Simon Property (SPG) AI Stock Analysis

• Market Cap: $60.37B
• Dividend Yield: 4.62%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.78
• Revenue Growth: 4.18%
• EPS Growth: -5.05%
• Country: US
• Employees: 2,600
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 1.86
• Shares Outstanding: 326,462,070
• 10 Day Avg. Volume: 1,540,444
• 30 Day Avg. Volume: 1,286,860
• 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: 1.42
• Enterprise Value/Revenue: 13.91
• Enterprise Value/Gross Profit: 16.70
• Enterprise Value/Ebitda: 18.20
• 1Y Price Target: $194.27
• Price Target Upside: 5.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 6.92
• Revenue Forecast (FY): $5.70B

• Rating: 70 Outperform
• Price Target: $198.00 ▲(7.07% Upside)

Simon Property Group's strong earnings call performance and robust financial metrics are key strengths, driving a positive outlook. However, high leverage and technical indicators suggest caution. The stock's moderate valuation and attractive dividend yield provide a balanced investment opportunity.

Positive Factors

Revenue Growth

Steady revenue growth indicates a stable upward trajectory, reflecting the company's ability to maintain market position and attract tenants.

Successful Acquisitions

Acquisitions like Taubman enhance portfolio value and operational efficiencies, strengthening long-term competitive positioning.

Cash Flow Generation

Strong cash flow generation supports financial flexibility, enabling reinvestment in properties and shareholder returns.

Negative Factors

High Leverage

Significant leverage poses a risk in volatile markets, potentially impacting financial stability and limiting strategic options.

Interest Expense Increase

Rising interest expenses can erode profitability, affecting cash flow and reducing funds available for growth initiatives.

Challenges in Las Vegas Market

Challenges in key markets like Las Vegas can hinder overall revenue growth and reflect broader market vulnerabilities.

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 space to tenants in its shopping centers and malls. The company earns rental income from long-term leases with various tenants, which can include anchor stores, specialty retailers, and dining establishments. In addition to base rent, SPG often collects percentage rents, which are fees based on tenants' sales performance, providing an incentive for both parties to drive foot traffic and sales. The company also earns income from property management fees and development projects, as well as from strategic partnerships and joint ventures that enhance its portfolio. Key partnerships with major retail brands and ongoing investments in property development and renovations further contribute to SPG's earnings, allowing it to maintain a competitive edge in the retail real estate market.

Simon Property Financial Statement Overview

Summary

Simon Property demonstrates strong profitability and cash flow generation with consistent revenue growth. However, the high leverage on the balance sheet presents a potential risk, requiring careful management to maintain financial stability. The company is well-positioned in its industry but should focus on reducing debt levels to enhance financial resilience.

Income Statement

Simon Property's income statement shows strong profitability with a high gross profit margin of 83.33% and a solid net profit margin of 36.29% for TTM. Revenue growth is steady at 2.00% TTM, indicating a stable upward trajectory. However, the EBIT margin has slightly decreased from previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 10.98, indicating significant leverage, which poses a risk in volatile markets. Return on equity is robust at 86.35%, showcasing effective use of equity to generate profits. The equity ratio is low, highlighting potential vulnerability to financial instability.

Cash Flow

Cash flow analysis reveals a healthy free cash flow growth rate of 20.94% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is exceptionally high, suggesting efficient cash conversion. However, the free cash flow to net income ratio is slightly below 1, indicating room for improvement in cash retention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.16B	5.96B	5.66B	5.29B	5.12B	4.61B
Gross Profit	5.13B	4.92B	4.63B	4.29B	4.15B	3.72B
EBITDA	4.70B	5.02B	4.89B	4.59B	4.85B	3.41B
Net Income	2.23B	2.37B	2.28B	2.14B	2.25B	1.11B
Balance Sheet
Total Assets	33.60B	32.41B	34.28B	33.01B	33.78B	34.79B
Cash, Cash Equivalents and Short-Term Investments	1.55B	1.40B	2.17B	621.63M	533.94M	1.01B
Total Debt	26.32B	24.78B	26.52B	25.46B	25.83B	27.24B
Total Liabilities	30.63B	28.81B	30.60B	29.19B	29.38B	31.13B
Stockholders Equity	2.35B	2.94B	3.02B	3.14B	3.36B	3.04B
Cash Flow
Free Cash Flow	3.12B	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	-1.23B	1.41B	-1.36B	-626.56M	-552.76M	-3.98B
Financing Cash Flow	-3.41B	-4.99B	-2.02B	-3.05B	-3.56B	1.99B

Simon Property Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 184.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 184.93 is above the 20-day moving average (MA) of 181.95, above the 50-day MA of 179.08, and above the 200-day MA of 166.00, indicating a bullish trend. The MACD of 1.31 indicates Negative momentum. The RSI at 60.61 is Neutral, neither overbought nor oversold. The STOCH value of 78.47 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
NNN	78 Outperform	$7.55B	19.05	8.91%	5.94%	4.53%	-3.46%
FRT	77 Outperform	$8.80B	25.76	10.92%	4.37%	6.05%	14.70%
O	75 Outperform	$51.82B	52.65	2.48%	5.64%	11.23%	1.82%
SPG	70 Outperform	$60.37B	25.43	90.26%	4.62%	4.18%	-5.05%
REG	70 Outperform	$12.54B	31.36	6.07%	4.24%	5.38%	3.13%
KIM	69 Neutral	$13.54B	23.98	5.68%	4.98%	7.99%	55.05%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Simon Property Corporate Events

Simon Property Reports Strong Q3 2025 Performance

Simon Property Group reported strong financial and operational performance for the third quarter of 2025, with significant increases in net income and funds from operations compared to the previous year. The company completed the acquisition of the remaining 12% interest in The Taubman Realty Group and raised its quarterly dividend by 4.8% to $2.20 per share. Additionally, Simon Property Group increased its full-year 2025 Real Estate FFO per share guidance, indicating positive future prospects.