Mall and shopping center company Simon Property Group (SPG, Financial) subtracted -0.41% from the Fund’s return, as its stock slipped -16.6%. Operating profitability, leasing activity and occupancy rates all improved through the year. However, higher costs stemming from wages, janitorial and security services and platform investments threatened to squeeze margins going forward. We like Simon’s portfolio of assets, which include Class A malls located in markets with dense populations and high incomes. Continued economic reopening, including the return of international tourism, should boost the stock.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund (Trades, Portfolio)'s first-quarter 2022 commentary.
