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Simon Property Stock Rises 12.3% in Three Months: Will This Continue?
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Key Takeaways
SPG shares rose 12.3% in three months, outperforming an industry decline of 0.3%.
The omnichannel retail strategy and mixed-use projects are driving growth for Simon Property.
SPG ended Q2 2025 with $9.2B in liquidity and strong investment-grade credit ratings.
Shares of Simon Property Group (SPG - Free Report) have gained 12.3% over the past three months against the industry's 0.3% fall.
A portfolio of premium retail assets in the United States and abroad, and efforts to support omnichannel retailing and develop mixed-use assets, are encouraging. Also, accretive buyouts and redevelopment efforts augur well for long-term growth. Balance-sheet strength will help it tap growth in an improving environment.
Analysts seem bullish on this Zacks Rank #3 (Hold) stock. The Zacks Consensus Estimate for 2025 AFFO per share has been revised marginally northward to $12.51 over the past two months.
Image Source: Zacks Investment Research
Factors Behind SPG Stock’s Price Surge
Simon Property enjoys a wide exposure to retail assets across the United States. The company’s ownership stake in Klépierre facilitates the expansion of its global footprint, which gives it access to premium retail assets in Europe's high-barrier-to-entry markets. In an improving leasing environment, the retail REIT is poised to benefit from its superior assets at premium locations.
Simon Property’s adoption of an omnichannel strategy and successful tie-ups with premium retailers have paid off well in recent years. Particularly, the company’s online retail platform, woven with an omnichannel strategy, looks positioned for its long-term growth. This will eventually augur higher revenue generation for several brands and drive demand for Simon’s properties. Moreover, SPG is focused on creating mixed-use destinations. In 2025, Simon Property expects to begin the development of four to five mixed-use destinations with an estimated expenditure of $400-$500 million.
The company has been restructuring its portfolio, aiming at premium acquisitions and transformative redevelopments. For the past several years, the company has been investing billions to transform its properties, focused on creating value and driving footfall at the properties. In June 2025, Simon Property purchased Swire Properties’ stake in Brickell City Centre’s open-air shopping center and will now wholly own and manage the asset. With more than 90 retail stores, including the likes of Apple, Zara, and Coach and more than 15 premium dining and entertainment locations, the center will act as a major footfall driver for Simon Property.
Simon Property is making efforts to bolster its financial flexibility. This enabled the company to exit the second quarter of 2025 with $9.2 billion of liquidity. As of June 30, 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. This retail REIT has increased its dividend 13 times in the last five years. Given the company’s solid operating platform, opportunities for growth and a decent financial position compared with the industry, this dividend rate is expected to be sustainable over the long run.
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 AHR’s 2025 FFO per share has been revised northward marginally over the past week to $1.66.
The consensus estimate for TRNO’s 2025 FFO per share has been revised upward marginally to $2.61 over the past month.
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 Rises 12.3% in Three Months: Will This Continue?
Key Takeaways
Shares of Simon Property Group (SPG - Free Report) have gained 12.3% over the past three months against the industry's 0.3% fall.
A portfolio of premium retail assets in the United States and abroad, and efforts to support omnichannel retailing and develop mixed-use assets, are encouraging. Also, accretive buyouts and redevelopment efforts augur well for long-term growth. Balance-sheet strength will help it tap growth in an improving environment.
Analysts seem bullish on this Zacks Rank #3 (Hold) stock. The Zacks Consensus Estimate for 2025 AFFO per share has been revised marginally northward to $12.51 over the past two months.
Image Source: Zacks Investment Research
Factors Behind SPG Stock’s Price Surge
Simon Property enjoys a wide exposure to retail assets across the United States. The company’s ownership stake in Klépierre facilitates the expansion of its global footprint, which gives it access to premium retail assets in Europe's high-barrier-to-entry markets. In an improving leasing environment, the retail REIT is poised to benefit from its superior assets at premium locations.
Simon Property’s adoption of an omnichannel strategy and successful tie-ups with premium retailers have paid off well in recent years. Particularly, the company’s online retail platform, woven with an omnichannel strategy, looks positioned for its long-term growth. This will eventually augur higher revenue generation for several brands and drive demand for Simon’s properties. Moreover, SPG is focused on creating mixed-use destinations. In 2025, Simon Property expects to begin the development of four to five mixed-use destinations with an estimated expenditure of $400-$500 million.
The company has been restructuring its portfolio, aiming at premium acquisitions and transformative redevelopments. For the past several years, the company has been investing billions to transform its properties, focused on creating value and driving footfall at the properties. In June 2025, Simon Property purchased Swire Properties’ stake in Brickell City Centre’s open-air shopping center and will now wholly own and manage the asset. With more than 90 retail stores, including the likes of Apple, Zara, and Coach and more than 15 premium dining and entertainment locations, the center will act as a major footfall driver for Simon Property.
Simon Property is making efforts to bolster its financial flexibility. This enabled the company to exit the second quarter of 2025 with $9.2 billion of liquidity. As of June 30, 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. This retail REIT has increased its dividend 13 times in the last five years. Given the company’s solid operating platform, opportunities for growth and a decent financial position compared with the industry, this dividend rate is expected to be sustainable over the long run.
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 American Healthcare REIT, Inc. (AHR - Free Report) and Terreno Realty (TRNO - Free Report) , each 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 AHR’s 2025 FFO per share has been revised northward marginally over the past week to $1.66.
The consensus estimate for TRNO’s 2025 FFO per share has been revised upward marginally to $2.61 over the past month.
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.