Simon Property Group, Inc (SPG), Shop This Shopping Mall Owner

On the other hand, the company has a sufficient margin to sustain its current dividend rate in case the occupancy rate and base minimum rents decrease in the coming quarter. Therefore, in both scenarios, Simon Property Group presents an excellent opportunity for you to expand your regular income.

Competition

Simon Property Group, Inc (NYSE:SPG) competes with other US equity REITs like General Growth Properties Inc (NYSE:GGP) and Boston Properties, Inc. (NYSE:BXP). Boston Properties has a large concentration in the Boston, San Francisco, New York, Washington and Princeton regions and owns and manages over 157 properties over 44.4 million square feet. The company is scheduled to report its first quarter performance on April 30. Analysts have a consensus mean estimate of $1.21 per share for its first quarter’s EPS. This is 2% below the prior quarter’s EPS.

For General Growth Properties, analysts have a consensus mean expectation of $0.24 earnings per share. According to Reuters, the company has ownership and manages over 136 regional malls in over 41 states covering over 58 million square feet.

Compared to the Simon Group, General Growth Properties Inc (NYSE:GGP) and Boston Properties, Inc. (NYSE:BXP) are operating only within the US. However, I believe both competitors will benefit from the improving trends in occupancy coupled with a hike in base minimum rents.

Conclusion

The sustainable dividend at Simon Property Group, Inc (NYSE:SPG) presents an excellent opportunity to enhance your regular income. Besides, the company enjoyed a solid first quarter on better operating performance. Further, Simon also raised its outlook for the remainder of the current year. All these factors lead me to think that Simon Property’s current dividends are sustainable at the least. Therefore, I am bullish on Simon Property Group.

The article Shop This Shopping Mall Owner originally appeared on Fool.com.

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