Yahoo Finance Simon's (SPG) Dadeland Mall to House Etam's First US Store
Simon Property Group SPG announced the opening of the first U.S. store of the French brand Etam at Dadeland Mall in Miami, FL. The new store, which will open in the Summer of 2023 and feature Etam's latest store concept, is expected to draw more shoppers to this well-known retail destination.
Established in 1916, Etam offers consumers French fashion, ranging from lingerie and swimwear to pajamas, loungewear and lifestyle accessories. Currently, Etam operates more than 850 stores throughout Europe, the Middle East, Latin America and Asia.
Simon Property’s successful tie-ups with premium retailers have paid off well in recent years. One of the company’s top retail properties in the United States — Dadeland Mall — has served as a point of introduction for several international brands lately, including Mango, Bimba y Lola, Razer and Tous, among others.
Per Zach Beloff, the vice president of leasing at Simon, “Etam is a global brand that we believe has a strong brick-and-mortar future in the U.S. We hope to see them expand throughout our portfolio."
The increase in consumers’ preference for an in-person shopping experience following the pandemic downtime has been driving the recovery in the retail real estate industry. Retailers continue to rent out more physical store spaces to meet this growing demand. As a result, SPG’s portfolio of premium assets in the United States and abroad has been experiencing solid leasing activity.
In 2022, it signed 1,262 new and 1,517 renewal leases (excluding mall anchors and majors, new development, redevelopment, and leases with terms of one year or less) with a fixed minimum rent across its U.S. Malls and Premium Outlets portfolio.
Moreover, recently, Simon Property announced that it would collaborate with José Andrés Group (“JAG”) to bring award-winning restaurants to several of the company’s premier properties. With the introduction of unmatched culinary experiences at the Stanford Shopping Center in Palo Alto and The Shops at Crystals, JAG is set to step into new markets and expand its footprint in existing anchor cities.
JAG will also introduce Zaytinya to The Forum Shops at Caesars Palace in Las Vegas. The new restaurants are expected to open in 2023 and 2024.
Going forward, Simon Property is poised to benefit from its superior assets at premium locations. With a solid balance sheet position and ample financial flexibility, SPG is well-positioned to capitalize on long-term growth opportunities.
Shares of this Zacks Rank #3 (Hold) company have risen 17.5% in the past six months compared with its industry’s growth of 15.8%.
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Stocks to Consider
Some better-ranked stocks from the retail REIT sector are Regency Centers REG, Federal Realty Investment Trust FRT and Essential Properties Realty Trust EPRT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Regency Centers’ ongoing year’s FFO per share has been revised marginally upward over the past month to $4.08.
The Zacks Consensus Estimate for Essential Properties Realty’s 2023 FFO per share has been revised a cent upward over the past three months to $1.64.
The Zacks Consensus Estimate for Federal Realty’s ongoing year’s FFO per share has been revised marginally upward over the past month to $6.45.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Simon Property Group, Inc. (SPG) : Free Stock Analysis Report
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