Analyst Report: Simon Property Group, Inc.

Summary

Simon Property Group Inc., based in Indianapolis, is a retail REIT that is one of the largest owners of high-end malls, outlet centers, and lifestyle destinations in North America, Asia, and Europe. The company has expanded its profile by investing in the retail operations of several well-known retail brands, including JC Penny (with partner Brookfield) and Authentic Brands Group (with partner SPARC). ABG brands include Aeropostale, Reebok, Nautica, Izod, and Forever 21. SPG has a 33% interest in SPARC. Additionally, the company has an 84% interest in the Taubman Group and a 22% interest in Klepierre, a Paris-based real estate firm. SPG also operates Simon Brand Ventures, which offers appraisals and real estate services.

Simon owns or has interests in about 250 properties with 195 million square feet of leasable space. This includes 35 international properties. Joint Ventures accounted for about 60% of 2023 revenues. U.S. malls and outlets account for approximately 72% of NOI and international assets account for about 9%. Properties in California, Florida, and Texas account for about 43% of U.S. NOI. Recent development activity includes the construction of a lifestyle center in Atlanta and premium outlets in Tokyo, Jakarta, and South Korea.

The REIT has a varied tenant base. Its top tenants are Gap Inc., Tapestry, and Signet Jewelers, although their leases account for about 6% of total base minimum rent. SPG is a member of the S&P 500 and has a market cap of $47 billion.

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