Just for fun I asked Claude.ai to summarize your article:
Here are the key points from the article on Simon Property Group:
1. Simon Property Group is a real estate investment trust (REIT) that owns and operates shopping malls and outlets in the United States.
2. The article raises concerns about the company's future growth prospects due to challenges facing the retail industry, particularly the shift towards e-commerce and the impact of the COVID-19 pandemic.
3. Simon Property Group's occupancy rates have declined in recent years, and the company has had to offer rent concessions to retain tenants, which has impacted its revenue and profitability.
4. The article questions the sustainability of Simon Property Group's dividend, which has been maintained at a high level despite the company's challenges.
5. The author argues that the company's strategy of acquiring distressed malls and redeveloping them may not be successful in the long run, as the retail industry continues to evolve and consumer shopping habits change.
6. The article also highlights the company's high debt levels and the risk of rising interest rates, which could further strain its financials.
7. Overall, the author suggests that investors should be cautious about investing in Simon Property Group, as the company's growth prospects are challenged, and its dividend may not be sustainable in the long run.
In summary, the article raises concerns about Simon Property Group's ability to adapt to the changing retail landscape and maintain its growth and profitability, given the challenges facing the mall and retail industry.
Yeah, Claude3 is supposed to be the new and upcoming candidate for AGI. I think there is a huge amount of excessive hype on AI if this is the quality of it's abilities at this point.
Well EPR is the prize, IMO. But NNN, WPC, and VICI all now pay more than Simon and probably will have faster dividend growth over time. And if you like a bit more risk, AHH.
As to why here, perhaps most important is that SA has been imposing some very weird editing on articles. And they are attempting to "compete" against substack by suppressing all mentions of it, especially by their Investing Group leaders. That just plain rubs me the wrong way. I want to link good sources wherever they are.
But also I've been chatting with MB and others for quite awhile about where it might work for me to start my own service. And thanks to several decisions by SA over that interval, the financial incentives are much better at substack.
So I am moving most of my public posting, and all of my deep dives, here. And otherwise doing the other things you see to attempt to develop a viable service here.
While I never I never followed you into SPG despite opportunities at attractive entry points, I appreciate your article and seeing the evolution of your thinking on this REIT.
Thanks for the update. SPG is a large position for me...my third largest holding overall and largest REIT investment. Sitting on a gain of 40% after getting in at a good time. I've considered it a portfolio anchor and a bit of diversification from triple net REIT investments, of which I hold several. This was a good article for me to read. Like so many other REITS, it comes down to interest rates and inflation. High real interest rates will keep Simon at low or no growth whereas even higher interest rates, if offset by inflation, would help. The good thing about SPG is that it's incredibly well-run. Agreed, at 5% divvy, it's not worth buying more...also not worth selling unless I can find something better at the same risk-level. This was a very good article for me to read. Thank you....looking forward to the next one.
As to why here, perhaps most important is that SA has been imposing some very weird editing on articles. And they are attempting to "compete" against substack by suppressing all mentions of it, especially by their Investing Group leaders. That just plain rubs me the wrong way. I want to link good sources wherever they are.
But also I've been chatting with MB and others for quite awhile about where it might work for me to start my own service. And thanks to several decisions by SA over that interval, the financial incentives are much better at substack.
So I am moving most of my public posting, and all of my deep dives, here. And otherwise doing the other things you see to attempt to develop a viable service here.
I'm with you on Triple Net Lease. Reasonable to robust growth models and a lot less scope for misleading financials. But maybe fully valued unless interest rates change. One does want some diversification.
Just for fun I asked Claude.ai to summarize your article:
Here are the key points from the article on Simon Property Group:
1. Simon Property Group is a real estate investment trust (REIT) that owns and operates shopping malls and outlets in the United States.
2. The article raises concerns about the company's future growth prospects due to challenges facing the retail industry, particularly the shift towards e-commerce and the impact of the COVID-19 pandemic.
