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Simon Property (SPG)
NYSE:SPG
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Simon Property
(NYSE:SPG)
66Neutral
Positive Factors
Financial Performance
SPG's development program yields 8% cash returns, which are among the best compared to peers.
Growth Initiatives
SPG's initiatives to invest in existing class B assets at outsized returns are viewed as an attractive growth lever.
Valuation
Shares of Simon Property Group are considered undervalued, leading to an analyst upgrading the stock to a Buy rating.
Negative Factors
Earnings
4Q FFO per share of ~$3.39, excluding one-time items, was below consensus estimates.
Sector Performance
Mall REITs, including Simon Property Group, have underperformed the broader market indices, reflecting challenges in the sector.
Stock Valuation
Analyst remains Neutral on SPG as its growth prospects are reflected in its current stock price, trading at a premium to its 5-year average.
Simon Property (SPG) vs. S&P 500 (SPY)
Market Cap
$60.99B
Dividend Yield5.11%
Average Volume (3M)1.91M
Price to Earnings (P/E)21.4
Beta (1Y)1.02
Revenue Growth5.40%
EPS Growth8.57%
CountryUS
Employees2,600
SectorReal Estate
Sector Strength80
IndustryREIT - Retail
Share Statistics
EPS (TTM)2.04
Shares Outstanding326,243,440
10 Day Avg. Volume1,527,108
30 Day Avg. Volume1,907,878
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.32
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit15.97
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$176.79Price Target Upside8.45% Upside
Rating ConsensusHold
Number of Analyst Covering8
Simon Property Business Overview & Revenue Model
Company DescriptionSimon is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales.
How the Company Makes MoneySimon Property Group generates revenue primarily through the leasing of retail space in its properties. The company's key revenue streams include base rent from long-term lease agreements with retail tenants, percentage rent based on a portion of the tenant's sales, and common area maintenance charges. Additionally, SPG earns from ancillary services such as parking fees and advertising. The company maintains strategic partnerships with leading retailers and brands, which enhances its property value and tenant mix. Simon Property Group also benefits from its investment in joint ventures and international properties, further diversifying its income sources.
Simon Property Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business areas, highlighting which segments drive growth and profitability, and identifying potential vulnerabilities or opportunities for expansion.
Analyzes income from different business areas, highlighting which segments drive growth and profitability, and identifying potential vulnerabilities or opportunities for expansion.
Data provided by:
Main Street Data
Main Street DataSimon Property Financial Statement Overview
Summary
Simon Property has shown strong revenue growth and efficient cost management, as indicated by a solid gross profit margin. However, a significant drop in net income in 2024 raises concerns about potential expense issues. High leverage and a lack of current cash flow data further underline financial risks.Income Statement
Simon Property has shown a consistent revenue growth over the years, with an increase from $4.61 billion in 2020 to $5.96 billion in 2024. The gross profit margin is strong, indicating efficient management of costs. However, the net profit margin has significantly decreased in 2024 due to a drastic drop in net income, which could signal potential issues with expenses or one-time charges.―
Balance Sheet
The company has a high debt-to-equity ratio, which suggests significant leverage and potential financial risk. The equity ratio is relatively low, indicating higher liabilities compared to equity. Despite these concerns, Simon Property maintains a stable asset base, although stockholders' equity has slightly declined over recent years.65
Cash Flow
Simon Property's cash flow from operations has been strong historically, but the free cash flow in 2024 was not provided, preventing a complete analysis. The lack of operating cash flow data for 2024 raises concerns about cash management. Previous years showed solid free cash flow generation, but the lack of current year data is a red flag.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.96B | 5.66B | 5.29B | 5.12B | 4.61B | Gross Profit |
| 5.03B | 4.73B | 4.29B | 4.15B | 3.72B | EBIT |
| 3.09B | 2.81B | 2.58B | 2.41B | 1.97B | EBITDA |
| 4.36B | 4.07B | 4.59B | 4.46B | 3.41B | Net Income Common Stockholders |
| 7.26K | 2.28B | 2.14B | 2.25B | 1.11B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.40B | 2.17B | 621.63M | 533.94M | 1.01B | Total Assets |
| 32.41B | 34.28B | 33.01B | 33.78B | 34.79B | Total Debt |
| 24.78B | 26.52B | 25.46B | 25.83B | 27.24B | Net Debt |
| 23.38B | 25.35B | 24.84B | 25.29B | 26.23B | Total Liabilities |
| 28.81B | 30.60B | 29.19B | 29.38B | 31.13B | Stockholders Equity |
| 2.94B | 3.02B | 3.14B | 3.36B | 3.04B |
| Cash Flow | Free Cash Flow | |||
| 3.06B | 3.14B | 3.12B | 3.11B | 1.84B | Operating Cash Flow |
| 3.81B | 3.93B | 3.77B | 3.64B | 2.33B | Investing Cash Flow |
| 1.41B | -1.36B | -626.56M | -552.76M | -3.98B | Financing Cash Flow |
| -4.99B | -2.02B | -3.05B | -3.56B | 1.99B |
Simon Property Technical Analysis
Neutral
163.01
Price Trends
161.54
Negative
168.09
Negative
165.91
Negative
Market Momentum
0.42
Negative
56.16
Neutral
81.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPG, the sentiment is Neutral. The current price of 163.01 is above the 20-day moving average (MA) of 154.33, above the 50-day MA of 161.54, and below the 200-day MA of 165.91, indicating a neutral trend. The MACD of 0.42 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 81.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPG.
