SPG

This is a real estate investment fund that operates on commercial property rentals, including restaurants, stores, and recreation centers. SPG shares reacted badly to the pandemic in 2020 but recovered quickly in 2021. This year they were hit by the general market correction and are trading 40% off their peak prices of 2021.

However, the business of Simon Property Group has completely recovered after the pandemic now. During 2021, 91.85% of all available spaces were rented while during the first half of 2022 93.9% of spaces were taken. These numbers are down from the first month of 2020 when the result was 94%. The major threats for the business now are high inflation and a possible recession. Some experts believe that the pandemic has kicked out weak peers from the market, so a warning to anyone left, you better be prepared for any challenges.

Strong financials allow the company to pay dividends and conduct buy backs of its own shares from the market. The fund spent $144 million over the last quarter to conduct these operations. The dividend yield is at 7%. It is a nice bonus and provides motivation for the addition of SPG shares with significant discount to the portfolio.