Simon Property Group Inc (SPG) Quote - XNYS | Morningstar

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Taubman Acquisition and Retail Investments Help Simon Produce Strong Q2 Cash Flows

Equity Analyst Kevin Brown

Kevin Brown Equity Analyst

Analyst Note

| Kevin Brown | Aug 3, 2021

No-moat Simon Property Group beat our expectations for the second quarter, leading us to reaffirm our $149 fair value estimate. Occupancy started to recover in the June quarter, increasing 90 basis points sequentially to 91.8%, well ahead of our estimate for occupancy to fall to 89.5%. However, re-leasing spreads came in worse than we anticipated with a 21.8% decline in new lease terms compared with our estimate of a 10.1% decline, which led to average base rents falling 1.1%.

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Company Profile

Business Description

Simon Property Group is the second- largest real estate investment trust in the United States. Its portfolio includes an interest in 207 properties: 106 traditional malls, 69 premium outlets, 14 Mills centers (a combination of a traditional mall, outlet center, and big-box retailers), four lifestyle centers, and 14 other retail properties. Simon's portfolio averaged $693 in sales per square foot over the past 12 months. The company also owns a 21% interest in Klepierre, a European retail company with investments in shopping centers in 16 countries, and joint venture interests in 29 premium outlets across 11 countries.

Contact

225 West Washington Street
Indianapolis, IN, 46204

T +1 317 636-1600

IRContact@simon.com

Sector Real Estate

Industry REIT - Retail

Most Recent Earnings Jun 30, 2021

Fiscal Year End Dec 31, 2021

Stock Type Hard Assets

Employees 3,300

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