Go Figure

Even though Simon Property Group's stock price is off its high seen during the largest US real estate bubble ever, it trades at close to a record market cap because of all the shares it issued. How is it possible that retailers are having such a tough time and a landlord to retailers is at bubble levels? Beats the hell out of me.

2 comments:

Applesaucer said...

You oughtta check out some of the gold and silver miners, particularly CDE. An all-to-common disgrace.

Applesaucer

Anonymous said...

Cap rates and interest rates are at low levels. With leverage this allows some REITS to pass through substantial cash. And many investors think commercial RE has hit bottom.

I agree that underlying value isn't there, but the cash they're passing thru may continue.

Praguer