Will Simon Property's Expansion Push Unlock the Next Phase of Growth?

Simon Property Group’s SPG multi-billion-dollar investments aimed at premium acquisitions and transformative redevelopments are instrumental in driving cash flow and the future growth story. The retail REIT’s strategic move helps create value and drive footfall at the properties.

In June 2025, Simon Property purchased Swire Properties’ stake in Brickell City Centre’s open-air shopping center, and now owns and manages the asset. With more than 90 retail stores, including Apple, Zara and Coach, and more than 15 premium dining and entertainment locations, the center will act as a major footfall driver for the company.

In April 2025, Simon Property acquired its joint venture partner’s remaining interest in Briarwood Mall, consolidating the same in its portfolio. In January 2025, Simon Property announced that it had taken over 100% of The Mall Luxury Outlets entities from Kering. Established in 2001, The Mall operates two luxury outlets: one in Leccio, near Florence, Italy, and the other in Sanremo on the Italian Riviera.

Moreover, Simon Property actively indulges in redevelopment and expansion projects in markets with a favorable risk-reward ratio. The company has such projects, including the addition of anchors, big box tenants and restaurants, ongoing at properties in North America, Europe and Asia. As of June 30, 2025, the company’s share of net investment in redevelopments amounted to around $1 billion.

In addition, Simon Property is making efforts to bolster its financial flexibility. With solid balance-sheet strength and available capital resources, it remains well-poised to capitalize on growth opportunities.

How Are Other Retail REITs Capitalizing on Growth Opportunities?

Kimco Realty KIM is driving growth through redevelopments, selective acquisitions and asset recycling. For 2025, Kimco plans $100-$125 million in net acquisitions, funded partly by $100-$150 million in dispositions of low-growth assets, with redevelopment yields up to 17% and Kimco’s structured investments yielding 9-10%.

Federal Realty FRT is enhancing its operational performance through disciplined expansion in supply-constrained premium markets with an affluent population. The company is also disposing of non-core assets, which provides the dry powder to carry out value-accretive acquisitions. From the year 2019 through the second quarter of 2025, the company’s gross investment in acquisitions amounted to $2.1 billion, and gross proceeds from dispositions totaled $1.1 billion.

SPG’s Price Performance, Valuation and Estimates

Shares of Simon Property have risen 12.2% over the past three months compared with the industry’s growth of 4.1%.

From a valuation standpoint, SPG trades at a forward 12-month price-to-FFO of 14.53, below the industry. It carries a Value Score of D.

The Zacks Consensus Estimate for SPG’s 2025 funds from operations per share has been revised marginally upward over the past 90 days.

At present, Simon Property carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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