Orin
SPGNYSE·REIT - Retail

Simon Property Group, Inc. SPG

Market cap $66.3BP/E 14.4× trailingGross margin 84.6%Reports Mon 2 Nov, after the close
$204.16
−1.79 (−0.87%)Wed close 16:00 ET
52-wk $172.19 – $238.50
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Orin's take
0.58conviction · moderate
Refreshed 27 Aug · take v7. A new filing or a print queues the next refresh.

Simon Property Group's operating fundamentals remain strong — 2025 revenue grew 6.7% to $6.36B with an 85.7% gross margin and $3.57B in free cash flow, and Q2 2026 FFO beat estimates with raised full-year guidance and 96% occupancy — but the headline 15.4x P/E is flattered by a 94.8% net income surge to $4.61B that vastly outpaces operating income growth of just 2.7%, indicating non-operating gains distort the multiple. The stock trades at a 13% EV/EBITDA discount to peers (13.1x vs 15.0x median) yet a 29% P/S premium (10.1x vs 7.9x), total debt rose $4.4B to $29.2B in 2025, and technicals are weak with the price below its 50-day MA at $217.11 and bearish MACD momentum.

A cluster buy by 11 insiders on 2026-06-30 and improving smart money conviction (score rising to 0.0623 as of Q2 2026) are incremental positives, but the mixed valuation and stretching balance sheet keep risk/reward balanced.

What could go wrong

  • Non-operating income distortion. 2025 net income of $4.61B grew 94.8% while operating income rose only 2.7% to $3.18B, meaning the 15.4x P/E understates the true operating multiple and could reverse if one-time gains don't recur.
  • Leverage expansion. Total debt increased $4.4B to $29.2B in 2025 against stockholders' equity of just $5.2B, raising balance-sheet risk if rates rise or property values decline.
  • Technical deterioration. As of 2026-08-26, SPG trades at $217.11 below its 50-day MA of $223.18 with a negative MACD histogram of -0.64 and RSI at 40.75, suggesting near-term downside momentum.
  • P/S premium compression. At 10.1x P/S versus a peer median of 7.9x, SPG carries a 29% premium that could compress if retail REIT sentiment cools or leasing growth disappoints.

What would change my mind

Q3 2026 occupancy and leasing update. Occupancy holds above 95% and releasing spreads remain positive with continued retailer sales growthbullish
Debt reduction or refinancing. Total debt declines from the $29.2B level or management announces deleveraging initiatives reducing net debt/EBITDA meaningfully below 5.0xbullish
Operating income deceleration. Q3 2026 operating income growth stalls or turns negative, confirming the net income surge was purely non-operating and core momentum is fadingbearish
Technical breakdown below 200-day MA. Price closes sustainably below the 200-day MA of $200.78 on rising volumebearish

Where this comes from: FMP FY2025 + derived_metrics · FMP FY2024–FY2025 + derived_metrics · peer_relative · FMP FY2024–FY2025. Orin's read on SPG; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Portfolio Management$6.2B0.3% of fund
Vanguard Capital Management$4.6B0.1% of fund
State Street$4.6B0.1% of fund
Geode Capital Management$2.5B0.1% of fund
Capital World Investors$2.4B0.3% of fund
Wellington Management Group Llp$2.1B0.4% of fund

104 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 166 Form 4 filings, net −$6.8M. Of the 50 on hand, 28 were open-market purchases and 0 sales— the rest are grants, option exercises and tax withholding.

Ask Orin about SPG

its filings · its transcripts · its numbers

Orin answers questions about SPG from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.

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Where it trades

vs its own 5y · Real Estate
MetricNowOwn medianSector
P/E14.4×20.4×56.8×
EV/EBITDA12.1×14.7×
P/S9.54×9.42×
P/B14.9×15.4×

Its P/E sits 20th percentile of its own last 5 years (−1.35σ from its own mean).

What the price assumes

6.7%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $3.6B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

38 firms · 2026-09-23
Consensus target

$224

$207$285 · +10% against today's price

How they rate it
  • 16 buy or overweight
  • 20 hold
  • 2 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 23.4× of 4 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
SPGSimon Property Group, Inc.$66B14.4×12.1×84.6%66.4%109%
FRTFederal Realty Investment Trust$9B21.8×13.9×54.0%32.7%13%
KIMKimco Realty Corporation$15B25.0×14.7×54.8%27.7%6%
ORealty Income Corporation$52B40.6×12.2×68.6%22.3%3%
REGRegency Centers Corporation$13B20.6×15.6×35.1%38.2%10%

The median is of the 4 peers listed above and nothing else — check it against the column. This company trades 38.3% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 40.3×FY25 13.1×

What its sector has traded at

Real Estate
FY14 44.0×FY26 52.3×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$255$214.04 · +19%2026-06-10
Levered DCF$184$214.04 · −14%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $204.16
52-week range$172 – $239
Analyst targets$207 – $285
Standard DCF$255 as of 2026-06-10, when it was $214.04
Levered DCF$184 as of 2026-06-10, when it was $214.04
At own 5y-median P/E (20×)$289
At 5y P/E range (13–24×)$185 – $335
At sector P/E (57×)$803

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.