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Simon Property (SPG)
NYSE:SPG
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Simon Property
(NYSE:SPG)
Rating:68Neutral
Price Target:
$172.00
▲( 8.78% Upside)
Positive Factors
Dividend
A dividend of $2.10 was declared, which is an increase of 5.0% year-over-year.
Occupancy Rate
Occupancy rate increased to 95.9%, showing a year-over-year improvement.
Valuation
The stock is trading at a significant discount to its estimated net asset value, suggesting potential for price appreciation.
Negative Factors
Earnings
1Q headline FFO per share of $2.67 fell short of consensus estimates of $2.91.
Market Performance
Mall REITs, including Simon Property Group, have underperformed the broader market indices, reflecting challenges in the sector.
Sales
Reported tenant sales did decline to $733/sqf from $739/sqf.
Simon Property (SPG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$62.04B
Dividend Yield5.06%
Average Volume (3M)1.86M
Price to Earnings (P/E)24.6
Beta (1Y)0.96
Revenue Growth4.25%
EPS Growth-14.90%
CountryUS
Employees2,600
SectorReal Estate
Sector Strength56
IndustryREIT - Retail
Share Statistics
EPS (TTM)1.27
Shares Outstanding326,417,050
10 Day Avg. Volume1,881,445
30 Day Avg. Volume1,857,438
Financial Highlights & Ratios
PEG Ratio-1.94
Price to Book (P/B)20.68
Price to Sales (P/S)0.00
P/FCF Ratio17.69
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue3.28
Enterprise Value/Gross Profit15.68
Enterprise Value/Ebitda3.92
Forecast
1Y Price Target
$177.57Price Target Upside12.30% Upside
Rating ConsensusModerate Buy
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 makes money primarily through the collection of rental income from its extensive portfolio of retail properties. The company's revenue model consists of various key streams, including base minimum rents, overage rents that are contingent on a tenant's sales performance, and common area maintenance charges. Additionally, Simon Property generates income from ancillary services, such as parking, advertising, and sponsorship deals within its centers. The company also benefits from strategic partnerships and joint ventures that enhance its asset base and tenant mix. Furthermore, Simon Property capitalizes on its scale and expertise in property management to drive value through redevelopment and expansion projects, enhancing the appeal and profitability of its properties.
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 demonstrates strong profitability and cash flow generation, with robust EBIT and EBITDA margins. However, the high debt-to-equity ratio poses a potential risk to financial stability, necessitating careful monitoring of leverage levels.Income Statement
Simon Property shows strong profitability with a stable gross profit margin of 78.6% TTM and a net profit margin of 27.3% TTM. The revenue growth rate TTM is 0.5%, indicating modest growth. The EBIT and EBITDA margins are robust at 51.5% and 72.9% respectively, highlighting efficient operational management. However, the revenue growth is relatively low, which may limit future profitability expansion.78
Positive
Balance Sheet
The company has a high debt-to-equity ratio of 8.24 TTM, suggesting significant leverage which could pose financial risks in adverse market conditions. The return on equity is strong at 54.5% TTM, indicating effective use of equity to generate profits. The equity ratio is low at 9.2% TTM, reflecting a heavy reliance on debt financing. While profitability is solid, the high leverage could undermine financial stability.65
Positive
Cash Flow
