Simon Property (SPG) AI Stock Analysis

• Market Cap: $69.08B
• Dividend Yield: 4.63%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.96
• Revenue Growth: 3.36%
• EPS Growth: -10.55%
• Country: US
• Employees: 2,600
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 1.70
• Shares Outstanding: 326,484,770
• 10 Day Avg. Volume: 2,195,287
• 30 Day Avg. Volume: 1,808,969
• PEG Ratio: 5.69
• Price to Book (P/B): 19.09
• Price to Sales (P/S): 9.42
• P/FCF Ratio: 18.36
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 12.99
• Enterprise Value/Gross Profit: 15.63
• Enterprise Value/Ebitda: 16.40
• 1Y Price Target: $186.83
• Price Target Upside: 2.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 75 Outperform
• Price Target: $205.00 ▲(12.26% Upside)

Simon Property Group demonstrates strong financial performance and strategic growth through acquisitions, reflected in the increased FFO guidance. However, high leverage and economic uncertainties pose risks. The technical indicators suggest bullish momentum, but the stock's premium valuation requires careful consideration.

Positive Factors

Occupancy Rates

High occupancy rates indicate strong demand for Simon Property's retail spaces, enhancing revenue stability and showcasing effective property management.

Dividend Growth

Consistent dividend growth reflects strong cash flow and financial health, providing value to shareholders and indicating confidence in future earnings.

Strategic Acquisitions

Strategic acquisitions like Brickell City Centre enhance Simon's portfolio, offering growth potential and strengthening its market position in key locations.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially in volatile markets, potentially impacting long-term financial stability.

Retailer Bankruptcies

Retailer bankruptcies reduce occupancy and rental income, posing a challenge to maintaining revenue growth and impacting property utilization.

Economic Uncertainty

Economic uncertainties can affect consumer spending and tenant stability, potentially impacting Simon's revenue and operational strategies.

Simon Property Business Overview & Revenue Model

Company Description

Simon 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 Money

Simon Property Group generates revenue primarily through leasing retail space to tenants in its shopping malls and outlet centers. The company's key revenue streams include rental income from long-term leases and percentage rents, which are based on tenants' sales performance. Additionally, SPG earns income from management services, property development, and joint ventures with other real estate investors. Significant partnerships with leading retail brands and a focus on maintaining high occupancy rates contribute to steady revenue generation. The company's diversified portfolio and strategic acquisitions also bolster its earnings potential.

Simon Property Financial Statement Overview

Summary

Simon Property demonstrates strong profitability and cash flow generation capabilities, with solid margins and efficient cash management. However, the high debt-to-equity ratio poses a potential risk to financial stability, warranting 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.03B	5.96B	5.66B	5.29B	5.12B	4.61B
Gross Profit	5.02B	4.92B	4.63B	4.29B	4.15B	3.72B
EBITDA	4.78B	5.02B	4.89B	4.59B	4.85B	3.41B
Net Income	2.12B	2.37B	2.28B	2.14B	2.25B	1.11B
Balance Sheet
Total Assets	33.30B	32.41B	34.28B	33.01B	33.78B	34.79B
Cash, Cash Equivalents and Short-Term Investments	1.23B	1.40B	2.17B	621.63M	533.94M	1.01B
Total Debt	25.92B	24.78B	26.52B	25.46B	25.83B	27.24B
Total Liabilities	30.20B	28.81B	30.60B	29.19B	29.38B	31.13B
Stockholders Equity	2.45B	2.94B	3.02B	3.14B	3.36B	3.04B
Cash Flow
Free Cash Flow	3.14B	3.06B	3.14B	3.12B	3.11B	1.84B
Operating Cash Flow	4.02B	3.81B	3.93B	3.77B	3.64B	2.33B
Investing Cash Flow	-268.27M	1.41B	-1.36B	-626.56M	-552.76M	-3.98B
Financing Cash Flow	-3.76B	-4.99B	-2.02B	-3.05B	-3.56B	1.99B

Simon Property Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 182.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPG, the sentiment is Positive. The current price of 182.61 is above the 20-day moving average (MA) of 180.69, above the 50-day MA of 172.35, and above the 200-day MA of 164.95, indicating a bullish trend. The MACD of 2.92 indicates Positive momentum. The RSI at 62.18 is Neutral, neither overbought nor oversold. The STOCH value of 77.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPG.

Simon Property Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REG	77 Outperform	25.99B	33.29	5.95%	3.97%	5.66%	2.98%
O	77 Outperform	54.84B	58.52	2.34%	5.35%	15.45%	-5.00%
KIM	76 Outperform	14.65B	26.10	3.86%	4.66%	10.46%	56.11%
SPG	75 Outperform	$69.08B	26.06	79.83%	4.63%	3.36%	-10.55%
NNN	74 Outperform	7.93B	19.97	9.10%	5.57%	4.82%	-5.18%
FRT	74 Outperform	8.61B	25.14	10.65%	4.44%	6.00%	15.77%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Simon Property Corporate Events

Simon Property Reports Strong Q2 2025 Financial Results

On August 4, 2025, Simon Property Group reported its financial results for the second quarter ending June 30, 2025, showcasing a strong performance with a net income increase to $556.1 million and a rise in Real Estate Funds From Operations (FFO) to $1.154 billion. The company also announced an increase in its quarterly dividend and improved its full-year 2025 Real Estate FFO guidance, reflecting its strategic investments and robust balance sheet. Additionally, Simon completed a significant acquisition in Miami and secured $3.8 billion in loan transactions, enhancing its liquidity position.