On Tuesday, February 20, Aaron McIntyre pitched Simon Property Group (NYSE: SPG) to be added to the SMIF portfolio. Simon Property Group is a retail real estate investment trust (REIT) and the second largest publicly traded equity REIT. The company invests in large malls as well as premium outlets. Aaron emphasized continued growth in NOI, revenue, and same-store sales, which presents strong performance in SPG’s assets. The retail industry is in the middle of a large transformation with the emergence of e-commerce and the shift in consumer interest to more enjoyable shopping experiences. As the largest mall owner in America, Simon has the advantage over its competitors of being able to focus on evolving its current assets as opposed to seeking other investment opportunities. The addition of SPG supports the fund’s consensus that the U.S. economy will see great growth in the coming year and therefore, an increase in consumer spending. Aaron proposed to purchase 40 shares of SPG through the sale of 38 shares of the XLU, 11 shares of NextEra Energy (NEE), and 10 shares of SPY. The motion passed unanimously.
