Simon Property Group (SPG) Valuation Spotlight as New Humana Partnership Expands Experiential Retail Strategy

Simon Property Group just unveiled a fresh collaboration with Humana, rolling out a health and well-being initiative across 21 of its shopping centers. This program, centered on the Humana Walking Club, aims to get communities moving with regular mall walks and wellness events that are open and free to the public. Beyond encouraging healthy habits, the move lets Simon tap into a growing push for experiential offerings. This approach helps drive traffic, bolster partnerships, and position their properties as destinations for more than just shopping. For investors, the announcement arrives amid a period of consistent, if not spectacular, gains for Simon Property Group. Shares have climbed 11% in the last year and are up over 12% in the past 3 months, suggesting that momentum has picked up compared to earlier in the year. Recent signals, including stable revenue growth and an expanding slate of tenant services, underscore management’s drive to find new value in existing properties instead of relying solely on traditional retail rent streams. After this stretch of steady gains and new initiatives, the question remains whether Simon Property Group represents an overlooked opportunity or if the market has already factored these growth efforts into today’s price.

Most Popular Narrative: 3.7% Undervalued

According to community narrative, Simon Property Group is viewed as modestly undervalued. Analysts highlight both strategic opportunities and near-term challenges reflected in current pricing.

Strategic redevelopment and transformation of existing assets into mixed-use, experience-focused environments, such as ongoing projects and the Brickell City Centre acquisition, target evolving consumer preferences for experience-driven destinations. This approach supports not only stable rent growth but also incremental revenue from diversified income streams, which can strengthen margins and long-term earnings power.

Interested in the assumptions supporting this valuation? The narrative points to profit expansion and a premium price tag that traditional REITs seldom achieve. For details on which future benchmarks for margins and earnings would support that price, explore what underlies this consensus outlook.

Result: Fair Value of $183.3 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued retail bankruptcies and rising redevelopment costs could challenge Simon Property Group's growth story if these risks intensify in coming quarters.

Find out about the key risks to this Simon Property Group narrative.

Another View: Discounted Cash Flow Model

While analyst targets focus on future earnings and industry comparisons, our DCF model takes a different path. It considers projected cash flows and supports an undervalued view. Could this method reveal potential missed by others?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Simon Property Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Simon Property Group Narrative

If the consensus view does not reflect your own outlook or you are keen to dive into the numbers yourself, you can craft a unique take in just a few minutes. do it your way.

A great starting point for your Simon Property Group research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for More Smart Investment Ideas?

Great opportunities are never limited to just one company. If you want to stay ahead and grow your wealth, now is the moment to look beyond the obvious. Check out these handpicked market themes that savvy investors are watching. You will not want to miss what is happening in these spaces.

• Secure your portfolio with dividend stocks with yields > 3% and enjoy more consistent income from companies known for paying robust yields above 3%.
• Ride the innovation wave by tapping into healthcare AI stocks to uncover healthcare businesses powered by artificial intelligence and redefining digital health.
• Stay ahead of market trends by tracking penny stocks with strong financials featuring penny stocks backed by rock-solid financials and long-term growth potential.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com