Simon Property: 'A' Rating And 5.0x Leverage - One Metric Is More Fragile Than It Looks

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When S&P Global Ratings upgraded Simon Property Group Inc (NYSE:SPG) to A in August 2025, the expectation was that leverage would follow. Six months later, net debt to EBITDA sits at exactly 5.0x — ...

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Six months later, net debt to EBITDA sits at exactly 5.0x — ...</p>\n\n<a href=\"https://www.benzinga.com/Opinion/26/02/50660974/simon-property-a-rating-and-5-0x-leverage-one-metric-is-more-fragile-than-it-looks\">Source Link</a>\n\n</div>\n","source":"benzinga_recent_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Simon Property: 'A' Rating And 5.0x Leverage - One Metric Is More Fragile Than It Looks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSimon Property: 'A' Rating And 5.0x Leverage - One Metric Is More Fragile Than It Looks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-18 01:38 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/Opinion/26/02/50660974/simon-property-a-rating-and-5-0x-leverage-one-metric-is-more-fragile-than-it-looks><strong>Benzinga_recent_news</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When S&P Global Ratings upgraded Simon Property Group Inc (NYSE:SPG) to A in August 2025, the expectation was that leverage would follow. Six months later, net debt to EBITDA sits at exactly 5.0x — ...</p>\n\n<a href=\"https://www.benzinga.com/Opinion/26/02/50660974/simon-property-a-rating-and-5-0x-leverage-one-metric-is-more-fragile-than-it-looks\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SPG","symbol_name":"西蒙地产","start_time":0,"source_url":"https://www.benzinga.com/Opinion/26/02/50660974/simon-property-a-rating-and-5-0x-leverage-one-metric-is-more-fragile-than-it-looks","article_id":"2612461931","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/files/images/story/2026/02/17/reit_0.jpeg?optimize=medium&dpr=2&auto=webp&width=240"],"rights":{"source":"benzinga_recent_news","url":"https://www.benzinga.com/Opinion/26/02/50660974/simon-property-a-rating-and-5-0x-leverage-one-metric-is-more-fragile-than-it-looks","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2612461931","pubTimestamp":1771349880,"columns":[],"sourceInfo":{"source_id":"benzinga_recent_news","name":"Benzinga"},"weMediaInfo":null,"summary":"When S&P Global Ratings upgraded Simon Property Group Inc  to A in August 2025, the expectation was that leverage would follow. Six months later, net debt to EBITDA sits at exactly 5.0x — the same level the company carried into the upgrade. The rating improved. The capital structure stayed.That is not a breach. It is a structural observation worth measuring.Source: S&P Global Ratings, A , August 11, 2025.Simon ended 2025 at 5.0x, down modestly from the low-5x area a year earlier. Management described this as consistent with an A-rated profile.At A/A3, Simon sits four notches above the BBB- boundary. That distance is wide by any measure. The more structurally relevant corridor is A to A- — if leverage drifts back toward the mid-5x range, the rating conversation could shift before the investment-grade boundary becomes relevant.S&P upgraded Simon from A- to A after two years of deleveraging and occupancy recovery. Moody’s holds at A3, equivalent. Both outlooks are stable.The payout ratio ","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"SPG":"西蒙地产"},"translate_title":"Simon Property：“A”评级和5.0倍杠杆率——一项指标比看起来更脆弱","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SPG":1.5},"content_text":"When S&P Global Ratings upgraded Simon Property Group Inc (NYSE:SPG) to A in August 2025, the expectation was that leverage would follow. Six months later, net debt to EBITDA sits at exactly 5.0x — the same level the company carried into the upgrade. The rating improved. The capital structure stayed.\nThat is not a breach. It is a structural observation worth measuring.\nSource: S&P Global Ratings, A (Stable), August 11, 2025.\nThe Numbers (As Of Q4 2025)\nNet Debt to EBITDA: 5.0x\nSimon ended 2025 at 5.0x, down modestly from the low-5x area a year earlier. Management described this as consistent with an A-rated profile.