Every week on ours Industry focus: financial data show, host Jason Moser and Fool.com contributor Matt Frankel, CFP, each discuss a title that tops their checklist. On this November 16, 2020, Fool Live clip, listen because the mall’s real estate investment confidence Simon Property Group (NYSE: SPG) is on Frankel’s radar, while Moser has his eye on the retail giant Target (NYSE: TGT).
Jason Moser: Well, Matt, before we wrap up this week, as almost always, we want to give our listeners a stash to keep an eye on next week. What’s yours to watch this week?
Matt Frankel: I’m looking at Simon Property Group, the ticker symbol is SPG. I am a real estate investment fund. They are the largest mall real estate investment fund in the world. They just announced a revised deal today to buy one of their rivals, Taubman Centers (NYSE: TCO), another operator of a Class A shopping mall and get a 20% discount. They were under contract with Taubman before the pandemic, they ended up withdrawing from the deal, Taubman sued them, they sued Taubman, it would have been a big mess. They just announced today that all disputes have been resolved and are buying Taubman now for 20% less than they originally were. They are conquering the competitor, they are expanding their reach. I’ve said this before when it comes to shopping malls, it’s Simon and everyone else, and this acquisition adds to that statement. I am a big fan.
Jason Moser: Beautiful. Good deal. Well, I’ll keep an eye on Target. The ticker for the target is TGT. They actually have earnings coming out on Wednesday. There are a number of different viewpoints in this company now, which I find just a fascinating business, and one where they’ve made so many interesting moves here in the past few years. I want to hear their point of view on the upcoming holiday season. But then there is also the Shipt angle. Remember, they acquired Shipt several years ago for $ 550 million in cash and this is something that has given them presence in the shipping space and fulfillment space. A little membership model there, and then collaboration with all the different retailers out there. They recently announced it Ulta (NASDAQ: ULTA) partnership, which I think is quite fascinating. Speaking of cards, there’s the Target RedCard they are working with in partnership MasterCard (NYSE: MA) is TD Bank (NYSE: TD). Penetration rates there for Target RedCard, it hovers in the range of 23% to 24%, which basically refers only to the percentage of revenue spent within the company, purchases made within the goal with that RedCard. But it’s always interesting to see how big retailers like that pull that lever, that card. Certainly Target RedCard is something that keeps some of those customers loyal, I’d say, which is just interesting. But the business has been going very well in recent years and I’m interested in seeing what they have to say on Wednesday so I’ll keep an eye on it.