Hot Cheapest Stocks To Own For 2016

Hot Cheapest Stocks To Own For 2016: Simon Property Group Inc.(SPG)

Simon Property Group, Inc. is a real estate investment trust. The firm engages in investment, ownership, and management of properties. It invests in the real estate markets across the globe. The firm?s portfolio includes regional malls, premium outlet centers, the mills, community / lifestyle centers, and international properties. Simon Property Group was founded in 1960 and is based in Indianapolis, Indiana.

Advisors' Opinion:

• [By WWW.DAILYFINANCE.COM]

  [Millennials] no longer want to be a walking billboard of a brand. Individualism is important to them, having their own sense of style.

  Abercrombie's woes came into sharp relief last month when the company said it was shrinking its well-known logo and increasing its assortment of fashion for women, all to appeal more to 16- to 22-year-olds who don't want to look like everyone else. The move came after 10 straight declines in quarterly same-store sales. "They no longer want to be a walking billboard of a brand," said Michael Scheiner, an Abercrombie spokesman. "Individualism is important to them, having their own sense of style." Other companies are also adjusting their strategies to reach this elusive group. Gap's (GPS) new ad campaign, with the facetious tag line, "dress normal," is all about creating an individual style, the idea being that there is no normal. Aeropostale, for its part, says its new product lines by blogger Bethany Mota are meant to convey "authenticity, emotion and relevance." Mall owners have had to adjust, too. Indianapolis-based Simon Property Group (SPG) is now working with fashion magazines and fashion website Refinery29.com to entice millennial shoppers to the mall with videos, new designers and personalized advice. "Not looking like everyone else is key to everything about what we do," said Chidi Achara, Simon's global cre! ative director. The drive to reach millennials comes during a difficult environment for retailers. Retail spending was flat in August, according to the U.S. Commerce Department, and household spending dropped by 0.1 percent in July, the first decline since January. In August, retailers ranging from Walmart Stores (WMT) to Macy's (M) cut their sales forecasts. How Millennials Shop Thanks to the Internet and smartphones, millennials are more informed shoppers than older generations. More than 70 percent of 18- to 34-year-olds recently surveyed by The Intelligence Group said they research options online befor
• [By Jonas Elmerraji]

  First up is Simon Property Group (SPG), a $51 billion name that tips the scales as the largest U.S. real estate investment trust. SPG owns a wide collection of retail real estate assets, with U.S. regional malls and outlet centers making up approximately 90% of net lease income. Simon also owns a 29% stake in Klepierre, which gives the firm exposure to European retail properties as well. Funds picked up 2.27 million shares of SPG last quarter.

  Simon's scale is one of its biggest benefits. The firm is better able to secure access to cheap capital than its smaller peers, and it's able to participate in larger projects that a smaller firm would require a partner for. The decision to spin off its smaller strip mall properties into Washington Prime Group (WPG) is a positive for the SPG shareholders. It retains the highest-quality assets under the SPG banner while unlocking shareholder value at a time when REITs are looking comparatively attractive in the marketplace.

  In many cases, SPG also gets added exposure to retail sales. Because the firm's main properties are malls, lease agreements typically include a cut of store revenue. That's an attractive sweetener in an environment where consumer spending continues to be on the upswing.

  Right now, SPG pays out a 3.16% dividend yield. While this stock isn't the beefiest payout, it's a staid! bet for ! investors looking for their first taste of REIT exposure.

• [By Will Ashworth]

  REITs such as Simon Property Group (SPG) and General Growth Properties (GGP) have enterprise values that are 20 times EBITDA, while LTM stock putters along at slightly less than nine times EBITDA.

source from Top Stocks For 2015:http://www.topstocksblog.com/hot-cheapest-stocks-to-own-for-2016-2.html