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Simon Property Group posts 20% asset growth in Q4 2023 financial report

A 20% asset jump and rock-solid credit ratings put SPG in the spotlight. Will this retail giant keep outpacing the stock market's expectations?

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Simon Property Group posts 20% asset growth in Q4 2023 financial report

Simon Property Group (SPG) has reported strong financial figures for the final quarter of 2023. The company's total assets grew by 20% from the previous quarter, reaching around $40.6 billion. Analysts are now reviewing its latest performance and credit ratings on Yahoo Finance and the stock market today.

SPG currently holds a market capitalisation of roughly $72.98 billion. Its total debt stands at about $29.18 billion, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at $3.17 billion. The group owns over 250 properties spread across 25 different markets.

The company's financial health is reflected in its key metrics. Its asset yield is 11.33%, and the asset coverage ratio sits at 139%. Operating expenses account for 27.6% of total revenue, while rental income makes up 14.38% of earnings. Interest expenses, relative to debt, remain at 3.34%.

Credit agencies have maintained stable ratings for SPG. Standard & Poor's kept its 'A' rating, projecting stability into 2024-2025. Moody's rated its over-the-counter bonds at 'A3', with a yield to maturity nearing 5.63%. Meanwhile, SPG's preferred stock, SPG.PR.J, holds a 'BBB+' rating from S&P, offering a yield to worst of around 3.23%.

Other notable figures include a market-adjusted asset yield of 4% and a market-adjusted asset coverage ratio of 392%. The company's adjusted funds from operations (AFFO) yield is expected to be 6.02%.

SPG's latest financial results highlight its growth in assets and stable credit position. With a strong portfolio and consistent revenue streams, the company continues to attract attention from investors. The ratings from major agencies further reinforce its standing in the S&P 500 and the broader stock market.

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