Is Simon Property Group, Inc. (SPG) A Good Stock To Buy Now?

Is SPG a good stock to buy? We came across a bullish thesis on Simon Property Group, Inc. on Investing Lawyer’s Substack. In this article, we will summarize the bulls’ thesis on SPG. Simon Property Group, Inc.'s share was trading at $201.29 as of April 27th. SPG’s trailing and forward P/E were 14.21 and 29.59 respectively according to Yahoo Finance.

Simon Property Group (SPG) is the world’s largest shopping mall REIT and a dominant owner of premium retail real estate, with a portfolio of more than 230 properties across North America, Europe, and Asia.

The company has a long track record of dividend payments since 1994 and has steadily evolved its malls into mixed-use destinations incorporating retail, hospitality, residential, and office components. Its revenue model is anchored in rental income from tenants, combining base rent, percentage rent linked to tenant sales, and common area maintenance charges that support property operations.

SPG’s redevelopment strategy focuses on repositioning malls into experiential, high-quality destinations that enhance tenant productivity and long-term occupancy stability. A key tailwind for the business is a lower interest rate environment, which reduces borrowing costs, strengthens free cash flow, and supports higher asset valuations through cap rate compression. Lower rates also stimulate consumer spending, indirectly boosting tenant sales and supporting rental growth across SPG’s portfolio.

The stock offers an attractive income profile with a dividend yield of 5.27%, an annual dividend of $2.10 per share, and a payout ratio near 65%, supported by stable cash flows and a history of dividend growth over three consecutive years.

Overall, SPG represents a high-quality real estate platform combining defensive cash flows, embedded inflation protection, and multiple levers for value creation through redevelopment and rate-driven valuation upside. It remains positioned as a defensive compounder with steady income and cyclical upside tied to macro rate dynamics and retail recovery trends over the long term outlook.

Previously, we covered a bullish thesis on Simon Property Group (SPG) by David in April 2025, which highlighted income stability, free cash flow, luxury tenant base, and disciplined capital allocation. SPG's stock price has appreciated by approximately 35.96% since our coverage. Investing Lawyer shares similar view but emphasizes mixed-use redevelopment, interest rate tailwinds, and cap rate compression driving valuation upside.

Simon Property Group, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held SPG at the end of the fourth quarter which was 36 in the previous quarter. While we acknowledge the risk and potential of SPG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SPG and that has 10,000% upside potential, check out our report about this cheapest AI stock.