Simon Property Group's Rating Upgraded to A
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy SPG?
Source: Benzinga
- Stable Leverage: Simon Property Group's net debt to EBITDA ratio remains at 5.0x, unchanged since the rating upgrade, indicating stability in capital structure despite the improved rating, suggesting that leverage levels are not a concern at this time.
- Strong Occupancy Rates: As of December 31, 2025, Simon's malls and premium outlets reported a 96.4% occupancy rate, with malls at 99.2%, reflecting robust performance in the retail market and sustained consumer demand.
- Ongoing Acquisition Activity: In 2025, Simon deployed approximately $2 billion in acquisitions, including the remaining interest in Taubman, indicating a proactive growth strategy; however, high leverage may necessitate external funding to maintain capital structure stability.
- Rising Interest Expenses: The guidance for 2026 includes an increase in net interest expense of $0.25 to $0.30 per share, translating to approximately $95 million to $115 million in incremental financing costs, about 2% of FY2025 Real Estate FFO, which could impact capital allocation and shareholder returns.
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Analyst Views on SPG
Wall Street analysts forecast SPG stock price to fall
13 Analyst Rating
4 Buy
9 Hold
0 Sell
Moderate Buy
Current: 202.010
Low
181.00
Averages
193.69
High
225.00
Current: 202.010
Low
181.00
Averages
193.69
High
225.00
About SPG
Simon Property Group, Inc. is a self-administered and self-managed real estate investment trust. The Company owns, develops and manages premier shopping, dining, entertainment and mixed-use destinations, which consist primarily of malls, Premium Outlets, The Mills, and International Properties. It owns approximately 250 plus global properties. Its properties include Apple Blossom Mall, Auburn Mall, Barton Creek Square, Battlefield Mall, Bay Park Square, Brea Mall, Briarwood Mall, Brickell City Centre, Broadway Square, Burlington Mall, Cape Cod Mall, Castleton Square, Cielo Vista Mall, Coconut Point, College Mall, Columbia Center, Copley Place, Coral Square, Cordova Mall, Dadeland Mall, Del Amo Fashion Center, Empire Mall, Firewheel Town Center, Greenwood Park Mall, Haywood Mall, King of Prussia, La Plaza, Lakeline Mall, Lenox Square, Mall of Georgia, Meadowood Mall, Menlo Park Mall, Miami International Mall, North East Mall, Ocean County Mall, Pheasant Lane Mall, and Phillips Place.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Simon Property Group's Rating Upgraded to A
- Stable Leverage: Simon Property Group's net debt to EBITDA ratio remains at 5.0x, unchanged since the rating upgrade, indicating stability in capital structure despite the improved rating, suggesting that leverage levels are not a concern at this time.
- Strong Occupancy Rates: As of December 31, 2025, Simon's malls and premium outlets reported a 96.4% occupancy rate, with malls at 99.2%, reflecting robust performance in the retail market and sustained consumer demand.
- Ongoing Acquisition Activity: In 2025, Simon deployed approximately $2 billion in acquisitions, including the remaining interest in Taubman, indicating a proactive growth strategy; however, high leverage may necessitate external funding to maintain capital structure stability.
- Rising Interest Expenses: The guidance for 2026 includes an increase in net interest expense of $0.25 to $0.30 per share, translating to approximately $95 million to $115 million in incremental financing costs, about 2% of FY2025 Real Estate FFO, which could impact capital allocation and shareholder returns.
See More
Real Estate Stocks Show Promising Recovery Prospects
- Real Estate Performance: Since November, Ventas (VTR) has risen 14% and Welltower (WELL) 13%, both outperforming the S&P 500 and the real estate sector's gains of 2% and 8%, indicating signs of recovery in the industry.
- Realty Income Results: Realty Income reported $1.4 billion in investments for Q3 2025, raised its full-year income guidance to $4.25-$4.27 per share, and increased its investment guidance to $5.5 billion, with a portfolio occupancy rate of 98.7%, showcasing strong business growth potential.
- Iron Mountain Growth: Iron Mountain achieved a 17% year-over-year revenue growth in Q4 2025, with its data center business growing by 39%, and management expects a 12% revenue growth and 13% adjusted EBITDA growth in 2026, highlighting its competitive edge in the market.
- Prologis Development: Prologis signed 228 million square feet of leases in Q4 2025, with portfolio occupancy nearing 96%, and expects FFO per share of $6.00-$6.20 in 2026, reflecting strong momentum in the industrial real estate sector.
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Simon Unveils Transformational Redevelopment at Copley Place Luxury Retail Space
- Luxury Redevelopment Plan: Simon has announced a redevelopment of the Neiman Marcus space at Copley Place, expected to introduce internationally recognized luxury brands and dining, further solidifying its status as Boston's premier destination for luxury shopping and dining.
