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    Is Simon Property Group’s US$800 Million 4.3% Refi Reshaping SPG’s Balance Sheet Narrative?

    Simply Wall St·01/09/2026 04:55:03
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    • Simon Property Group’s operating partnership recently agreed to issue US$800 million of 4.300% senior notes due 2031, with closing expected on January 13, 2026, to repay an equal amount of 3.300% notes that matured in 2026.
    • The refinancing highlights Simon’s focus on reshaping its liability profile at a higher coupon amid concerns around leverage, liquidity, and overall balance sheet resilience.
    • We’ll now examine how this US$800 million refinancing at a 4.300% coupon could influence Simon Property Group’s broader investment narrative.

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    Simon Property Group Investment Narrative Recap

    To own Simon Property Group, you need to believe high quality malls and mixed use centers can keep attracting strong tenants and steady foot traffic despite ongoing pressure on physical retail. The new US$800,000,000 in 4.300% notes, used to refinance 3.300% 2026 notes, modestly extends maturities but does not remove the key near term risk around refinancing in a higher rate context and its effect on interest expense and dividend coverage.

    Among recent announcements, the series of director share increases through dividend reinvestment under the 2019 Stock Incentive Plan stands out as most relevant here, because it underlines ongoing insider exposure to both the company’s balance sheet choices and its ability to keep funding a sizable dividend. For investors focused on catalysts, that dividend track record remains central, but sits alongside the need to fund US$1,000,000,000 of redevelopment and manage a higher cost of debt.

    Yet what many investors may not fully appreciate is how rising refinancing costs could interact with already elevated leverage and...

    Read the full narrative on Simon Property Group (it's free!)

    Simon Property Group's narrative projects $6.2 billion revenue and $2.4 billion earnings by 2028.

    Uncover how Simon Property Group's forecasts yield a $194.05 fair value, a 5% upside to its current price.

    Exploring Other Perspectives

    SPG 1-Year Stock Price Chart
    SPG 1-Year Stock Price Chart

    Seven fair value estimates from the Simply Wall St Community span roughly US$99 to US$262 per share, showing how far apart individual views can be. When you set those against concerns about rising refinancing costs and their impact on dividend coverage, it becomes clear why exploring several alternative viewpoints on Simon’s outlook can be helpful.

    Explore 7 other fair value estimates on Simon Property Group - why the stock might be worth as much as 41% more than the current price!

    Build Your Own Simon Property Group Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    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.