04-03-2020, 09:33 AM
(04-03-2020, 09:02 AM)Otter Wrote:(04-02-2020, 06:27 PM)fenders53 Wrote:(04-02-2020, 02:36 PM)EricL Wrote:(04-02-2020, 02:32 PM)fenders53 Wrote: Another well pumped "SWAN" from S.A. There has to be some value in those SPG assets at some point but who knows where today?
The problem is, there's a difference between the value in the assets on the books, and the value of the assets in real life.
Brick & mortar retail & department stores were in a heap of trouble already before this pandemic hit, and are in much worse shape now.
How do you value those assets?
No idea and I'm not buying a stock because I want to invest in real estate liquidation anyway. SPG isn't going away, but investors are going to lose a lot of money. The pandemic is going to change the brick and mortar landscape some.
While we are chatting about shopping centers. Strip malls that look a lot like Tanger do very well where I live, but they are in town in the high traffic areas. The newer malls do reasonably well too, but they can't keep an anchor department store alive.
I think there will be a brief period after all of this where traditional brick and mortar retail sees a temporary spike, as people relish being back outside and not having to order everything online.
I think it will be brief (maybe one excellent quarter), as people go back to buying whatever is cheapest from Amazon pretty quickly.
This assumes anyone is still employed and capable of buying anything.
They are going to have to market what HD calls BOPIS (buy online pickup in store, or your house). It's amazing HD didn't get truly serious about it until last year, and many other's still haven't. I teach several people a day how to do it and they weren't aware how easy it is. There are millions of people with money that are not so confident on how to run the internet and buy things they can't get locally. Simple returns is some of the attraction.