Simon Property Group, Inc. (NYSE:SPG) Increases Dividend to $2.30 Per Share

Key Points

• Simon Property Group raised its quarterly dividend 2.2% to $2.30 per share, or $9.20 annualized, representing a 4.1% yield. The dividend is payable December 31 to shareholders of record December 10.
• The REIT’s current dividend payout ratio is 131.4%, meaning earnings alone do not cover payments. Analysts expect improved coverage next year, with an estimated payout ratio of 65.5%.
• Quarterly results beat estimates: earnings were $3.37 per share versus $1.69 expected, while revenue rose 13.3% year over year to $1.81 billion. Analysts’ average rating is “Hold,” with an average price target of $228.67.

Simon Property Group, Inc. (NYSE:SPG - Get Free Report) announced a quarterly dividend on Thursday, November 5th. Stockholders of record on Thursday, December 10th will be paid a dividend of $2.30 per share by the real estate investment trust on Thursday, December 31st. This represents a $9.20 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date is Thursday, December 10th. This is a 2.2% increase from Simon Property Group's previous quarterly dividend of $2.25.

Simon Property Group has raised its dividend by an average of 0.1% annually over the last three years and has raised its dividend every year for the last 4 years. Simon Property Group has a dividend payout ratio of 131.4% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Simon Property Group to earn $13.74 per share next year, which means the company should continue to be able to cover its $9.00 annual dividend with an expected future payout ratio of 65.5%.

Simon Property Group Price Performance

NYSE SPG opened at $227.00 on Friday. Simon Property Group has a 12 month low of $177.88 and a 12 month high of $238.50. The firm has a market capitalization of $73.45 billion, a PE ratio of 16.01, a P/E/G ratio of 3.52 and a beta of 1.27. The company's 50 day simple moving average is $207.69 and its 200 day simple moving average is $206.54. The company has a debt-to-equity ratio of 5.19, a current ratio of 1.05 and a quick ratio of 1.05.

Simon Property Group (NYSE:SPG - Get Free Report) last released its earnings results on Thursday, November 5th. The real estate investment trust reported $3.37 earnings per share for the quarter, topping analysts' consensus estimates of $1.69 by $1.68. Simon Property Group had a return on equity of 89.32% and a net margin of 66.56%. The firm had revenue of $1.81 billion during the quarter, compared to the consensus estimate of $1.63 billion. During the same period in the prior year, the firm posted $3.22 earnings per share. The firm's revenue for the quarter was up 13.3% compared to the same quarter last year. Simon Property Group has set its FY 2026 guidance at 13.300-13.400 EPS. As a group, equities research analysts forecast that Simon Property Group will post 13.24 EPS for the current fiscal year.

Analysts Set New Price Targets

Several brokerages have recently weighed in on SPG. LADENBURG THALM/SH SH upped their price objective on Simon Property Group from $250.00 to $275.00 and gave the company a "buy" rating in a report on Tuesday, August 11th. Barclays dropped their price target on shares of Simon Property Group from $215.00 to $208.00 and set an "equal weight" rating on the stock in a research report on Monday, September 28th. Truist Financial initiated coverage on shares of Simon Property Group in a research report on Friday, October 2nd. They issued a "hold" rating and a $215.00 price target on the stock. Mizuho upped their price target on shares of Simon Property Group from $211.00 to $226.00 and gave the company a "neutral" rating in a report on Thursday, August 27th. Finally, UBS Group reduced their price objective on shares of Simon Property Group from $222.00 to $205.00 and set a "neutral" rating for the company in a research report on Friday, October 9th. Nine investment analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $228.67.

Simon Property Group Company Profile

Simon Property Group, Inc is a self-administered and self-managed real estate investment trust that owns, develops, and operates premier shopping, dining, entertainment, and mixed-use destinations. Its portfolio includes regional malls, premium outlet centers, and other retail properties designed to serve both local shoppers and visitors.

The company's properties feature a broad mix of retailers, restaurants, entertainment venues, and experiential offerings. Simon also provides property management, leasing, development, redevelopment, and marketing services associated with its real estate portfolio.

Simon Property Group was formed in 1993 through the combination of the retail real estate interests of the Simon and DeBartolo families.

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