Two of the most widely followed U.S. retail REITs, Realty Income (O Quick QuoteO - Free Report) and Simon Property Group (SPG Quick QuoteSPG - Free Report) , approach real estate investing from very different angles. Realty Income has built its reputation around single-tenant net lease properties and a reliable monthly dividend, while Simon Property focuses on large, high-productivity malls and premium outlets. Both companies generate billions in rental income and have long histories of returning capital to shareholders, but the way they grow and manage risk differs significantly.

Realty Income emphasizes stability through long lease structures and necessity-driven tenants. Simon, on the other hand, relies on premium retail destinations that benefit from strong consumer spending and tenant demand. Recent financial results show that both companies remain profitable and operationally strong, yet their balance sheet strategies, growth pipelines and capital allocation plans highlight different long-term opportunities.

For investors comparing these two REIT leaders, the decision often comes down to growth potential versus income stability. Examining recent operating data, capital investments and strategic initiatives helps clarify how each company positions itself in today’s retail real estate environment.

The Case for Realty Income

One of Realty Income’s strongest advantages is the predictability of its rental income. The company owns more than 15,000 properties leased to tenants across retail, industrial and other sectors under long-term net leases. These leases typically pass property expenses to tenants, which helps stabilize margins even during economic fluctuations. 

Dividend reliability is another key strength. Realty Income increased its monthly dividend again in early 2026, marking its 134th common stock dividend increase since listing. The company has long marketed itself as “The Monthly Dividend Company,” and that reputation remains supported by steady AFFO generation and a diversified tenant base. For income-focused investors, this predictable distribution pattern stands out compared with many retail-focused REITs.

Another strength is Realty Income’s consistent investment activity. In 2025, the company invested approximately $6.3 billion in property acquisitions and development opportunities across North America and Europe, adding scale while maintaining high portfolio occupancy above 98%. This international expansion and property diversification provide additional avenues for long-term growth beyond traditional U.S. retail locations.

However, Realty Income’s growth profile is tied closely to capital availability. Because the company primarily expands through property acquisitions, its ability to grow depends on raising capital through equity and debt markets. This acquisition-driven strategy can limit growth during periods when capital costs rise.

Another challenge is that the company’s assets are largely single-tenant properties with fixed rental escalators. While this structure provides stability, it typically results in slower organic growth compared with retail landlords that can re-lease space at significantly higher rents. As a result, Realty Income often delivers steady but moderate earnings growth relative to higher-productivity retail platforms.

The Case for Simon Property

Simon Property’s biggest strength is the scale and productivity of its premium retail properties. The company reported strong results for 2025, including real estate funds from operations of $4.8 billion, or $12.73 per share, reflecting the earnings power of its high-quality mall and outlet portfolio. These assets continue to attract major retailers and maintain strong leasing demand.

Another advantage is the company’s focus on redevelopment and modernization. Simon recently announced a major transformation project at Copley Place in Boston, aimed at enhancing its position as a luxury retail and dining destination. Such redevelopment initiatives allow Simon Property to improve tenant mix, increase foot traffic and generate higher long-term income from existing assets.

Capital allocation is also an important strength. The company authorized a $2.0 billion common stock repurchase program, demonstrating confidence in its cash flow and balance sheet. In addition, Simon Property amended and extended its $5.0 billion revolving credit facility, providing additional liquidity and financial flexibility to support investments and redevelopment projects.

Simon Property’s operating momentum is also reflected in strong leasing activity. The company executed more than 17 million square feet of leases in 2025, highlighting ongoing retailer demand for its properties. This level of leasing activity underscores the continued relevance of high-quality malls and outlets despite broader changes in the retail industry.

The main risk for SPG is its exposure to traditional mall retail. Consumer spending cycles and changes in shopping behavior can affect tenant demand more directly than in Realty Income’s diversified net-lease portfolio. While Simon’s high-quality assets mitigate some of this risk, the business remains more sensitive to retail industry trends.

How Do Estimates Compare for O & SPG?

The Zacks Consensus Estimate for Realty Income’s 2026 and 2027 sales implies year-over-year growth of 7.50% and 6.91%, respectively. The consensus mark for 2026 and 2027 funds from operations (FFO) per share suggests year-over-year growth of 3.97% and 2.89%, respectively. Over the past month, estimates for O’s 2026 and 2027 FFO per share have been tweaked northward marginally to $4.45 and $4.58, respectively.

For Realty Income:

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Simon Property’s 2026 and 2027 sales indicates year-over-year growth of 1.79% and 3.19%, respectively. The consensus mark for 2026 and 2027 FFO per share has been revised 2 cents and 9 cents upward over the past month to $13.10 and $13.51, respectively. The figure suggests a year-over-year increase of 2.91% and 3.11%, respectively.

For Simon Property:

Image Source: Zacks Investment Research

Price Performance and Valuation of O & SPG

So far this year, Realty Income shares have risen 14.3%, while Simon Property stock has gained only 0.9%. In comparison, the Zacks REIT and Equity Trust - Retail industry has rallied 12.7%, while the S&P 500 composite has declined 3.3% in the same time frame. 

Image Source: Zacks Investment Research

O is trading at a forward 12-month price-to-FFO, which is a commonly used multiple for valuing REITs, of 14.41X, which is above its three-year median of 13.24X. 

SPG is presently trading at a forward 12-month price-to-FFO of 14.17X, which is also above its three-year median of 12.53X. Both O and SPG carry a Value Score of D.

Image Source: Zacks Investment Research

Conclusion: SPG Has the Edge

Realty Income and Simon Property represent two different approaches to retail real estate investing. O focuses on stability, supported by a vast portfolio of single-tenant properties, high occupancy and a long track record of dividend growth. Its strategy provides predictable income and steady expansion through acquisitions and investments.

Simon Property, however, offers stronger growth drivers. Its premium malls and outlets generate significant cash flow, and redevelopment projects allow the company to unlock additional value from existing assets. Strong leasing activity, major property upgrades and capital return initiatives further strengthen its outlook.

While Realty Income remains an attractive income-oriented REIT, Simon Property’s combination of operating strength, redevelopment opportunities and capital allocation initiatives makes it the better stock for investors to consider today.

While SPG carries a Zacks Rank #2 (Buy), O has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.