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5 Reasons to Add Simon Property Stock to Your Portfolio
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Key Takeaways
SPG benefits from a premium U.S. and international retail portfolio.
Simon Property saw strong leasing activity, with 96.4% occupancy.
SPG boosted liquidity, expanded via acquisitions and redevelopments and raised its quarterly dividend.
The retail real estate market is showing renewed resilience as landlords adapt and reposition assets for long-term stability. Limited new supply and prudent development activity are helping preserve rent levels and investor confidence, while redevelopment of older assets adds further value.
In this environment, Simon Property Group (SPG - Free Report) , the retail REIT behemoth, is well-poised to ride on this growth curve, backed by its portfolio of premium retail assets in the United States and abroad, solid operating fundamentals and strategic moves.
Shares of this retail REIT, carrying a Zacks Rank #2 (Buy), have gained 17.3% against the industry’s decline of 1.9% in the past six months. Analysts seem bullish on this stock, with the Zacks Consensus Estimate for its 2025 FFO per share being revised six cents upward to $12.64 over the past month.
Image Source: Zacks Investment Research
Let's Explore What Makes SPG Stock a Solid Choice
Premium Asset Base: Simon Property Group benefits from broad exposure to U.S. retail assets, while its international operations support more durable long-term growth than domestically focused peers. Its ownership stake in Klépierre strengthens its global reach, providing access to high-quality retail assets in Europe’s high-barrier markets. Geographic and product diversification underpin long-term growth prospects. Additionally, SPG’s omnichannel strategy and partnerships with premium retailers have been effective, including initiatives that help digital-native brands expand their physical retail presence.
Improving Leasing Environment: During the first nine months of 2025, it signed 819 new leases and 1,383 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. This comprised roughly 8.3 million square feet, of which 6.4 million square feet were related to consolidated properties.
Given the favorable retail real estate environment, this leasing momentum is expected to continue in the upcoming quarters. As of Sept. 30, 2025, the ending occupancy for the U.S. Malls and Premium Outlets portfolio was 96.4%, up 20 basis points from 96.2% as of Sept. 30, 2024. We expect the company’s 2025 total revenues to increase 3.9% on a year-over-year basis. We project the 2025 year-end occupancy for the U.S. Malls and Premium Outlets portfolio to be 96.1%.
Acquisitions, Development and Redevelopment: Simon Property continues reshaping its portfolio through premium acquisitions and large-scale redevelopments, investing billions to enhance property value and boost foot traffic across its assets.
In November 2025, Simon Property Group acquired Phillips Place, an open-air retail center spanning nearly 134,000 square feet of space, in the heart of the SouthPark neighborhood of Charlotte, NC. In October 2025, Simon Property acquired the remainder 12% interest in the Taubman Realty Group. The high-quality asset buyout will be value accretive, yielding growth for the company.
Simon Property is advancing redevelopment and expansion projects, adding anchors, big-box tenants, and restaurants across North America and abroad, with an encouraging emphasis on mixed-use asset development.
Balance Sheet: Simon Property has taken steps to strengthen financial flexibility, ending the third quarter of 2025 with $9.5 billion in liquidity. As of Sept. 30, 2025, secured debt represented just 16% of total assets, while the fixed-charge coverage ratio stood at a healthy 4.7, exceeding requirements. The company holds strong investment-grade ratings, A with a stable outlook from S&P and A3 stable from Moody’s, supporting resilience and growth capacity.
Dividend: Attractive dividends remain a key draw for REIT investors, and Simon Property continues to prioritize shareholder returns. Alongside its third-quarter 2025 earnings, the company raised its quarterly dividend to $2.20 per share from $2.15, reflecting a 2.3% increase. Simon Property has delivered 14 dividend hikes over the past five years, with payouts rising nearly 11.7% in that period. Supported by a strong operating platform, growth prospects and solid financial standing, the dividend appears sustainable in the long term.
Other Stocks to Consider
Some other top-ranked stocks from the retail REIT sector are Tanger Inc. (SKT - Free Report) and Phillips Edison & Company, Inc. (PECO - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Tanger’s 2025 FFO per share has been raised marginally over the past two months to $2.28.