Simon Property exhibits strong cash flow management with a free cash flow growth rate of 20.6% TTM. The operating cash flow to net income ratio is favorable at 2.29 TTM, showing efficient cash generation relative to net income. The free cash flow to net income ratio is robust at 2.25 TTM, indicating strong cash profitability. Despite strong cash flow metrics, the reliance on debt financing remains a concern.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.99B | 5.96B | 5.66B | 5.29B | 5.12B | 4.61B | Gross Profit |
| 4.96B | 4.92B | 4.73B | 4.29B | 4.15B | 3.72B | EBIT |
| 3.09B | 3.09B | 2.81B | 2.58B | 2.41B | 1.97B | EBITDA |
| 4.63B | 5.02B | 4.07B | 4.59B | 4.46B | 3.41B | Net Income Common Stockholders |
| 2.05B | 2.37B | 2.28B | 2.14B | 2.25B | 1.11B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.38B | 1.40B | 2.17B | 621.63M | 533.94M | 1.01B | Total Assets |
| 32.50B | 32.41B | 34.28B | 33.01B | 33.78B | 34.79B | Total Debt |
| 25.27B | 24.78B | 26.52B | 25.46B | 25.83B | 27.24B | Net Debt |
| 23.89B | 23.38B | 25.35B | 24.84B | 25.29B | 26.23B | Total Liabilities |
| 29.23B | 28.81B | 30.60B | 29.19B | 29.38B | 31.13B | Stockholders Equity |
| 2.61B | 2.94B | 3.02B | 3.14B | 3.36B | 3.04B |
| Cash Flow | Free Cash Flow | ||||
| 3.05B | 3.06B | 3.14B | 3.12B | 3.11B | 1.84B | Operating Cash Flow |
| 3.87B | 3.81B | 3.93B | 3.77B | 3.64B | 2.33B | Investing Cash Flow |
| 337.08M | 1.41B | -1.36B | -626.56M | -552.76M | -3.98B | Financing Cash Flow |
| -4.08B | -4.99B | -2.02B | -3.05B | -3.56B | 1.99B |
Simon Property Technical Analysis
Negative
158.12
Price Trends
158.92
Negative
167.11
Negative
166.69
Negative
Market Momentum
1.29
Positive
46.58
Neutral
26.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPG, the sentiment is Negative. The current price of 158.12 is below the 20-day moving average (MA) of 161.10, below the 50-day MA of 158.92, and below the 200-day MA of 166.69, indicating a bearish trend. The MACD of 1.29 indicates Positive momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 26.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 1 New Risks
1.
Artificial generative intelligence technologies present risks related to the control of our proprietary business information, keeping such information confidential, and emerging regulatory risk, any or all of which may adversely affect our business and results of operations. Q4, 2024
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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $14.66B | 28.33 | 5.19% | 4.60% | 12.55% | 45.10% | |
71 Outperform | $13.52B | 34.93 | 5.83% | 3.76% | 7.39% | 3.41% | |
71 Outperform | $8.05B | 25.11 | 10.99% | 4.38% | 4.58% | 12.65% | |
68 Neutral | $62.04B | 24.58 | 73.22% | 5.06% | 4.25% | -14.90% | |
65 Neutral | $8.18B | 75.29 | 3.06% | 1.89% | 0.63% | 258.59% | |
60 Neutral | $2.82B | 10.38 | 0.33% | 8508.19% | 5.98% | -17.49% | |
60 Neutral | $4.18B | ― | -4.79% | 4.33% | 9.58% | -3.85% |
* Real Estate Sector Average
Performance Comparison
SPG
Simon Property
158.12
18.99
13.65%
KIM
Kimco Realty
20.61
2.44
13.43%
MAC
Macerich
15.25
0.51
3.46%
REG
Regency Centers
71.34
13.34
23.00%
VNO
Vornado Realty
37.24
13.65
57.86%
BRX
Brixmor Property
24.79
3.45
16.17%
Simon Property Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -7.77%|
Next Earnings Date:Aug 04, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments, such as increased occupancy, strong leasing activity, and a dividend hike, along with challenges including decreased funds from operation, economic uncertainties affecting sales, and non-cash losses. The highlights slightly outweigh the lowlights, with a strong emphasis on strategic growth and solid financial positioning.Q1-2025 Updates
Positive Updates
Positive Start to Fiscal Year 2025
Simon Property Group started 2025 with results exceeding their plan, including the acquisition of The Mall Luxury Outlets in Italy and opening an outlet in Jakarta, Indonesia.
Strong Leasing Activity
Simon Property Group signed 1,500 leases for over 5.1 million square feet in the quarter, with new deals comprising 25% of this activity.
