Despite Potential Stock Price Drop, King of Prussia Mall’s Simon Property Group Represents Great Investment Opportunity

Simon king of prussia mall
Image via Montco.Today.

While Simon Property Group, owner of King of Prussia Mall and Philadelphia Premium Outlets, could be approaching its stock price near-term low, this could also provide investors with a great opportunity to buy a quality asset at a discount, writes Zvi Bar for Seeking Alpha.

Simon is the nation’s largest domestic retail REIT that focuses on class A malls and premium outlets.

In 2020, it acquired Taubman, which also had a significant portfolio of malls and shopping centers across the country.

Simon went down by around 5 percent last week and is now trading at around 10 percent under its post-COVID-19 high. The company also announced an offering for $1.2 billion in senior notes, which usually weighs on equity valuations in the short term.

However, while Simon stock performed exceptionally in 2021, it has performed poorly recently, as the market broadly declined and interest rates increased. Additionally, retail supply and demand are uncertain and the ongoing labor shortage is affecting retail performance.

All of this is likely to affect Simon’s stock price in the near future and likely make it a better than an average long-term buying opportunity.

Read more about King of Prussia Mall’s Simon Property Group stock prices in Seeking Alpha.