Westpac Banking Corp Cuts Holdings in Simon Property Group, Inc. $SPG

Key Points

• Westpac Banking Corp cut its stake in Simon Property Group by 61.3% in the fourth quarter, leaving it with 16,200 shares valued at about $3.0 million.
• Other institutional investors remain heavily involved in SPG, with 93.01% of the stock held by hedge funds and institutions. Notable buyers included Wellington Management, Norges Bank, and Vanguard.
• Simon Property Group posted better-than-expected quarterly results and raised its dividend to $2.25 per share, while analysts currently have a consensus Hold rating with an average price target of $205.57.

Westpac Banking Corp cut its position in shares of Simon Property Group, Inc. (NYSE:SPG - Free Report) by 61.3% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 16,200 shares of the real estate investment trust's stock after selling 25,609 shares during the quarter. Westpac Banking Corp's holdings in Simon Property Group were worth $2,999,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in SPG. Wellington Management Group LLP boosted its holdings in Simon Property Group by 634.5% during the third quarter. Wellington Management Group LLP now owns 7,370,089 shares of the real estate investment trust's stock worth $1,383,145,000 after purchasing an additional 6,366,711 shares during the last quarter. Norges Bank purchased a new position in Simon Property Group in the fourth quarter valued at about $1,112,111,000. Capital World Investors boosted its stake in Simon Property Group by 45.0% in the third quarter. Capital World Investors now owns 8,384,133 shares of the real estate investment trust's stock valued at $1,573,450,000 after acquiring an additional 2,600,508 shares during the last quarter. Vanguard Group Inc. boosted its stake in Simon Property Group by 1.8% in the third quarter. Vanguard Group Inc. now owns 46,683,502 shares of the real estate investment trust's stock valued at $8,761,093,000 after acquiring an additional 844,190 shares during the last quarter. Finally, Barclays PLC boosted its stake in Simon Property Group by 78.9% in the third quarter. Barclays PLC now owns 1,103,843 shares of the real estate investment trust's stock valued at $207,158,000 after acquiring an additional 486,967 shares during the last quarter. 93.01% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on SPG shares. UBS Group boosted their target price on shares of Simon Property Group from $189.00 to $199.00 and gave the company a "neutral" rating in a research note on Monday, May 18th. Evercore set a $207.00 target price on shares of Simon Property Group in a research note on Tuesday, May 12th. Citigroup boosted their target price on shares of Simon Property Group from $189.00 to $205.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. Stifel Nicolaus boosted their target price on shares of Simon Property Group from $185.00 to $194.00 and gave the company a "hold" rating in a research note on Tuesday, May 12th. Finally, Piper Sandler reiterated an "overweight" rating and issued a $230.00 target price (up from $225.00) on shares of Simon Property Group in a research note on Tuesday, February 3rd. Five research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $205.57.

Simon Property Group Stock Performance

Shares of SPG stock opened at $203.47 on Wednesday. The stock has a market capitalization of $65.98 billion, a P/E ratio of 14.14, a PEG ratio of 3.67 and a beta of 1.31. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 4.68. The firm's 50 day moving average is $198.10 and its 200 day moving average is $192.06. Simon Property Group, Inc. has a 12 month low of $155.44 and a 12 month high of $208.79.

Simon Property Group (NYSE:SPG - Get Free Report) last announced its quarterly earnings results on Monday, May 11th. The real estate investment trust reported $1.48 EPS for the quarter, beating analysts' consensus estimates of $1.46 by $0.02. The company had revenue of $1.76 billion for the quarter, compared to analysts' expectations of $1.54 billion. Simon Property Group had a net margin of 70.60% and a return on equity of 104.54%. Simon Property Group's revenue was up 19.3% compared to the same quarter last year. During the same period in the prior year, the company posted $2.95 EPS. Simon Property Group has set its FY 2026 guidance at 13.100-13.250 EPS. On average, sell-side analysts anticipate that Simon Property Group, Inc. will post 13.2 earnings per share for the current year.

Simon Property Group Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 9th will be paid a dividend of $2.25 per share. This represents a $9.00 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date is Tuesday, June 9th. This is an increase from Simon Property Group's previous quarterly dividend of $2.20. Simon Property Group's dividend payout ratio is currently 61.15%.

Simon Property Group announced that its Board of Directors has approved a share buyback plan on Thursday, February 5th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the real estate investment trust to purchase up to 3.1% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

About Simon Property Group

Simon Property Group, Inc NYSE: SPG is a publicly traded real estate investment trust (REIT) that owns, develops and manages retail real estate properties. Its core business activities include acquisition, development, leasing and property management of regional malls, outlet centers and mixed‑use retail destinations. The company operates retail brands that include high‑profile regional shopping centers and the Premium Outlets platform, and it provides services such as tenant leasing, marketing, property operations and capital projects to optimize asset performance.

Simon's portfolio spans a broad mix of enclosed malls, open‑air centers, outlet properties and mixed‑use developments, and the company pursues redevelopment and repositioning to adapt properties to changing consumer and retail trends.

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