3. Simon Property Group's occupancy rates have declined in recent years, and the company has had to offer rent concessions to retain tenants, which has impacted its revenue and profitability.
4. The article questions the sustainability of Simon Property Group's dividend, which has been maintained at a high level despite the company's challenges.
5. The author argues that the company's strategy of acquiring distressed malls and redeveloping them may not be successful in the long run, as the retail industry continues to evolve and consumer shopping habits change.
6. The article also highlights the company's high debt levels and the risk of rising interest rates, which could further strain its financials.
7. Overall, the author suggests that investors should be cautious about investing in Simon Property Group, as the company's growth prospects are challenged, and its dividend may not be sustainable in the long run.
In summary, the article raises concerns about Simon Property Group's ability to adapt to the changing retail landscape and maintain its growth and profitability, given the challenges facing the mall and retail industry.
Not a very good summary in my opinion.
No kidding. Quite a few things completely the opposite of what I wrote. Wow. And these things are going to rule the world? Look out!
Yeah, Claude3 is supposed to be the new and upcoming candidate for AGI. I think there is a huge amount of excessive hype on AI if this is the quality of it's abilities at this point.
Nice article. Other than EPR, any others which might be a good swap for SPG? Also, why substack instead of SA for the article?
Well EPR is the prize, IMO. But NNN, WPC, and VICI all now pay more than Simon and probably will have faster dividend growth over time. And if you like a bit more risk, AHH.
As to why here, perhaps most important is that SA has been imposing some very weird editing on articles. And they are attempting to "compete" against substack by suppressing all mentions of it, especially by their Investing Group leaders. That just plain rubs me the wrong way. I want to link good sources wherever they are.
But also I've been chatting with MB and others for quite awhile about where it might work for me to start my own service. And thanks to several decisions by SA over that interval, the financial incentives are much better at substack.
So I am moving most of my public posting, and all of my deep dives, here. And otherwise doing the other things you see to attempt to develop a viable service here.
While I never I never followed you into SPG despite opportunities at attractive entry points, I appreciate your article and seeing the evolution of your thinking on this REIT.
Thanks! It seems like every year I get a layer deeper into these onions.....
Cheers!... Paul
Great article, RPD! SPG is my largest REIT holding. I actually just sold some Jan 17, $155 CALLS for additional income.
Thanks! Those shares might get called, IMO.
Cheers!... Paul
After reading this article, now kind of hoping they do.
Thanks for the update. SPG is a large position for me...my third largest holding overall and largest REIT investment. Sitting on a gain of 40% after getting in at a good time. I've considered it a portfolio anchor and a bit of diversification from triple net REIT investments, of which I hold several. This was a good article for me to read. Like so many other REITS, it comes down to interest rates and inflation. High real interest rates will keep Simon at low or no growth whereas even higher interest rates, if offset by inflation, would help. The good thing about SPG is that it's incredibly well-run. Agreed, at 5% divvy, it's not worth buying more...also not worth selling unless I can find something better at the same risk-level. This was a very good article for me to read. Thank you....looking forward to the next one.
And here is about why substack:
As to why here, perhaps most important is that SA has been imposing some very weird editing on articles. And they are attempting to "compete" against substack by suppressing all mentions of it, especially by their Investing Group leaders. That just plain rubs me the wrong way. I want to link good sources wherever they are.
But also I've been chatting with MB and others for quite awhile about where it might work for me to start my own service. And thanks to several decisions by SA over that interval, the financial incentives are much better at substack.
So I am moving most of my public posting, and all of my deep dives, here. And otherwise doing the other things you see to attempt to develop a viable service here.
Will you publish AHH deep dive both places?
Nope, just here.
Well, I'm glad I'm here!
Well, I'll follow you wherever you go. You're the best around at this.
Thanks!
I'm with you on Triple Net Lease. Reasonable to robust growth models and a lot less scope for misleading financials. But maybe fully valued unless interest rates change. One does want some diversification.