Simon Property Group: A Great REIT, But No Longer A Great Deal

Simon Property Group is rated Hold, as the current valuation reflects fair value with limited margin of safety amid industry headwinds. SPG delivered strong Q3 results: Real Estate FFO/share up 4.66%, occupancy at 96.5%, and base minimum rent up 6.1%. The $1.4B development pipeline and attractive AFFO yield support accretive growth, but recent buybacks are viewed as a suboptimal capital allocation.