Earlier this month Simon Property Group rocked the retail community not only with its announcement that it had bid $3.6 billion for a stake in Taubman Centers, but also that the price it was paying was a 51% premium, according to Morningstar (per Bloomberg). This price spoke volumes about the value these assets have for Simon as well as the industry as a whole, according to analyst Kevin Brown, as it suggests that class A mall REITs in general are undervalued.
Essentially, this analysis rewrites retail’s script of the last several years in which the asset class has been mainly playing defense, and not always successfully.. . . more