The consensus estimate for Phillips Edison & Company’s 2025 FFO per share has been revised upward marginally to $2.58 over the past two months.
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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5 Reasons to Add Simon Property Stock to Your Portfolio
Key Takeaways
The retail real estate market is showing renewed resilience as landlords adapt and reposition assets for long-term stability. Limited new supply and prudent development activity are helping preserve rent levels and investor confidence, while redevelopment of older assets adds further value.
In this environment, Simon Property Group (SPG - Free Report) , the retail REIT behemoth, is well-poised to ride on this growth curve, backed by its portfolio of premium retail assets in the United States and abroad, solid operating fundamentals and strategic moves.
Shares of this retail REIT, carrying a Zacks Rank #2 (Buy), have gained 17.3% against the industry’s decline of 1.9% in the past six months. Analysts seem bullish on this stock, with the Zacks Consensus Estimate for its 2025 FFO per share being revised six cents upward to $12.64 over the past month.
Image Source: Zacks Investment Research
Let's Explore What Makes SPG Stock a Solid Choice
Premium Asset Base: Simon Property Group benefits from broad exposure to U.S. retail assets, while its international operations support more durable long-term growth than domestically focused peers. Its ownership stake in Klépierre strengthens its global reach, providing access to high-quality retail assets in Europe’s high-barrier markets. Geographic and product diversification underpin long-term growth prospects. Additionally, SPG’s omnichannel strategy and partnerships with premium retailers have been effective, including initiatives that help digital-native brands expand their physical retail presence.
Improving Leasing Environment: During the first nine months of 2025, it signed 819 new leases and 1,383 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. This comprised roughly 8.3 million square feet, of which 6.4 million square feet were related to consolidated properties.
Given the favorable retail real estate environment, this leasing momentum is expected to continue in the upcoming quarters. As of Sept. 30, 2025, the ending occupancy for the U.S. Malls and Premium Outlets portfolio was 96.4%, up 20 basis points from 96.2% as of Sept. 30, 2024. We expect the company’s 2025 total revenues to increase 3.9% on a year-over-year basis. We project the 2025 year-end occupancy for the U.S. Malls and Premium Outlets portfolio to be 96.1%.
Acquisitions, Development and Redevelopment: Simon Property continues reshaping its portfolio through premium acquisitions and large-scale redevelopments, investing billions to enhance property value and boost foot traffic across its assets.
In November 2025, Simon Property Group acquired Phillips Place, an open-air retail center spanning nearly 134,000 square feet of space, in the heart of the SouthPark neighborhood of Charlotte, NC. In October 2025, Simon Property acquired the remainder 12% interest in the Taubman Realty Group. The high-quality asset buyout will be value accretive, yielding growth for the company.
Simon Property is advancing redevelopment and expansion projects, adding anchors, big-box tenants, and restaurants across North America and abroad, with an encouraging emphasis on mixed-use asset development.
Balance Sheet: Simon Property has taken steps to strengthen financial flexibility, ending the third quarter of 2025 with $9.5 billion in liquidity. As of Sept. 30, 2025, secured debt represented just 16% of total assets, while the fixed-charge coverage ratio stood at a healthy 4.7, exceeding requirements. The company holds strong investment-grade ratings, A with a stable outlook from S&P and A3 stable from Moody’s, supporting resilience and growth capacity.
Dividend: Attractive dividends remain a key draw for REIT investors, and Simon Property continues to prioritize shareholder returns. Alongside its third-quarter 2025 earnings, the company raised its quarterly dividend to $2.20 per share from $2.15, reflecting a 2.3% increase. Simon Property has delivered 14 dividend hikes over the past five years, with payouts rising nearly 11.7% in that period. Supported by a strong operating platform, growth prospects and solid financial standing, the dividend appears sustainable in the long term.
Other Stocks to Consider
Some other top-ranked stocks from the retail REIT sector are Tanger Inc. (SKT - Free Report) and Phillips Edison & Company, Inc. (PECO - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Tanger’s 2025 FFO per share has been raised marginally over the past two months to $2.28.
The consensus estimate for Phillips Edison & Company’s 2025 FFO per share has been revised upward marginally to $2.58 over the past two months.
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.