SPG Investments, US Portfolio Built Up in Upcoming Quarters

Raina Brown - Author

Dec. 29 2017, Updated 10:31 a.m. ET

SPG’s US portfolio

SPG is a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations. Its properties are spread across North America, Europe, and Asia.

SPG’s spectrum constitutes 206 US portfolio properties and 182 million square feet of gross living area (or GLA). Tenants in the US portfolio generate annual retail sales of ~$62 billion.

SPG’s occupancy for malls and Simon Premium Outlets stands at 95.0%. Its total sales per square foot of $615 and for the mills, occupancy stands at 97.7% with total sales per square foot of $562.

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Highest market capitalization

SPG has equity capitalization of ~$59.9 billion, which is much higher than its competitors. General Growth Properties (GGP) has equity capitalization of ~$22.2 billion followed by Vornado Realty Trust (VNO) at ~$14.6 billion, Macerich Company (MAC) at $9.3 billion, and Kimco Realty Corporation (KIM) at ~$7.7 billion.

Simon Property constitutes ~7.6% of the Real Estate Select Sector SPDR ETF (XLRE) and ~8.2% of the iShares Cohen & Steers Realty Majors ETF (ICF).

Company strengths

SPG has $1.0 billion of projects under construction and the highest investment-grade credit ratings in the industry—A2 by Moody’s and A by Standard & Poor’s—resulting in a low cost of capital.

As of 3Q17, Simon Property Group had liquidity of more than $6.5 billion of cash on hand, which includes cash from its joint ventures and revolving credit facilities.

Corporate leadership

  • SPG was named Fortune’s Most Admired Real Estate Company in 2017 for the eighth time.
  • It has also been included in the best-performing global CEOs by Harvard and the World’s Best 30 CEOs by Barron’s, 2013.
  • SPG received the award for Number 1 CEO in the real estate industry by Institutional Investor, 2009–2017

Simon Property Group has been involved several sustainability programs related to energy, water, and waste. It received CDP’s highest leadership recognition for top sustainability performance in 2016.

SPG was also ranked on the Climate Disclosure Leadership Index seven times, and it was named on the Climate Performance Leadership Index for 2014–2015.

In our next article, we’ll find out how the company maximizes its return to its shareholders.


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