Simon Property (SPG) AI Stock Analysis

• Market Cap: $60.44B
• Dividend Yield: 4.63%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.82
• 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: 1,049,286
• 30 Day Avg. Volume: 1,262,848
• 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: 1.44
• Enterprise Value/Revenue: 14.17
• Enterprise Value/Gross Profit: 17.01
• Enterprise Value/Ebitda: 18.55
• 1Y Price Target: $192.64
• Price Target Upside: 4.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 6.85
• Revenue Forecast (FY): $5.69B

• Rating: 74 Outperform
• Price Target: $198.00 ▲(6.95% Upside)

Simon Property Group's strong earnings call performance and robust financials are the primary drivers of its score. The company's profitability and cash flow generation are commendable, but high leverage poses a risk. Technical indicators suggest moderate bullish momentum, while valuation metrics indicate potential overvaluation. The attractive dividend yield provides a positive offset.

Positive Factors

Strong Cash Flow Generation

Strong cash flow generation indicates efficient operations and provides the company with flexibility to invest in growth opportunities and manage debt.

Successful Acquisition

Completing the acquisition enhances portfolio quality and operational efficiencies, potentially boosting long-term returns and competitive positioning.

High Occupancy Rates

High occupancy rates reflect strong demand and effective property management, supporting stable revenue streams and long-term growth potential.

Negative Factors

High Leverage

High leverage poses a risk by increasing financial vulnerability, especially in volatile markets, and may limit strategic flexibility.

Interest Expense Increase

Rising interest expenses can erode profitability and cash flow, potentially impacting the company's ability to invest in growth or pay dividends.

Challenges in Las Vegas Market

Challenges in key markets like Las Vegas can hinder revenue growth and highlight the need for strategic adjustments to address local market conditions.

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, 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	3.80B	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: 185.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 185.14 is above the 20-day moving average (MA) of 182.71, above the 50-day MA of 180.99, and above the 200-day MA of 167.58, indicating a bullish trend. The MACD of 1.46 indicates Negative momentum. The RSI at 58.64 is Neutral, neither overbought nor oversold. The STOCH value of 80.48 is Negative, 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
FRT	77 Outperform	$8.53B	24.99	10.92%	4.61%	6.05%	14.70%
NNN	76 Outperform	$7.77B	19.59	8.91%	5.77%	4.53%	-3.46%
SPG	74 Outperform	$60.44B	25.46	90.26%	4.63%	4.18%	-5.05%
O	72 Outperform	$53.00B	53.85	2.48%	5.60%	11.23%	1.82%
KIM	70 Outperform	$13.88B	24.58	5.68%	4.76%	7.99%	55.05%
REG	69 Neutral	$12.96B	32.41	6.07%	4.07%	5.38%	3.13%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Simon Property Corporate Events

Simon Property Group’s Earnings Call Highlights Growth and Optimism

The latest earnings call from Simon Property Group revealed a generally positive sentiment, driven by strong financial performance, successful acquisitions, and growth in leasing and occupancy rates. While concerns were raised about tariffs and specific market underperformance, particularly in Las Vegas, the overall tone was optimistic as positive developments outweighed the challenges.

Simon Property Group Reports Strong Q3 2025 Results

Simon Property Group, a leading real estate investment trust, specializes in owning premier shopping, dining, entertainment, and mixed-use destinations across North America, Europe, and Asia.

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.

The most recent analyst rating on (SPG) stock is a Buy with a $198.00 price target. To see the full list of analyst forecasts on Simon Property stock, see the SPG Stock Forecast page.