Simon Property Group, Inc. (SPG), headquartered in Indianapolis, Indiana, is a real estate investment trust (REIT) engaged in the ownership of premier shopping, dining, entertainment, and mixed-use destinations. Valued at $47.67 billion by market cap, the company specializes in owning, developing, managing, leasing, acquiring, and expanding income-producing retail real estate assets. It has properties spanning across North America, Europe, and Asia.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and SPG perfectly fits that description, signifying its substantial size, stability, and dominance in its industry.
The REIT has fallen 7.3% from its 52-week high of $157.82, which it hit on Mar. 21. Shares of SPG are down 5.9% over the past three months, underperforming the Dow Jones Industrials Average’s ($DOWI) marginal losses over the same time frame.
Longer term, SPG shares rose 32.1% over the past year, and in 2024, the stock is up 2.5%. By contrast, DOWI is up 3.8% on a YTD basis and 14.9% over the past 52 weeks.
The stock has been trading below its 50-day moving average since mid-June but above its 200-day moving average since early November 2023.
On May 6, SPG reported its Q1 results. The REIT’s funds from operations were $1.33 billion, or $3.56 per share, beating the consensus estimate of $2.80 per share. Its revenue stood at $1.44 billion, higher than Wall Street estimates of $1.41 billion. SPG forecasted its full-year funds from operations to be between $12.75 and $12.90 per share. The stock closed up more than 1% on the day the results were released.
Rival Kimco Realty Corporation (KIM) has underperformed SPG. KIM stock has declined 1.8% in the past 52 weeks and 11.4% on a YTD basis.
Despite its recent underperformance compared to DOWI, analysts are optimistic about SPG’s prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it, and the mean price target of $158.47 is a premium of 8.4% to current levels.
On the date of publication, Dipanjan Banchur 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.
