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Simon Property Soars 17.4% Year to Date: Will the Trend Last?

Shares of Simon Property Group (NYSE: SPG) have soared 17.4%% in the year-to-date period compared with its industry's growth of 7.8%.

This retail real estate investment trust's (REITs) portfolio of premium retail assets in the United States and abroad, the adoption of omnichannel retailing, focus on mixed-use developments and healthy balance sheet strength have enabled it to ride the growth curve so far.

Image Source: Zacks Investment Research

Let us now decipher the factors behind the increase in the stock price and check whether the trend will last.

Simon Property enjoys a wide exposure to retail assets across the United States. Moreover, the company's international presence fosters sustainable long-term growth as compared with its domestically-focused peers. Its ownership stake in Klépierre facilitates the expansion of its global footprint, which gives it access to premium retail assets in the high barrier-to-entry markets of Europe. We believe that diversification, with respect to both product and geography, will help it grow over the long term.

In the first half of 2024, it signed 572 new leases and 1,251 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across its U.S. Malls and Premium Outlets portfolio.

Given the favorable retail real ...