Core Viewpoint - The article updates the rating of Simon Property Group, Inc. (NYSE: SPG) preferred shares, specifically SPG.PR.J, to "Buy" [1] Group 1: Company Overview - Simon Property Group, Inc. is focusing on its preferred shares, indicating a strategic move to attract investors [1] - The preferred shares in question offer an 8.375% yield, which may appeal to income-focused investors [1] Group 2: Investment Strategy - The article is part of a broader service that includes frequent picks for mispriced preferred stocks and baby bonds, suggesting a proactive investment approach [1] - The service also provides weekly reviews of over 1200 equities, IPO previews, and hedging strategies, indicating a comprehensive investment analysis framework [1]

Company Performance - Simon Property Group, Inc. (NYSE: SPG) has underperformed the market year-to-date, showing high single-digit underperformance since the last recommendation against investing [2]. Strategic Initiatives - The company is addressing the challenges posed by a new wave of modern malls, indicating a proactive approach to adapt to changing market conditions [2]. Investment Strategy - The Value Portfolio focuses on building retirement portfolios through a fact-based research strategy, which includes extensive analysis of 10Ks, analyst commentary, market reports, and investor presentations [2].

Core Viewpoint - The article reaffirms the belief in Simon Property Group (NYSE: SPG) as a strong investment opportunity, particularly highlighting its attractive 7% dividend yield [1]. Group 1 - The article references a previous analysis conducted nearly two years ago, indicating a long-term perspective on the investment potential of Simon Property Group [1].

Core Viewpoint - Simon Property Group Inc (NYSE:SPG) has shown positive momentum by breaking through key resistance levels, indicating potential for further gains in the stock price [2][6]. Group 1: Stock Performance - SPG cleared a pivot range between $168.50 and $171.50, surpassing both November-December lows and April-May highs [2]. - The stock has broken above its 200-day moving average, which previously acted as a resistance level [2]. - Over the past three years, SPG averaged a 155% gain after 66% of instances where it approached this trendline [2]. Group 2: Analyst Sentiment - Despite the recent stock performance, most analysts maintain a neutral stance on SPG, with 10 out of 19 analysts currently holding a "hold" rating [6]. - This neutral sentiment suggests potential for upgrades in the future as the stock continues to perform well [6]. Group 3: Options Trading - Options for SPG are currently affordably priced, with a Schaeffer's Volatility Index (SVI) of 19%, placing it in the low 4th percentile of readings from the past year [6]. - A recommended call option has a leverage ratio of 14.68, which will double on a 6.4% rise in the underlying security [7].

Group 1 - The article discusses the author's approach to stock rating, emphasizing a reevaluation of methods due to being a relatively new analyst [1] - The author specializes in identifying Real Estate Investment Trusts (REITs) that are currently undervalued in the market [1] - The investment strategy focuses on long-term horizons, contrarian views, and deep-value opportunities [1]

