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.

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.