\nAt A/A3, Simon sits four notches above the BBB- boundary. That distance is wide by any measure. The more structurally relevant corridor is A to A- — if leverage drifts back toward the mid-5x range, the rating conversation could shift before the investment-grade boundary becomes relevant.\nSource: SPG Q4 2025 earnings call (February 2, 2026).\nCredit Ratings: A (S&P) / A3 (Moody’s)\nS&P upgraded Simon from A- to A after two years of deleveraging and occupancy recovery. Moody’s holds at A3, equivalent. Both outlooks are stable.\nSource: S&P Global Ratings, August 11, 2025; Moody’s Investors Service.\nFixed Charge Coverage: approximately 5.0x\nAt roughly five times, Simon covers its fixed obligations with significant headroom. This metric alone is consistent with the current rating level.\nSource: SPG Q4 2025 supplemental.\nOccupancy: 96.4%\nMalls and premium outlets ended 2025 at 96.4% as of December 31, 2025, with mills at 99.2%. Base minimum rent increased 4.7% year over year to $60.97 per square foot. Retailer sales reached $799 per square foot.\nSource: SPG Q4 2025 supplemental.\nWhere The Tension Lives\nThe rating improved. Acquisition activity remained elevated.\nOn the Q4 earnings call (February 2, 2026), CEO David Simon noted that tariffs are “clearly having an effect on retailers” and “putting more pressure on them.”\nNo single tenant dominates Simon’s rent roll — the largest inline tenant represents roughly 2 to 3 percent of base minimum rent. But cumulative tariff-driven margin compression across the tenant base may not surface in occupancy immediately. It can appear instead in renewal spreads, tenant improvement allowances, and backfill velocity on vacated space.\nSimon deployed approximately $2 billion in acquisitions in 2025, including the remaining Taubman interest. The development pipeline exceeds $4 billion. Capital of that magnitude can require external funding, particularly if leverage remains near its current level.\n2026 guidance includes $0.25 to $0.30 per share of higher net interest expense. Against record Real Estate FFO of $4.812 billion, that translates to roughly $95 million to $115 million in incremental financing costs — approximately 2% of FY2025 Real Estate FFO.\nThe payout ratio sits at approximately 69%. The dividend increased 4.8% while the interest expense trajectory accelerated. Both trends can coexist — but one consumes retained capital while the other adds to the cost of deployed capital.\nSource: SPG Q4 2025 earnings call; Q4 2025 press release (February 2, 2026).\nStructural Sensitivities\nA sustained acquisition pace at similar leverage impact could shift the 5.0x ratio upward. If that occurs, the corridor between A and A- narrows — not toward distress, but toward a less favorable rating conversation.\nTariff effects on tenant credit tend to be cumulative and slow-moving. One quarter of elevated tenant stress may not alter the structural read. Multiple consecutive quarters could.\nIf the spread between new lease rents and expiring rents narrows, the NOI growth that supported the upgrade could decelerate.\nNone of these are conclusions. They are structural variables.\nThe Structural Read\nFrom a buffer perspective, Simon’s profile is defined not by proximity to the BBB- boundary — that distance is wide — but by how much of the current corridor is being consumed by acquisition-funded growth versus preserved as rating headroom.\nThe upgrade reflected two years of discipline. The question is whether the capital deployment pace preserves that discipline or gradually compresses the corridor from above.\nThe slope of capital deployment can matter as much as the leverage level itself.\nThe numbers tell a story. Whether it changes anything — that part is yours.\nDisclosure: The author holds no position in SPG at the time of writing.\nSources:Simon Property Group Q4 2025 Press Release, February 2, 2026Q4 2025 Earnings Call TranscriptQ4 2025 Supplemental InformationS&P Global Ratings, A (Stable), August 11, 2025Moody’s Investors Service, A3 (Stable)\nBenzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.\nTo add Benzinga News as your preferred source on Google, click here.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2612461931","isCrawlerRequest":true}