Simon Property (SPG) AI Stock Analysis

• Market Cap: $62.20B
• Dividend Yield: 5.05%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.96
• Revenue Growth: 3.36%
• EPS Growth: -10.55%
• Country: US
• Employees: 2,600
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Retail
• EPS (TTM): 1.70
• Shares Outstanding: 326,417,050
• 10 Day Avg. Volume: 1,630,210
• 30 Day Avg. Volume: 1,443,160
• 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: 1.26
• Enterprise Value/Revenue: 13.07
• Enterprise Value/Gross Profit: 15.79
• Enterprise Value/Ebitda: 16.94
• 1Y Price Target: $181.50
• Price Target Upside: 9.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 73 Outperform
• Price Target: $184.00 ▲(11.38% Upside)

Simon Property Group's strong financial performance and strategic acquisitions are significant strengths, contributing to a high earnings call score. The company's robust cash flow and profitability metrics are offset by high leverage, which poses a risk to financial stability. Technical indicators suggest a positive short-term trend, while valuation metrics indicate moderate attractiveness. Overall, the stock presents a balanced risk-reward profile with potential for growth, albeit with caution due to leverage and economic uncertainties.

Positive Factors

Acquisition

The acquisition of Brickell City Centre, increasing ownership to 100%, enhances SPG's portfolio with high-quality assets.

Leasing Activity

Strong leasing activity across the portfolio highlights positive momentum for the company despite macroeconomic uncertainties.

Valuation

SPG shares are considered inexpensive and reasonably valued, supported by an excellent balance sheet and real estate quality.

Negative Factors

Debt Maturity

$9 billion of low-cost debt maturing in 2025-2026 could dilute earnings growth, posing a financial challenge.

Earnings Performance

1Q headline FFO per share of $2.67 fell short of consensus estimates of $2.91, disappointing market expectations.

Retail Sales

Reported tenant sales declined to $733 per square foot from $739, raising concerns about consumer spending sustainability.

Simon Property Business Overview & Revenue Model

Company Description

Simon Property Group, Inc. (SPG) is a leading real estate investment trust (REIT) based in the United States, primarily engaged in the ownership, management, and development of retail real estate properties. The company's portfolio includes a diverse range of shopping malls, premium outlets, and mixed-use properties across North America and Asia. Simon focuses on creating high-quality retail environments that enhance the customer experience while offering a wide variety of retail brands and dining options.

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. Overall, the company maintains a strong financial position with room for growth, albeit with some caution due to leverage concerns.

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	5.99B	5.96B	5.66B	5.29B	5.12B	4.61B
Gross Profit	4.96B	4.92B	4.63B	4.29B	4.15B	3.72B
EBITDA	4.63B	5.02B	4.89B	4.59B	4.85B	3.41B
Net Income	2.05B	2.37B	2.28B	2.14B	2.25B	1.11B
Balance Sheet
Total Assets	32.50B	32.41B	34.28B	33.01B	33.78B	34.79B
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.40B	2.17B	621.63M	533.94M	1.01B
Total Debt	25.27B	24.78B	26.52B	25.46B	25.83B	27.24B
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

• Technical Analysis Sentiment: Positive
• Last Price: 165.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 165.2 is above the 20-day moving average (MA) of 164.73, above the 50-day MA of 162.29, and below the 200-day MA of 165.56, indicating a neutral trend. The MACD of 1.01 indicates Positive momentum. The RSI at 51.96 is Neutral, neither overbought nor oversold. The STOCH value of 48.81 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	81 Outperform	$26.19B	33.54	5.99%	3.87%	5.66%	2.98%
O	78 Outperform	$52.52B	56.04	2.35%	5.56%	15.45%	-5.00%
KIM	76 Outperform	$14.09B	25.11	5.63%	4.76%	10.46%	56.11%
SPG	73 Outperform	$62.20B	23.34	79.83%	5.05%	3.36%	-10.55%
NNN	73 Outperform	$7.90B	19.89	9.18%	5.63%	4.82%	-5.18%
FRT	71 Outperform	$7.94B	23.19	11.04%	4.81%	6.00%	15.77%
Sector *	63 Neutral	$6.78B	12.96	-0.54%	7.46%	3.69%	-24.78%

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.

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.

Simon Property Approves Redomestication to Indiana

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.

Simon Property Reports Strong Q1 2025 Performance

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.