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 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.Group that it has
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.