Simon Property Stock: Is SPG Outperforming the Real Estate Sector?

Indianapolis, Indiana-based Simon Property Group, Inc. (SPG) is a self-administered and self-managed real estate investment trust (REIT). Valued at $60.8 billion by market cap, the company owns, develops, and manages retail real estate properties, including regional malls, outlet centers, community/lifestyle centers, and international properties.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and SPG perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the REIT - retail industry. SPG boasts a robust portfolio of 230 properties, with strategic investments, like its Klepierre stake and international joint ventures, positioning it for global growth and diversified revenue streams.

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Despite its notable strength, SPG slipped 2.6% from its 52-week high of $190.14, achieved on Mar. 3. Over the past three months, SPG stock gained 2.5%, outperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 2.9% losses during the same time frame.

In the longer term, shares of SPG rose 7.5% on a YTD basis and climbed marginally over the past 52 weeks, outperforming XLRE’s YTD gain of 1% and 8.7% decline over the last year.

To confirm the bullish trend, SPG has been trading above its 50-day moving average since early May, experiencing some fluctuations. The stock has been trading above its 200-day moving average since mid-August.

On Nov. 3, SPG shares closed up marginally after reporting its Q3 results. Its FFO per share of $3.22 surpassed Wall Street expectations of $3.09. The company’s revenue was $1.6 billion, beating Wall Street's $1.5 billion forecast. SPG expects full-year FFO to be $12.60 to $12.70 per share.

SPG’s rival, Regency Centers Corporation (REG) shares lagged behind the stock, with a 4.2% downtick on a YTD basis and 6.3% losses over the past 52 weeks.

Wall Street analysts are reasonably bullish on SPG’s prospects. The stock has a consensus “Moderate Buy” rating from the 21 analysts covering it, and the mean price target of $193.50 suggests a potential upside of 4.5% from current price levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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