Simon Property Group Inc (SPG): Simon Property Group Inc. is currently trading very close to its 52-week high of $139.63. In fact, that's an all-time high reached by the stock recently. It distributes an annual dividend of $3.80, has a yield of 2.80% and a payout ratio of 101%. Sales and income during the last 12 months increased 8.80% and 67.30%, respectively. Furthermore, revenue for the last four years has increased at a compound annual growth rate of 3.29% while income has increased at a compound annual growth rate of 21.93% during the same time period.
Earnings per share (TTM) came in at $3.48, compared to -$0.33, $1.46, and $4.17 for competitors General Growth Properties Inc. (GGP), Macerich Co. (MAC) and Vornado Realty Trust (VNO), respectively.
The stock has been on a bullish trend since the beginning of 2009, after rebounding from the recession. I strongly believe the stock will continue appreciating in value due to a healthier real estate market and overall economy, which will lead to higher revenue and earnings per share, thus investor demand will continue to increase.
CBL & Associates Properties Inc (CBL): CBL & Associates Properties Inc distributes an annual dividend of $0.84, has yield of 4.70% and a payout ratio of 135%. During the last 12 months, sales and income increased 0.40% and 17.80%, respectively.
Revenue has increased at a compound annual growth rate of 0.76% while income has decreased at a compound annual growth rate of 8.62%. Earnings per share came in at $0.62, compared to $1.46 for Macerich Co. and $3.48 for Simon Property Group Inc. The stock has a price to earnings ratio of 28.43, lower than Macerich Co. (37.99) and Simon Property Group (39.59), which indicates how investors are willing to pay a lower premium for the stock. This is evident because CBL & Associates Properties has a price-to-earnings-to-growth (PEG) ratio of 2.86, higher than the two competitors mentioned earlier. This means the market expects a lower growth rate for CBL & Associates Properties. Nevertheless, cash flow and income strengthened last year, a good indication the stock will bounce back in tandem to the real estate market recovery, and thus I think the stock will continue on a bullish trend as it slowly appreciates in value.
From a technical perspective, the stock has rebounded after tumbling down during the recession and I believe, with patience, the stock will trade much higher to the levels it traded before. On a recent announcement, analysts at one bank downgraded the shares of CBL & Associates Properties while two other banks upgraded the stock.
Regency Centers Corp. (REG): Regency Centers Corp. has been slightly appreciating after reaching a low of around $22 back in 2009. Currently, the stock issues an annual dividend of $1.85, has a yield of 4.30% and a payout ratio of 529%. During the last 12 months sales and income increased 5.10% and 208.30%, respectively. Revenue during the last four years increased at a compound annual growth rate of 0.28% while income decreased at a compound annual growth rate of 21.63%. The moderate revenue increase and lower income are due primarily to the real estate bubble that burst around 2007. However, revenue has started to pick up during the last two years, a good indication that the stock will begin appreciating in value.
Earnings per share came in at $0.35 while competitors DDR Corp. (DDR) and Kimco Realty Corporation (KIM) reported earnings per share of -$0.56 and $0.27, respectively. With a price to earnings ratio of 123.57, it is clear investors are expecting higher growth from this stock than its competitors, whose price to earnings ratio are twice as half. I think it will not take very long for the stock to appreciate in value at a much higher rate due to higher revenue, good investor and market sentiment towards the stock, and an improved real estate market.
Equity One Inc. (EQY): Equity One Inc. is trading just under its 52-week high of $20.27. The stock issues an annual dividend of $0.88, has a yield of 4.40% and a payout ratio of 142%.
Revenue over the last four years has been increasing at a compound annual growth rate of 3.93% while income has been decreasing at a compound annual growth rate of 22.45% during the same time period. Nevertheless, the stock's earnings per share are much higher than its main competitors. For example, earnings per share for Equity One came in at $0.43 while Kimco Realty Corporation and Regency Centers Corporation reported earnings per share of $0.27 and $0.35, respectively.
From a technical perspective, this is the fourth time within a year that the stock is attempting to break over its resistance level of about $21. I think this will be inevitable due to the stock earning higher revenue from a healthier real estate market. When this happens, I believe the stock will reach $25, or even higher.
Macerich Co : Macerich Co. has recently reached a new one year high of $56.51. In fact, the stock has been soaring since the beginning of 2009, when it reached a low of around $6. The stock currently issues an annual dividend of $2.20, has a yield of 4.00% and a staggering payout ratio of 1,429%.
Revenue over the last four years has been decreasing at a compound annual growth rate of 2.49% while net income has been decreasing at a compound annual growth rate of 1.41% during the same period, primarily due to the real estate market collapse nationwide. Earnings per share came in at $1.46 while its competitors, General Growth Properties Inc. and Simon Property Group Inc., reported earnings per share of -$0.33 and $3.48, respectively.
The stock recently increased its fourth quarter dividend from $0.50 to $0.55. Thus, I believe the bullish trend will continue, as in the past three years, with the help of higher revenue, maybe higher dividends, and a slight but steady recovery in the real estate sector.
About the author:I am primarily an investor interested in creating passive income streams through dividends. I focus on finding and analyzing dividend paying stocks, MLPs and REITs that are a good fit for income investors.
I practice Judaism and my faith is very important to me. I visit family in Israel once a year, but I am educated and work in the United States where I hold an MBA and a bachelor’s in English. I am a patient man, enjoy wine but am not a connoisseur, and I listen more than I speak.