- New Dining Concepts: The new space will feature renowned restaurants such as Casa Tua Cucina and Estiatorio Milos, with the former offering Italian-inspired global cuisine and the latter known for its fresh seafood and Mediterranean ingredients, enhancing the dining experience for consumers.
- Market Position Enhancement: Mark Silvestri, President of Development at Simon, stated that Copley Place will elevate its uniqueness in the luxury market by introducing these global brands and iconic dining concepts, thereby attracting high-end consumers.
- Construction Timeline: The redevelopment is expected to commence later this year with phased openings, including retail, dining, and wellness concepts, aiming for full completion by 2028, marking a new chapter for Copley Place.
See More
Simon Transforms Copley Place Luxury Retail Space in Boston
- Luxury Redevelopment Plan: Simon has announced a redevelopment of the Neiman Marcus space at Copley Place, expected to introduce internationally recognized luxury brands and dining, further solidifying its status as Boston's premier destination for luxury shopping and dining.
- New Dining Concepts: The new space will feature globally renowned dining brands such as Casa Tua Cucina and Estiatorio Milos, with the former focusing on Italian cuisine and the latter offering fresh Greek seafood, enhancing the dining experience for consumers.
- Enhanced Market Competitiveness: This redevelopment will include luxury brands like Dolce & Gabbana, FENDI, and Tourneau, reinforcing Copley Place's position as a center for luxury and culinary excellence in Boston, likely attracting more high-end consumers.
- Construction Timeline: The redevelopment is expected to commence in 2026, with phased openings of new retail, dining, and wellness concepts, aiming for full completion by 2028, thereby enhancing the overall appeal and market value of the shopping center.
See More
Software Sector Earnings Reports May Trigger Bounce
- Market Bounce Opportunity: Investor Jay Woods highlights that three earnings reports from the software sector this week could trigger a bounce in the beaten-down market, particularly noting that results from Applovin, Datadog, and Unity Software may serve as positive catalysts.
- ETF Performance Decline: The iShares Expanded Tech-Software Sector ETF (IGV) has experienced a nearly 30% drop from its all-time high late last year, driven by fears of AI disruption, even as the broader bull market continues to thrive.
- Support Level Analysis: Woods indicates that the IGV has major support between $80 and $77, suggesting that a drop below this range would present a significant buying opportunity, reflecting ongoing market confidence in the ETF's long-term prospects.
- Other Earnings Focus: In addition to software companies, Cisco is set to report earnings on Wednesday, with Woods suggesting that a breakout above $85 could signal a new upward trend, attracting more traders to engage with the stock.
See More
Positive Outlook for U.S. Real Estate Market
- Market Leadership Expansion: Leadership in the U.S. equity market is broadening into non-tech sectors as of 2026, with cyclical industries like energy and materials performing strongly, indicating potential for market diversification and rotation into value-oriented sectors.
- Real Estate Sector Recovery: The real estate sector is showing improved momentum, particularly with data center REITs linked to the AI investment theme, which may attract more investor attention and drive overall industry recovery.
- Simon Property's Strong Performance: Simon Property Group was a top performer in the real estate sector last year, gaining approximately 7.5%, and its technical picture indicates a bullish long-term uptrend after breaking through the long-term resistance at $191, boosting market confidence.
- Equinix's Potential Reversal: Data center REITs like Equinix are showing signs of reversing their cyclical downtrends, and if it posts two consecutive weekly closes above the resistance level of $848, it would confirm a bullish long-term development, potentially pushing the stock toward the final resistance near $994.
See More
Simon Property Group's Rating Upgraded to A
- Stable Leverage: Simon Property Group's net debt to EBITDA ratio remains at 5.0x, unchanged since the rating upgrade, indicating stability in capital structure despite the improved rating, suggesting that leverage levels are not a concern at this time.
- Strong Occupancy Rates: As of December 31, 2025, Simon's malls and premium outlets reported a 96.4% occupancy rate, with malls at 99.2%, reflecting robust performance in the retail market and sustained consumer demand.
- Ongoing Acquisition Activity: In 2025, Simon deployed approximately $2 billion in acquisitions, including the remaining interest in Taubman, indicating a proactive growth strategy; however, high leverage may necessitate external funding to maintain capital structure stability.
- Rising Interest Expenses: The guidance for 2026 includes an increase in net interest expense of $0.25 to $0.30 per share, translating to approximately $95 million to $115 million in incremental financing costs, about 2% of FY2025 Real Estate FFO, which could impact capital allocation and shareholder returns.
See More
Real Estate Stocks Show Promising Recovery Prospects
- Real Estate Performance: Since November, Ventas (VTR) has risen 14% and Welltower (WELL) 13%, both outperforming the S&P 500 and the real estate sector's gains of 2% and 8%, indicating signs of recovery in the industry.
