Simon Property Group: A Great REIT At The Wrong Price

Simon Property Group is a high-quality, well-managed REIT, but current valuation limits upside due to rising interest rates and muted earnings growth. Recent dividend growth was driven by a post-pandemic recovery and payout normalization, and is unlikely to continue at the same pace going forward. At current prices, SPG offers a projected total return below 10%, making it less attractive versus other REITs trading at depressed valuations.