Ethics Controversy: Congressman Jackson Bets on America's Largest Mall REIT
On April 20, Democratic Congressman Jonathan Jackson of Illinois’s 1st District purchased between $15,001 and $50,000 worth of shares in Simon Property Group (SPG), the largest U.S. shopping-mall REIT, and reported the transaction to Congress on May 27. On the day of his purchase, SPG closed at about $207 per share. By the end of May, the stock was trading in the low $200s, still up by a double-digit percentage year-to-date.
Jackson, the son of civil-rights leader Jesse Jackson, represents a progressive district covering Chicago’s South Side and suburbs. He serves on the House Agriculture Committee—where he sits on subcommittees for commodities, digital assets, and rural development, handling issues such as derivatives and rural infrastructure—and on the Foreign Affairs Committee’s Subcommittee on Africa and Global Health, focusing on global supply chains and emerging-market consumption. However, he has faced criticism from the media and watchdog groups for repeatedly filing delayed disclosures of his and his spouse’s stock trades, in violation of the STOCK Act (Stop Trading on Congressional Knowledge). Critics argue that his growing personal holdings in listed REITs and major financial stocks heighten potential conflicts of interest and ethical risks.
Simon Property Group owns and operates the nation’s largest portfolio of premier shopping malls, outlets, and lifestyle centers and is widely regarded as a leading beneficiary of consumer recovery and the restructuring of brick-and-mortar retail. In the first quarter, SPG reported funds from operations (FFO) of $3.17 per share, a 7.5% increase year-over-year. After raising its full-year FFO guidance and boosting its quarterly dividend by over 7%, the stock surged from the $190s in early April to the upper $200s by midmonth. Still, following the late-March passing of CEO David Simon, a second-generation family leader, the company is in transition, and analysts warn that REITs overall may face increased volatility given interest-rate trends, the health of the commercial-real-estate market, and competition between online and offline retail.
Because Jackson’s trade was executed on April 20 and reported on May 27, it falls within the STOCK Act’s requirement to disclose transactions within 45 days. Nevertheless, having previously been cited for late filings and continuing to invest in individual stocks rather than placing assets in blind trusts or index funds, Jackson’s activity could reignite momentum—both inside and outside Congress—for a blanket ban on lawmakers trading individual securities.