Increased Occupancy Rates
Malls and Premium outlet occupancy increased to 95.9%, up 40 basis points, while the mills occupancy increased to 98.4%, up 70 basis points compared to the prior year.
Rising Average Base Minimum Rents
Average base minimum rents for malls and outlets increased by 2.4% year-over-year, with the mills showing a 3.9% increase.
Dividend Increase
A dividend of $2.10 per share was announced for the second quarter, marking a 5% year-over-year increase.
Stable Guidance for 2025
Simon Property Group reaffirmed their full-year 2025 real estate FFO guidance range of $12.40 to $12.65 per share.
Positive Outlook on Debt Financing
Completed 12 secured loan transactions totaling approximately $2.6 billion with a strong fixed charge coverage ratio of 4.6 times.
Negative Updates
Decrease in Funds from Operation
First quarter funds from operation were $1.0 billion or $2.67 per share, down from $1.33 billion or $3.56 per share last year.
Impact of Tariffs and Economic Uncertainty
Tariffs and macroeconomic uncertainty are affecting retailer sales and could impact inventory levels, with potential effects on sales.
Non-Cash Losses and Challenges
First quarter results included a $0.17 per share loss from non-cash unrealized mark-to-market adjustments on Klepierre bonds and a $0.05 per share loss related to Catalyst Brands restructuring.
Company Guidance
During the first quarter of 2025 earnings call, Simon Property Group provided key guidance and performance metrics for the fiscal year. The company reaffirmed its full-year 2025 real estate Funds from Operations (FFO) guidance range of $12.40 to $12.65 per share, expecting results to trend towards the middle of the range due to macroeconomic uncertainties and potential impacts on retailer sales. In Q1, real estate FFO was reported at $2.95 per share, up from $2.91 the previous year, with domestic and international operations contributing $0.14 of growth driven by a 5% increase in lease income. The company signed 1,500 leases for over 5.1 million square feet, with 80% of leases expiring through 2025 already completed ahead of last year. Occupancy metrics showed positive trends, with malls and premium outlets at 95.9% and the mills at 98.4%, both showing increases compared to the prior year. Average base rents grew by 2.4% for malls and outlets, and 3.9% for mills. The quarter ended with a portfolio NOI growth of 3.6% year-over-year at constant currency. Simon Property Group's balance sheet remains robust with a net-debt to EBITDA ratio of 5.2 times and a fixed charge coverage ratio of 4.6 times. The company announced a second-quarter dividend of $2.10 per share, reflecting a 5% increase year-over-year.Simon Property Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Simon Property Approves Redomestication to Indiana
Neutral
May 15, 2025
On May 14, 2025, Simon Property Group, Inc. held its annual shareholders meeting where several key proposals were voted on, including the election of directors and the approval of redomestication to Indiana. The redomestication, effective May 15, 2025, transitioned the company and its operating partnership from Delaware to Indiana, aligning their legal governance with their headquarters’ state. This change did not impact the company’s operations, management, or stock trading on the NYSE.
The most recent analyst rating on (SPG) stock is a Buy with a $205.00 price target. To see the full list of analyst forecasts on Simon Property stock, see the SPG Stock Forecast page.
DividendsBusiness Operations and StrategyFinancial Disclosures
Simon Property Reports Strong Q1 2025 Performance
Positive
May 12, 2025
Simon Property Group reported its first quarter 2025 results, highlighting strong financial and operational performance despite a decrease in net income compared to the previous year. The company enhanced its portfolio with the acquisition of luxury outlets in Italy and the opening of Jakarta Premium Outlets in Indonesia. Simon’s net income for the quarter was impacted by an unrealized loss related to Klépierre exchangeable bonds, while its Real Estate Funds From Operations (FFO) saw a slight increase. The company also reported a rise in domestic property Net Operating Income and occupancy rates, and declared a higher quarterly dividend for its shareholders.
The most recent analyst rating on (SPG) stock is a Buy with a $205.00 price target. To see the full list of analyst forecasts on Simon Property stock, see the SPG Stock Forecast page.
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.