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Simon Property (SPG)
NYSE:SPG
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Simon Property (SPG) AI Stock Analysis

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SPG

Simon Property

(NYSE:SPG)

Rating:73Outperform
Price Target:
$184.00
â–²(1.37% 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
Acquisitions
SPG made a very high quality acquisition of Brickell City Centre, in Miami, FL for $512m, increasing the company's ownership stake from 25% to 100%.
Leasing Activity
SPG continued to highlight strong leasing activity across the portfolio, despite macro headline uncertainty.
Negative Factors
Earnings
1Q headline FFO per share of $2.67 fell short of consensus estimates of $2.91.
Sales Performance
Sales productivity remained muted with lingering questions on consumer spending sustainability.

Simon Property (SPG) vs. SPDR S&P 500 ETF (SPY)

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 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Highlights income from different business areas, revealing which segments drive growth and profitability, and indicating strategic focus or potential vulnerabilities.
Chart InsightsSimon Property's lease income has shown consistent growth, reflecting strong leasing activity and high occupancy rates, as highlighted in the latest earnings call. The acquisition of Brickell City Centre is expected to further boost NOI. However, the 'Other' revenue segment has experienced volatility, with recent declines potentially linked to economic uncertainties and retailer bankruptcies. Management's increased FFO guidance and strategic acquisitions signal confidence in overcoming challenges like interest rate impacts and geopolitical risks, positioning the company for continued growth.
Data provided by:Main Street Data

Simon Property Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Neutral
The earnings call reflected strong financial performance and strategic acquisitions, particularly the Brickell City Centre. However, challenges remain with retailer bankruptcies and economic uncertainties that require cautious optimism moving forward.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Real estate FFO was $3.05 per share, a 4.1% growth from the prior year. Second quarter funds from operation were $1.19 billion or $3.15 per share, marking an 8.6% growth compared to last year.
Occupancy and Leasing Success
The Malls and Premium Outlets ended the second quarter with 96.0% occupancy, while The Mills achieved a record 99.3% occupancy. Approximately 1,000 leases for more than 3.6 million square feet were signed in the quarter.
Dividend Increase
The company announced a dividend of $2.15 per share for the third quarter, a year-over-year increase of $0.10 or 4.9%.
Acquisition of Brickell City Centre
Simon Property Group acquired their partner's interest in Brickell City Centre for $512 million, seeing it as a long-term investment with growth potential.
Negative Updates
Impact of Retailer Bankruptcies
Retailer bankruptcies accounted for approximately 1.8 million square feet this quarter, including significant impacts from Forever 21.
Interest Expense Challenges
Lower interest income and higher interest expense resulted in a $0.07 drag year-over-year.
Geopolitical and Economic Uncertainty
The company expressed caution due to geopolitical uncertainty, tariffs, and interest rate volatility, impacting future outlook.
Company Guidance
During the Simon Property Group's second-quarter 2025 earnings call, the company provided guidance indicating an increase in their full-year 2025 real estate funds from operations (FFO) guidance range to $12.45 to $12.65 per share, up from $12.24 last year. This represents an increase of $0.05 at the lower end of the range and $0.03 at the midpoint. The second quarter saw a FFO of $3.05 per share, marking a 4.1% increase from the previous year. Additionally, Simon Property reported a 4.2% increase in domestic property net operating income (NOI) for the quarter and 3.8% for the first half of the year. Portfolio NOI, inclusive of international properties at constant currency, grew by 4.7% for the quarter. Occupancy at Malls and Premium Outlets reached 96.0%, with The Mills achieving a record 99.3% occupancy. The company also announced a dividend increase to $2.15 per share for the third quarter, representing a 4.9% year-over-year increase.

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
78
Positive
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
65
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.99B5.96B5.66B5.29B5.12B4.61B
Gross Profit4.96B4.92B4.63B4.29B4.15B3.72B
EBITDA4.63B5.02B4.89B4.59B4.85B3.41B
Net Income2.05B2.37B2.28B2.14B2.25B1.11B
Balance Sheet
Total Assets32.50B32.41B34.28B33.01B33.78B34.79B
Cash, Cash Equivalents and Short-Term Investments1.38B1.40B2.17B621.63M533.94M1.01B
Total Debt25.27B24.78B26.52B25.46B25.83B27.24B
Total Liabilities29.23B28.81B30.60B29.19B29.38B31.13B
Stockholders Equity2.61B2.94B3.02B3.14B3.36B3.04B
Cash Flow
Free Cash Flow3.05B3.06B3.14B3.12B3.11B1.84B
Operating Cash Flow3.87B3.81B3.93B3.77B3.64B2.33B
Investing Cash Flow337.08M1.41B-1.36B-626.56M-552.76M-3.98B
Financing Cash Flow-4.08B-4.99B-2.02B-3.05B-3.56B1.99B

Simon Property Technical Analysis

Technical Analysis Sentiment
Positive
Last Price181.52
Price Trends
50DMA
167.58
Positive
100DMA
162.20
Positive
200DMA
166.20
Positive
Market Momentum
MACD
3.76
Negative
RSI
68.14
Neutral
STOCH
86.18
Negative
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 181.52 is above the 20-day moving average (MA) of 173.65, above the 50-day MA of 167.58, and above the 200-day MA of 166.20, indicating a bullish trend. The MACD of 3.76 indicates Negative momentum. The RSI at 68.14 is Neutral, neither overbought nor oversold. The STOCH value of 86.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPG.

Simon Property Risk Analysis

Simon Property disclosed 36 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 (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$26.40B33.735.99%3.86%5.66%2.98%
79
Outperform
$15.07B26.855.63%4.40%10.46%56.11%
77
Outperform
$53.72B56.332.35%5.49%15.45%-5.00%
75
Outperform
$7.95B20.039.18%5.50%4.82%-5.18%
74
Outperform
$8.61B25.1411.04%4.40%6.00%15.77%
73
Outperform
$67.47B25.3279.83%4.64%3.36%-10.55%
53
Neutral
$1.23B2.98-5.63%5.85%-6.20%-79.02%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SPG
Simon Property
179.86
23.29
14.88%
KIM
Kimco Realty
22.48
0.25
1.12%
NNN
National Retail Properties
42.53
-3.02
-6.63%
O
Realty Income
57.95
-1.06
-1.80%
REG
Regency Centers
72.23
2.30
3.29%
FRT
Federal Realty
100.07
-10.58
-9.56%

Simon Property Corporate Events

Private Placements and FinancingM&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Simon Property Reports Strong Q2 2025 Financial Results
Positive
Aug 4, 2025

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.

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 11, 2025