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Simon Initiates Buyback Plan

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REIT stocks have suffered a massive sell-off for a while. But another indication that what is occurring may be an overreaction is the announcement from Simon Property Group that it has authorized stock buyback program. Under the program, the firm may purchase up to $1 billion in its own stock over the next 24 months. Many REITs are now trading at discounts to underlying net asset value--a condition that has not existed for a while and a strong point in the favor of the argument that the sell-off has been too extreme.

As of mid-day, Simon's stock was at $86.28 per share, down $1.33, or 1.52 percent. Overall, Simon is down 30.4 percent off its 52-week high and 14.8 percent for the year.

The company is set to announce its second quarter earnings on Monday.

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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