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Simon Property Stock Gains 15.7% in Three Months: Will the Trend Last?
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Key Takeaways
SPG stock has surged 15.7% in three months, outpacing the industry's 7.7% gain.
SPG acquires Swire Properties' full interest in the retail and parking assets at Brickell City Centre.
SPG's dividend hikes boasts shareholder value; solid balance sheet bode well for long-term growth.
Shares of Simon Property Group (SPG - Free Report) have gained 15.7% over the past three months, outperforming the industry's 7.7% growth.
The company boasts a portfolio of premium retail properties both in the United States and internationally. With healthy near-term demand for retail real estate, the company is well-positioned to benefit from increased leasing activity, high occupancy rates and continued rent growth.
SPG’s strategic emphasis on enhancing omnichannel retail capabilities and expanding its mixed-use developments is promising. Additionally, accretive acquisitions support its long-term growth outlook. A strong balance sheet further underpins these growth initiatives.
Image Source: Zacks Investment Research
Let’s check out the possible factors behind the surge in the stock price for this Zacks Rank #3 (Hold) company and see whether the trend will last or not.
This retail REIT has seen strong results from its omnichannel approach and strategic partnerships with premium retailers. Its online retail platform, combined with its integrated retail strategy, is expected to support long-term growth. Further, SPG’s efforts to explore the mixed-use development option, which has gained immense popularity in recent years, have enabled it to tap growth opportunities in areas where people prefer to live, work, play, stay and shop.
During the first quarter of 2025, it signed 259 new leases and 550 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across its U.S. Malls and Premium Outlets portfolio. Given the favorable retail real estate environment, this leasing momentum is expected to continue in the upcoming quarters.
Simon Property has been actively restructuring its portfolio through strategic premium acquisitions and major redevelopments. On June 27, 2025, Simon Property acquired Swire Properties' interest in the retail and parking at Brickell City Centre. This move will boost Simon’s portfolio, enhance the vibrant collective offerings, attract more shoppers and contribute to long-term growth. Over the past few years, it has invested billions to transform its properties, focused on creating value and driving footfall at the properties. With the brands generating a decent amount from digital sales, investments in them seem a strategic fit for Simon Property.
Simon Property is making efforts to bolster its financial flexibility. This enabled the company to exit the first quarter of 2025 with $10.1 billion of liquidity. As of March 31, 2025, SPG’s total secured debt to total assets was 16%, while the fixed-charge coverage ratio was 4.6, ahead of the required level. Moreover, the company enjoys a corporate investment-grade credit rating of A- (stable outlook) from Standard and Poor's and a senior unsecured rating of A3 (stable outlook) from Moody’s. With solid balance sheet strength and available capital resources, it remains well-poised to tide over any mayhem and bank on growth opportunities.
Solid dividend payouts are the biggest enticements for REIT investors, and Simon Property is committed to boosting shareholder wealth. On May 12, the company announced a quarterly common stock dividend of $2.10 for the first quarter of 2025. The dividend was paid out on June 30 to its shareholders of record as of June 10, 2025. The retail REIT has increased its dividend 13 times in the past five years, and its payout has grown 9.09% over the same period. This spate of dividend increases brings additional relief to investors and reaffirms confidence in this retail landlord.
With the above-mentioned factors, we believe the rising trend in the stock is expected to continue in the near term.
Risks Likely to Affect SPG’s Positive Trend
Growing e-commerce adoption and high debt burden raise concerns for Simon. Macroeconomic uncertainty can result in strain on retailers' balance sheets, leading to bankruptcies.
The Zacks Consensus Estimate for CURB’s 2025 FFO per share stands at $1.00, indicating an increase of 26.6% from the year-ago reported figure.
The Zacks Consensus Estimate for VICI’s 2025 FFO per share is pinned at $2.35, suggesting year-over-year growth of 4%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Simon Property Stock Gains 15.7% in Three Months: Will the Trend Last?
Key Takeaways
Shares of Simon Property Group (SPG - Free Report) have gained 15.7% over the past three months, outperforming the industry's 7.7% growth.
The company boasts a portfolio of premium retail properties both in the United States and internationally. With healthy near-term demand for retail real estate, the company is well-positioned to benefit from increased leasing activity, high occupancy rates and continued rent growth.
SPG’s strategic emphasis on enhancing omnichannel retail capabilities and expanding its mixed-use developments is promising. Additionally, accretive acquisitions support its long-term growth outlook. A strong balance sheet further underpins these growth initiatives.
Image Source: Zacks Investment Research
Let’s check out the possible factors behind the surge in the stock price for this Zacks Rank #3 (Hold) company and see whether the trend will last or not.
This retail REIT has seen strong results from its omnichannel approach and strategic partnerships with premium retailers. Its online retail platform, combined with its integrated retail strategy, is expected to support long-term growth. Further, SPG’s efforts to explore the mixed-use development option, which has gained immense popularity in recent years, have enabled it to tap growth opportunities in areas where people prefer to live, work, play, stay and shop.
During the first quarter of 2025, it signed 259 new leases and 550 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across its U.S. Malls and Premium Outlets portfolio. Given the favorable retail real estate environment, this leasing momentum is expected to continue in the upcoming quarters.
Simon Property has been actively restructuring its portfolio through strategic premium acquisitions and major redevelopments. On June 27, 2025, Simon Property acquired Swire Properties' interest in the retail and parking at Brickell City Centre. This move will boost Simon’s portfolio, enhance the vibrant collective offerings, attract more shoppers and contribute to long-term growth. Over the past few years, it has invested billions to transform its properties, focused on creating value and driving footfall at the properties. With the brands generating a decent amount from digital sales, investments in them seem a strategic fit for Simon Property.
Simon Property is making efforts to bolster its financial flexibility. This enabled the company to exit the first quarter of 2025 with $10.1 billion of liquidity. As of March 31, 2025, SPG’s total secured debt to total assets was 16%, while the fixed-charge coverage ratio was 4.6, ahead of the required level. Moreover, the company enjoys a corporate investment-grade credit rating of A- (stable outlook) from Standard and Poor's and a senior unsecured rating of A3 (stable outlook) from Moody’s. With solid balance sheet strength and available capital resources, it remains well-poised to tide over any mayhem and bank on growth opportunities.
Solid dividend payouts are the biggest enticements for REIT investors, and Simon Property is committed to boosting shareholder wealth. On May 12, the company announced a quarterly common stock dividend of $2.10 for the first quarter of 2025. The dividend was paid out on June 30 to its shareholders of record as of June 10, 2025. The retail REIT has increased its dividend 13 times in the past five years, and its payout has grown 9.09% over the same period. This spate of dividend increases brings additional relief to investors and reaffirms confidence in this retail landlord.
With the above-mentioned factors, we believe the rising trend in the stock is expected to continue in the near term.
Risks Likely to Affect SPG’s Positive Trend
Growing e-commerce adoption and high debt burden raise concerns for Simon. Macroeconomic uncertainty can result in strain on retailers' balance sheets, leading to bankruptcies.
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Curbline Properties Corp. (CURB - Free Report) and VICI Properties (VICI - Free Report) , each currently carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CURB’s 2025 FFO per share stands at $1.00, indicating an increase of 26.6% from the year-ago reported figure.
The Zacks Consensus Estimate for VICI’s 2025 FFO per share is pinned at $2.35, suggesting year-over-year growth of 4%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.