- Realty Income Results: Realty Income reported $1.4 billion in investments for Q3 2025, raised its full-year income guidance to $4.25-$4.27 per share, and increased its investment guidance to $5.5 billion, with a portfolio occupancy rate of 98.7%, showcasing strong business growth potential.
- Iron Mountain Growth: Iron Mountain achieved a 17% year-over-year revenue growth in Q4 2025, with its data center business growing by 39%, and management expects a 12% revenue growth and 13% adjusted EBITDA growth in 2026, highlighting its competitive edge in the market.
- Prologis Development: Prologis signed 228 million square feet of leases in Q4 2025, with portfolio occupancy nearing 96%, and expects FFO per share of $6.00-$6.20 in 2026, reflecting strong momentum in the industrial real estate sector.
See More
Simon Unveils Transformational Redevelopment at Copley Place Luxury Retail Space
- Luxury Redevelopment Plan: Simon has announced a redevelopment of the Neiman Marcus space at Copley Place, expected to introduce internationally recognized luxury brands and dining, further solidifying its status as Boston's premier destination for luxury shopping and dining.
- New Dining Concepts: The new space will feature renowned restaurants such as Casa Tua Cucina and Estiatorio Milos, with the former offering Italian-inspired global cuisine and the latter known for its fresh seafood and Mediterranean ingredients, enhancing the dining experience for consumers.
- Market Position Enhancement: Mark Silvestri, President of Development at Simon, stated that Copley Place will elevate its uniqueness in the luxury market by introducing these global brands and iconic dining concepts, thereby attracting high-end consumers.
- Construction Timeline: The redevelopment is expected to commence later this year with phased openings, including retail, dining, and wellness concepts, aiming for full completion by 2028, marking a new chapter for Copley Place.
See More
Simon Transforms Copley Place Luxury Retail Space in Boston
- Luxury Redevelopment Plan: Simon has announced a redevelopment of the Neiman Marcus space at Copley Place, expected to introduce internationally recognized luxury brands and dining, further solidifying its status as Boston's premier destination for luxury shopping and dining.
- New Dining Concepts: The new space will feature globally renowned dining brands such as Casa Tua Cucina and Estiatorio Milos, with the former focusing on Italian cuisine and the latter offering fresh Greek seafood, enhancing the dining experience for consumers.
- Enhanced Market Competitiveness: This redevelopment will include luxury brands like Dolce & Gabbana, FENDI, and Tourneau, reinforcing Copley Place's position as a center for luxury and culinary excellence in Boston, likely attracting more high-end consumers.
- Construction Timeline: The redevelopment is expected to commence in 2026, with phased openings of new retail, dining, and wellness concepts, aiming for full completion by 2028, thereby enhancing the overall appeal and market value of the shopping center.
See More
Software Sector Earnings Reports May Trigger Bounce
- Market Bounce Opportunity: Investor Jay Woods highlights that three earnings reports from the software sector this week could trigger a bounce in the beaten-down market, particularly noting that results from Applovin, Datadog, and Unity Software may serve as positive catalysts.
- ETF Performance Decline: The iShares Expanded Tech-Software Sector ETF (IGV) has experienced a nearly 30% drop from its all-time high late last year, driven by fears of AI disruption, even as the broader bull market continues to thrive.
- Support Level Analysis: Woods indicates that the IGV has major support between $80 and $77, suggesting that a drop below this range would present a significant buying opportunity, reflecting ongoing market confidence in the ETF's long-term prospects.
- Other Earnings Focus: In addition to software companies, Cisco is set to report earnings on Wednesday, with Woods suggesting that a breakout above $85 could signal a new upward trend, attracting more traders to engage with the stock.
See More
Positive Outlook for U.S. Real Estate Market
- Market Leadership Expansion: Leadership in the U.S. equity market is broadening into non-tech sectors as of 2026, with cyclical industries like energy and materials performing strongly, indicating potential for market diversification and rotation into value-oriented sectors.
- Real Estate Sector Recovery: The real estate sector is showing improved momentum, particularly with data center REITs linked to the AI investment theme, which may attract more investor attention and drive overall industry recovery.
- Simon Property's Strong Performance: Simon Property Group was a top performer in the real estate sector last year, gaining approximately 7.5%, and its technical picture indicates a bullish long-term uptrend after breaking through the long-term resistance at $191, boosting market confidence.
- Equinix's Potential Reversal: Data center REITs like Equinix are showing signs of reversing their cyclical downtrends, and if it posts two consecutive weekly closes above the resistance level of $848, it would confirm a bullish long-term development, potentially pushing the stock toward the final resistance near $994.
See More