Simon Property Risk Analysis
Simon Property disclosed 35 risk factors in its most recent earnings report. Simon Property reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Simon Property Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $7.70B | 24.15 | 10.99% | 4.45% | 4.58% | 12.65% | |
71 Outperform | $13.94B | 27.09 | 5.19% | 4.75% | 12.55% | 45.10% | |
68 Neutral | $13.15B | 34.19 | 5.83% | 3.82% | 7.39% | 3.41% | |
66 Neutral | $60.99B | 21.44 | 80.78% | 5.11% | 5.40% | 8.57% | |
64 Neutral | $14.68B | 71.03 | 3.06% | 1.93% | 0.63% | 258.59% | |
60 Neutral | $2.81B | 11.39 | 0.21% | 8508.43% | 6.31% | -14.32% | |
53 Neutral | $3.90B | ― | -7.50% | 4.58% | 4.88% | -66.88% |
* Real Estate Sector Average
Performance Comparison
SPG
Simon Property
163.01
21.08
14.85%
KIM
Kimco Realty
20.68
2.47
13.56%
MAC
Macerich
15.06
0.18
1.21%
REG
Regency Centers
71.90
14.86
26.05%
VNO
Vornado Realty
38.73
14.47
59.65%
BRX
Brixmor Property
25.11
3.75
17.56%
Simon Property Earnings Call Summary
Earnings Call Date:Feb 04, 2025
(Q4-2024)
| % Change Since: -4.80%|
Next Earnings Date:May 12, 2025
Earnings Call Sentiment Positive
The earnings call presents a positive outlook with record FFO, strong leasing activity, and strategic acquisitions. However, there are cautious notes on future interest expenses and potential impacts from external economic factors like tariffs.Q4-2024 Updates
Positive Updates
Record Funds from Operations
Reported record total funds from operations of $4.9 billion or $12.99 per share, with real estate FFO growth of 3.9% year-over-year.
Strong Leasing Activity
Signed more than 5,500 leases for over 21 million square feet, with 25% of leasing activities being new deals, leading to occupancy at malls and outlets reaching 96.5%.
Significant Redevelopment and New Developments
Completed 16 significant redevelopment projects and opened new outlets like the fully leased premium outlet in Tulsa, Oklahoma.
Deleveraged A-Rated Balance Sheet
Deleveraged the balance sheet by approximately $1.5 billion, ending the year with a net debt to EBITDA ratio of 5.2 times and over $10 billion in liquidity.
Dividend Increase
Announced a dividend of $2.10 per share for the first quarter, reflecting a year-over-year increase of 7.7%.
Acquisition of Italian Luxury Outlet Centers
Completed the acquisition of two well-known luxury outlet centers in Italy from Kering, enhancing the global portfolio.
Negative Updates
Higher Interest Expenses Expected
Projected increased net interest expense for 2025 of between $0.25 to $0.30 per share due to current market interest rates.
Uncertain Impact of Tariffs and De Minimis Rule Changes
Potential impacts of tariffs and changes to the de minimis rule could affect retailer cost structures, although these were not seen as immediate concerns.
Continued Risks from Tenant Bankruptcies
Consideration of historical bad debt rates in 2025 guidance indicates ongoing caution around tenant bankruptcies.
Company Guidance
During the Simon Property Group's fourth quarter 2024 earnings call, guidance for fiscal year 2025 was outlined with a focus on continued growth. The company expects real estate funds from operations (FFO) to range between $12.40 and $12.65 per share, with an assumption of at least 3% domestic property net operating income (NOI) growth. Simon Property Group highlighted strong leasing activities, with over 21 million square feet leased in 2024 and an occupancy rate reaching 96.5% for malls and outlets. The company plans to fund redevelopment and mixed-use projects using internally generated cash flow, projecting over $1.5 billion post-dividend payments. Additionally, Simon Property Group completed $11 billion in financing activities in 2024, maintaining an A-rated balance sheet with more than $10 billion in liquidity. The first quarter 2025 dividend was announced at $2.10 per share, marking a 7.7% increase year-over-year.Simon Property Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Simon Property Reports Record Financial Performance in 2024
Positive
Feb 4, 2025
Simon Property Group reported record Funds From Operations of nearly $4.9 billion for the year 2024, attributing its success to strong leasing activity and strategic redevelopment projects. The company also demonstrated financial strength with increased net income and a significant liquidity position of approximately $10.1 billion, all while raising dividends, reflecting its robust market position and commitment to shareholder returns.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.