Simon Property Group, Inc. (SPG), established in 1993 and headquartered in Indianapolis, Indiana, is a premier real estate investment trust specializing in retail property ownership, management, and development. With a market cap of $57.6 billion, Simon operates an extensive portfolio of shopping malls and outlet centers, providing dynamic retail and lifestyle experiences across the United States and beyond.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” Simon Property Group is firmly positioned within this category. This classification underscores its substantial scale, expansive portfolio, and leadership in the retail real estate sector. The company’s dedication to innovation, tenant relationships, and enhancing shopping experiences reinforces its role as a cornerstone of the retail property industry.
Shares of the REIT are trading 5% below their 52-week high of $186, which they hit on Nov. 29. The stock has gained 8.1% over the past three months, significantly outperforming the iShares U.S. Real Estate ETF (IYR), which has declined 3.6% over the same time frame.
Over the longer term, SPG has gained 23.8% on a YTD basis, surpassing IYR's 7.4% increase. SPG continued to outperform over the past 52 weeks, recording a 31.1% rise compared to IYR's 13.6% growth.
SPG has consistently traded above its 50-day moving average since June with a few fluctuations and has maintained its position above the 200-day moving average since last year, which signals a bullish trend.
Simon Property Group announced its fiscal Q3 earnings on Nov. 1, and its shares rose 2.7% following the results. Revenue increased 4.9% year-over-year to $1.48 billion, surpassing analyst expectations. Real Estate FFO grew 4.8% annually to $1.14 billion, or $3.05 per diluted share.
Looking ahead, the company forecasts its 2024 net income to be between $7.18 and $7.28 per and anticipates FFO in the range of $12.80 to $12.90 per share.
Simon Property Group underperformed its rival, Vornado Realty Trust (VNO), which has gained only 64.2% over the past 52 weeks and experienced 58.3% returns on a YTD basis.
Analysts hold a moderately optimistic outlook for SPG, given its recent outperformance relative to the broader sector. The stock has a consensus "Moderate Buy" rating from 17 analysts, with a mean price target of $182.32, indicating a potential upside of 3.2% from its current price.
