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Simon Property Group Inc SPG

Morningstar Rating
$150.35 −1.16 (0.77%)
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Company Report

Simon Property Group Earnings: Company Beats Estimates on Higher NOI Growth and Gains on Sale

Simon Property Group’s fourth-quarter results beat our estimates, giving us confidence in our $151 fair value estimate for the no-moat company. Occupancy sequentially increased 60 basis points to 95.8%, slightly better than our estimate of a 40-basis-point sequential gain. Minimum rents increased 3.1% year over year, also slightly better than our estimate of 2.0% growth. Simon reported same-store net operating income growth of 7.3% for the fourth quarter, which beat our estimate of 3.1% growth. The company reported funds from operations, or FFO, of $3.69 per share in the quarter, well above our estimate of $3.29. However, Simon reported a $117.4 million gain on the sale of a partial ownership interest in the Authentic Brands Group investment, resulting in a one-time gain of $0.31 per share. Excluding that one-time gain, Simon would have reported $3.38 per share, which is still slightly better than our estimate.

Price vs Fair Value

SPG is trading at a 0% discount.
Price
$150.35
Fair Value
$832.00
Uncertainty
Medium
1-Star Price
$752.22
5-Star Price
$333.10
Economic Moat
Brn
Capital Allocation
Dydbkrptnt

Bulls Say, Bears Say

Bulls

Simon's access to capital, scale, and validated record position the firm to execute on any attractive and available investment opportunities.

Bears

If consumers forced to purchase goods online during the coronavirus crisis permanently change their behavior to favor e-commerce and avoid public places, long-term sales growth could suffer.

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News

Trading Information

Previous Close Price
$151.51
Day Range
$150.34151.75
52-Week Range
$100.17153.11
Bid/Ask
$149.68 / $150.94
Market Cap
$49.00 Bil
Volume/Avg
854,970 / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
24.89
Price/Sales
8.25
Dividend Yield (Trailing)
4.96%
Dividend Yield (Forward)
5.19%
Total Yield
5.25%

Company Profile

Simon Property Group is the second-largest real estate investment trust in the United States. Its portfolio includes an interest in 231 properties: 136 traditional malls, 70 premium outlets, 14 Mills centers (a combination of a traditional mall, outlet center, and big-box retailers), 6 lifestyle centers, and 5 other retail properties. Simon's portfolio averaged $693 in sales per square foot over the 12 months prior to the pandemic. 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 33 premium outlets across 11 countries.
Sector
Real Estate
Industry
REIT - Retail
Stock Style Box
Mid Core
Total Number of Employees
3,000

Competitors

Valuation

Metric
SPG
FRT
MAC
Price/Earnings (Normalized)
24.8938.28
Price/Book Value
15.622.981.48
Price/Sales
8.257.254.26
Price/Cash Flow
13.0914.8313.13
Price/Earnings
SPG
FRT
MAC

Financial Strength

Metric
SPG
FRT
MAC
Quick Ratio
1.041.550.47
Current Ratio
1.041.550.63
Interest Coverage
4.162.45−0.65
Quick Ratio
SPG
FRT
MAC

Profitability

Metric
SPG
FRT
MAC
Return on Assets (Normalized)
6.78%3.11%−0.48%
Return on Equity (Normalized)
76.35%9.35%−1.40%
Return on Invested Capital (Normalized)
10.48%4.99%2.33%
Return on Assets
SPG
FRT
MAC
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REIT - Retail Industry Comparables

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Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
O
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KIM
Kimco Realty CorpGjs$13.1 Bil
LKREF
Link Real Estate Investment TrustNkyht$12.6 Bil
REG
Regency Centers CorpJdc$11.2 Bil
STGPF
Scentre GroupBsc$10.5 Bil
UNBLF
Unibail-Rodamco-Westfield Act. SIIC ET STES FONC.EUROP.Sqjl$10.3 Bil
CPAMF
CapitaLand Integrated Commercial TrustXhrclbx$9.7 Bil
FRT
Federal Realty Investment TrustJnyf$8.2 Bil
MAC
Macerich CoRbcj$3.6 Bil

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