W
e recently published a list of the 10 best real estate stocks to buy according to billionaires. In this article, we'll examine where Simon Property Group, Inc. (NYSE:SPG) stands against other top picks.

    CBRE Investment Management predicts that global listed real estate will outperform broad equities in 2025, offering a differentiated total return compared to private markets. The firm believes listed real estate is in the early days of a new upcycle, characterized by accelerating organic earnings, improved supply/demand, and abundant capital market access.

    A new cycle for listed real estate began in Q4 2023 with the recognition of a pause in rate hikes. CBRE Investment Management expects this to be powerful for listed real estate, even without a strong fall in target rates. Real estate has performed well during periods of range-bound long-term yields, generating double-digit average returns between 2001-2007.

    CBRE Investment Management forecasts accelerating earnings growth across the real estate sectors into 2025, with globally expected 5% earnings growth, around double that of 2024 levels. The firm sees broad-based strength in private-pay senior housing, data center growth, cell towers recovering from customer churn, and retail and net leases performing well due to supply/demand and capital costs.

    The total return opportunity for REITs remains compelling, with listed real estate offering a ~4% dividend yield, competitive versus private real estate income. Amidst moderating central bank target rates and range-bound long-term yields, CBRE Investment Management believes listed real estate will prosper.

    Simon Property Group, Inc. (NYSE:SPG) is a self-administered and self-managed real estate investment trust with 8 billionaire investors and 40 hedge fund holders. UBS analyst Michael Goldsmith maintains a "Neutral" rating on the company's stock with a steady price objective of $180.00.

    Simon Property Group, Inc. (NYSE:SPG) has a high occupancy rate and robust sales growth at Roosevelt Field Mall, strong foot traffic and retailer demand, and dynamic merchandising strategies. The company's ability to attract and retain tenants showcases its properties' desirability for retailers. With a record FFO of ~$4.9 billion in 2024 and over $3 billion returned to shareholders, Simon Property Group, Inc. (NYSE:SPG) has executed significant redevelopment projects and strengthened its balance sheet.

    Overall, SPG ranks 9th on our list of best real estate stocks to buy according to billionaires. While acknowledging the potential of SPG as an investment, we believe some deeply undervalued AI stocks hold greater promise for delivering higher returns within a shorter time frame.