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Dear Fellow Investor,
One of the Top Yielding REITs to Add to Your Portfolio
When markets turn chaotic, income investors know one thing for certain: yield matters. A consistent dividend can provide stability and cash flow even as stock prices swing wildly. And among high-yielding opportunities today, real estate investment trusts (REITs) remain some of the most reliable plays.
One standout worth a closer look? Simon Property Group (SYM: SPG).
Why REITs Deserve Attention
For decades, REITs have been a go-to for income-focused investors. By law, these companies must distribute at least 90% of taxable income as dividends to shareholders. That makes them powerful yield generators in both calm and turbulent markets.
But not all REITs are created equal. The best combine healthy payouts with high-quality real estate, strong occupancy rates, and management teams that know how to navigate cycles. Simon Property checks all of those boxes.
Simon Property Group: A Retail Powerhouse
With a current yield of about 4.66%, Simon Property Group is one of the premier REITs on the market. The company owns and operates some of the most valuable retail real estate across North America, Europe, and Asia. Its portfolio spans shopping centers, dining destinations, premium outlets, and mixed-use spaces—prime locations that consistently attract both retailers and consumers.
The company’s next quarterly dividend of $2.15 per share is set to be paid on September 30 to shareholders of record as of September 9. At its current yield, that dividend stream is far superior to what investors can earn from savings accounts or Treasuries.
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Occupancy and Retail Strength
One of the most encouraging metrics for Simon Property has been its consistently high occupancy levels.
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At the end of June 2025, U.S. mall and premium outlet occupancy stood at 96%.
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That’s up slightly from 95.9% in March and 95.6% in June 2024.
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Base minimum rent per square foot rose to $58.70 from $57.94 a year earlier, reflecting pricing power in a strong retail environment.
These numbers show that despite years of headlines predicting the “death of brick-and-mortar retail,” the reality is quite different.
The 2025 Colliers Retail Outlook confirmed this trend, noting:
“Physical retail is still central to consumer shopping habits, with shopping center occupancy at a decade-high rate of 95.6%. Brick-and-mortar locations are increasingly vital as critical drivers of omnichannel strategies, blending in-store and online shopping. Retailers that integrate experience and convenience are best positioned to thrive in 2025.”
Simply put, malls and premium outlets are not going away—they’re evolving. Simon Property Group, with its focus on premier properties, is in the driver’s seat.
Earnings Momentum
Financially, Simon Property has been delivering.
In its most recent quarter:
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Funds from operations (FFO) came in at $3.15, beating analyst estimates by $0.10.
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Revenue rose to $1.5 billion, a 2.7% year-over-year increase, topping forecasts by $110 million.
CEO David Simon highlighted the company’s strengths:
“We delivered another successful quarter, driven by the quality of our portfolio and disciplined execution. Our strategic investments and A-rated balance sheet position us for sustained long-term cash flow growth. Today, we are raising our dividend and increasing the mid-point of our full-year 2025 Real Estate FFO guidance.”
That kind of commentary signals confidence not just in the next quarter, but in the company’s long-term ability to generate income for shareholders.
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Upgraded Guidance
Looking ahead, Simon Property has raised its full-year 2025 FFO guidance to a midpoint of $12.55, slightly above Wall Street’s expected $12.36. That’s also higher than its prior midpoint guidance of $12.53.
While the increase may look small, it’s an important signal. It shows management’s confidence in continuing growth, especially at a time when many other real estate players are struggling with tighter credit and shifting demand.
The Yield Advantage
At a yield now approaching 5.12%, Simon Property offers investors both stability and growth. Compared to the S&P 500 average yield of less than 1.5%, SPG is a clear standout. Even against 10-year Treasuries, which hover closer to 4%, Simon’s combination of income and capital appreciation potential makes it highly attractive.
In an environment where inflation remains sticky and interest rate expectations continue to shift, having a reliable income stream with growth potential is invaluable.
The Big Picture: Retail is Evolving, Not Dying
The narrative around retail real estate has often focused on its decline in the face of e-commerce. But the data tells a different story. Occupancy rates are near decade highs, retailers are embracing omnichannel strategies, and premium malls remain crucial for brand visibility.
For Simon Property, this backdrop creates a unique advantage:
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Stable tenants – Luxury retailers, restaurants, and entertainment companies rely on premium spaces.
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Pricing power – Rising base rent per square foot reflects strong demand.
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Diversification – With properties across the U.S., Europe, and Asia, Simon isn’t dependent on one region.
As retail evolves into a hybrid of online and physical experiences, Simon’s portfolio of premier destinations positions it as a long-term winner.
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Are there any other dividend focused stocks you swear by (REITs or other)? What specific sectors of the market do you think are on their way up right now? Hit "reply" to this email and let us know your thoughts!
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