Key Reasons to Add Simon Property Stock to Your Portfolio Now

Simon Property’s SPG portfolio of premium retail assets in the United States and abroad, efforts to support omnichannel retailing and solid balance sheet strength will help it tap growth in an improving environment. Also, accretive buyouts and redevelopment efforts augur well for long-term growth.

Analysts seem positive about this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for SPG’s 2025 funds from operations (FFO) per share has moved marginally northward over the past week to $12.68. The consensus estimate for 2026 FFO per share has also moved upward marginally to $13.02 over the past week.

Given its solid fundamentals and positive estimate revisions, the stock is likely to keep performing well in the quarters ahead.

Factors That Make Simon Property Stock a Solid Pick

Global Retail Edge: Simon Property enjoys a wide exposure to retail assets across the United States. Moreover, the company’s international presence fosters sustainable long-term growth compared to its domestically focused peers. The company’s ownership stake in Klépierre facilitates the expansion of its global footprint, which gives it access to premium retail assets in Europe's high-barrier-to-entry markets. In an improving leasing environment, the retail REIT is poised to benefit from its superior assets at premium locations.

Omnichannel Strategy: Simon Property’s adoption of an omnichannel strategy and successful tie-ups with premium retailers have paid off well in recent years. Particularly, the company’s online retail platform, woven with an omnichannel strategy, augurs well for its long-term growth. Simon is also focused on tapping its growth opportunities by assisting digital brands in enhancing their brick-and-mortar presence. This will eventually augur higher revenue generation for several such brands and drive demand for Simon’s properties.

Strategic Expansion Efforts: Simon Property has been restructuring its portfolio, aiming at premium acquisitions and transformative redevelopments. For the past several years, the company has been investing billions to transform its properties, focused on creating value and driving footfall at the properties. Moreover, Simon Property has redevelopment and expansion projects, including the addition of anchors, big box tenants and restaurants, ongoing at properties in North America, Europe and Asia.

Balance Sheet Strength: Simon Property is making efforts to bolster its financial flexibility. This enabled the company to exit the third quarter of 2025 with $9.5 billion of liquidity. As of Sept. 30, 2025, Simon Property’s total secured debt to total assets was 16%, while the fixed-charge coverage ratio was 4.7, ahead of the required level. Moreover, the company enjoys a corporate investment-grade credit rating of A (stable outlook) from Standard and Poor's and a senior unsecured rating of A3 (stable outlook) from Moody’s. With solid balance sheet strength and available capital resources, it remains well-poised to tide over any mayhem and bank on growth opportunities.

Solid Dividend Payment: Solid dividend payouts are the biggest enticement for REIT investors, and Simon Property is committed to boosting shareholder wealth. This retail REIT has increased its dividend 14 times in the last five years. Given the company’s solid operating platform, opportunities for growth and decent financial position compared with the industry, this dividend rate is expected to be sustainable over the long run. Check Simon Properties’ dividend history here.

Key Risks for REG

Growing e-commerce adoption and high debt burden raise concerns for Simon Property. Macroeconomic uncertainty can result in strain on retailers' balance sheets, leading to tenant bankruptcies.

Over the past three months, shares of this retail real estate investment trust (REIT) company have rallied 4.8% compared with the industry's rise of 0.3%.

Other Stocks to Consider

Some other top-ranked stocks from the retail REIT sector are Regency Centers REG and Phillips Edison & Company, Inc. PECO, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Regency Centers’ 2025 FFO per share has been raised marginally over the past week to $4.63. The estimate for 2026 FFO per share has also moved northward to $4.81 over the same period.

The consensus estimate for Phillips Edison & Company’s 2025 FFO per share has been revised upward marginally to $2.60 over the past week. The estimate for 2026 FFO per share has also moved northward to $2.74 over the same period.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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

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