2018, rents have grown by more than 2.4% -- a number that even beat AVB's own projections. This has naturally translated to strong FFO and dividend growth for the REIT. Since its IPO, AVB has managed to grow its dividend by an average of 5.3% per year. That's not shabby at all considering the sheer size of the firm and the number of apartments it owns. All in all, that dividend growth as well as capital appreciation has managed to produce a steady 13% annual return for investors in the REIT. * 7 Bankruptcy Stocks to Watch in 2019 And given the trends in leasing and renter growth, there's no reason why AVB can't keep the streak going. ### iShares Core U.S. REIT ETF (USRT) Dividend Yield: 4.46% Given the sheer number of bargains among REITs today, a broad approach may be best. And you can't get better than the iShares Core U.S. REIT ETF (NYSEARCA:USRT). In its short history, the ETF has proven to be a winner for investors. USRT tracks the FTSE NAREIT Equity REITs Index, which is one of the gold standards when it comes benchmarking the sector. The ETF owns more than 150 different large- and mid-cap REITs. This extensive coverage includes exposure to industry stalwarts like Simon Property Group Inc (NYSE:SPG) and Boston Properties, Inc. (NYSE:BXP). It also hits all the main property types: apartment buildings, medical, offices, retail, etc. That comes all within one ticker. What it does not include is so-called mortgage REITs, which own paper and loan money to builders and developers. This broad exposure makes USRT a perfect way for investors to add REITs to their portfolio. Performance for the fund has been pretty good as well. Over the last ten years, USRT has managed to produce an 11.35% average annual return. With nearly $1 billion in assets, swift trading volume and a low 0.08% expense ratio, USRT makes a great addition to play the rise in REITs. As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits Compare Brokers The post 5 REITs to Buy for Big-Time Gains This Year appeared first on InvestorPlace.
# Simon Property Group Inc ### NYSE:SPG View full report here! ## Summary * Perception of the company's creditworthiness is negative * Bearish sentiment is low ## Bearish sentiment Short interest | Positive Short interest is extremely low for SPG with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting SPG. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $8.77 billion over the last one-month into ETFs that hold SPG are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit | Neutral According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Financials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. ## Credit worthiness Credit default swap | Negative The current level displays a negative indicator. Although SPG credit default swap spreads are decreasing, they are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness. Please send all inquiries related to the report to email@example.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
INDIANAPOLIS , Jan. 11, 2019 /PRNewswire/ -- Simon, a global leader in premier shopping, dining and entertainment destinations, announced today that financial and operational results for the quarter ending ...
ALLEN, Texas, Jan. 10, 2019 -- Simon and PFSweb, Inc. (NASDAQ: PFSW) today announced the introduction of RetailConnectSM, a new “Fulfillment-as-a-Service” (FaaS) solution, for.
Macerich's (MAC) One Westside redevelopment marks the first-of-its-kind transformation from landmark shopping mall to premium office space and shows its efforts to address retail real estate woes.
INDIANAPOLIS , Jan. 9, 2019 /PRNewswire/ -- Simon, a global leader in premier shopping, dining and entertainment destinations, announced today 2018 year-end tax reporting information. Simon Property Group, ...
INDIANAPOLIS, Dec. 20, 2018 /PRNewswire/ -- Simon, a global leader in premier shopping, dining, entertainment, and mixed-use destinations today released "The Impact of Brick and Mortar Shopping" — a detailed report highlighting the socioeconomic and environmental impacts of its shopping centers. The research was conducted with Deloitte Consulting LLP and is based on comprehensive data collected from Simon's U.S. portfolio. "The development, construction, and operation of shopping centers support local and national economies through job creation, small and local business development, and other investments that contribute to economic development.
Attractive stocks have exceptional fundamentals. In the case of Simon Property Group, Inc. (NYSE:SPG), there's is a highly-regarded dividend payer with a a strong track record of delivering benchmark-beating performance. Read More...
After hitting records in September, the S&P 500 has lost all gains for the year to hold just under the flat line. Ari Wald, head of technical analysis at Oppenheimer, said one corner of the market still works in both good times and bad. The S&P 500's managed health-care sub-industry has surged so far this year.
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Electrify America Ultra-Fast Chargers Debut at San Francisco Premium Outlets SAN FRANCISCO and INDIANAPOLIS , Dec. 5, 2018 /PRNewswire/ -- Simon, a global leader in premier shopping, dining, entertainment ...
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Hedge fund managers like David Einhorn, Dan Loeb, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing […]
With an alluring range of deals, festive activities, dining and entertainment options at its properties, Simon Property Group (SPG) records solid traffic with the onset of the holiday shopping season.
Among mall REITs, Taubman Centers, Inc. (NYSE: TCO ) and Macerich Co (NYSE: MAC ) have underperformed relative to Simon Property Group Inc (NYSE: SPG ), primarily due to the greater cash flow headwinds ...
Nation's Leading Mall Operator Reports 2% Uptick Over Thanksgiving Weekend INDIANAPOLIS , Nov. 27, 2018 /PRNewswire/ -- Simon, a global leader in premier shopping, dining, entertainment and mixed-use destinations, ...