06-27-2019, 12:15 PM
(06-27-2019, 11:18 AM)divmenow Wrote: I don't own the name but SPG is at an all time low and is now sporting a yield of 5.15% and a PE of 20. I realize mall traffic is bad but this stock has been punished. Any turn around and you may have a good bargain here. Anyone own the name?
They are essentially in the same space as SKT, which I own. As it's a REIT, you'll want to look at P/AFFO (P/E is almost meaningless for REITs). This is a space that has been hit hard by the Amazon/ecommerce fear, and current trends in terms of the rents that they can command are not favorable. This is essentially late-cycle retail.
That said, P/AFFO is at 14.3, which looks good, and well under SPG's 10yr historical average of 19.2. Their P/AFFO valuation dipped as low as 6 during the Great Recession, so if we were to have a downturn of that magnitude, you could be looking are greater than 50% downside from present prices.