Financial Data and Key Metrics Changes - The company reported revenue of €926 million for H1 2025, reflecting a 6% increase on an underlying basis and a 5% increase on a reported basis [30][32] - Adjusted operating profit (AOP) reached €241 million, with a 10% increase on an underlying basis and a 7% increase on a reported basis [30][34] - Free cash flow improved significantly by 51%, totaling over €200 million [6][35] - Adjusted earnings per share (EPS) increased to €0.83 from €0.57 in H1 2024, marking a 46% year-on-year increase [31][39] Business Segment Data and Key Metrics Changes - The research segment generated underlying revenue of €727 million, with a 7% revenue growth and 8% AOP growth [9][30] - The health segment reported underlying revenue of €90 million, representing a 4% growth, with AOP increasing by 19% to €15 million [12][13] - The education segment saw underlying revenue of €108 million, reflecting a 3% growth, with a strong 6.5% growth in Q2 driven by curriculum business performance [14][30] Market Data and Key Metrics Changes - The global article market grew by about 6%, while the company's article output increased by about 10%, indicating market share gains [9][10] - The full open access market experienced 9% growth, with the company outperforming at 25% growth in this segment [10][30] Company Strategy and Development Direction - The company raised its guidance for the 2025 fiscal year, reflecting positive momentum across the business, particularly in research [7][39] - Investments in AI and technology are central to the company's strategy, with a focus on enhancing the research process and improving operational efficiency [6][16] - The company aims to maintain its leadership in open access publishing, having published over 50% of primary research content open access in H1 2025 [15][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business, supported by a high share of contracted revenues and a diversified global revenue base [41][60] - The company anticipates continued growth in the research segment, with strong submission volumes and publication growth expected to drive revenue [7][39] - Management noted that the impact of AI is viewed positively, as it is expected to enhance the publication process rather than disrupt it [70][72] Other Important Information - The company has launched several AI tools to improve the research workflow, including the Nature Research Assistant, which is currently in a controlled beta phase [24][25] - The company received a gold rating from EcoVadis for sustainability, placing it in the top 5% of companies assessed [20] Q&A Session Summary Question: Market share gains in full open access - Management attributed market share gains to the quality of their portfolio, increased journal launches, and investments in research integrity and AI [46][50] Question: Margin expansion targets - Management indicated that while they aim for 100 basis points of margin expansion, current performance may limit future expectations [47][53] Question: U.S. market environment for renewals - Management expressed optimism about the U.S. renewal campaign, noting that library budgets are resilient despite fluctuations in government funding [56][60] Question: Relationship with Digital Science - Management clarified that Digital Science is treated as an independent supplier, with no special relationship affecting their operations [62] Question: Potential disruption from AI - Management believes AI will enhance their business rather than disrupt it, as they focus on responsible AI use to improve the publication process [70][72] Question: Revenue guidance changes - Management explained that the revenue guidance upgrade is due to market share gains and improved visibility from completed renewals [67][72] Question: Future demand for open access journals - Management remains confident in their ability to capture market share despite potential competition from other open access publishers [87][89] Question: Share buyback considerations - Management stated that share buybacks would be considered once leverage is within the target range and free float increases [90][91] Question: Balance sheet capacity and acquisitions - Management emphasized a focus on deleveraging and interest expense reduction, with potential acquisitions being evaluated based on strategic fit [98][99]

Financial Data and Key Metrics Changes - The company reported underlying revenue growth of 6% and adjusted operating profit (AOP) increasing by 10% in H1 2025 [5][34] - Free cash flow increased by 51%, totaling more than €200 million in 2025 [6] - Adjusted earnings per share rose to €0.83 from €0.57 in H1 2024 [43] Business Segment Data and Key Metrics Changes - The research segment generated underlying revenue of €727 million, with 7% revenue growth and 8% AOP growth [9] - Health segment reported underlying revenue of €90 million, representing 4% growth, with AOP increasing by 19% to €15 million [13] - Education segment reported underlying revenue of €108 million, with a growth of about 3% [14] Market Data and Key Metrics Changes - The global article market grew by about 6%, while the company's article output increased by about 10% [10] - The full open access market saw 9% growth, with the company outperforming at 25% growth [11] Company Strategy and Development Direction - The company has raised its guidance for the 2025 fiscal year, reflecting positive momentum, particularly in research [7][43] - Investments in AI and technology are aimed at transforming the research ecosystem, with over 90 AI applications in use [17][24] - The company continues to focus on open access as a core pillar of its research strategy, publishing over 50% of primary research content open access [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business, supported by a high share of contracted revenues [45] - The company expects underlying group revenue to be between €1.96 billion and €1.98 billion for 2025, assuming stable economic conditions [44] Other Important Information - The company launched 24 new journals in the first half of the year, including Nature Clean Technology and Nature Biodiversity [11] - The company received a gold rating from EcoVadis for sustainability, placing it in the top 5% of companies [22] Q&A Session Summary Question: What attributed to the 25% growth in full open access published articles? - Management attributed the growth to the quality of the portfolio, increased investment in new journals, and enhanced research integrity initiatives [49][52] Question: Will margin expansion targets change due to current performance? - Management indicated that while current performance is strong, they would focus on 2025 before discussing midterm margin expansion targets [50][56] Question: How is the market environment in the U.S. for the 2026 renewal campaign? - Management noted that the U.S. market remains resilient, with a significant portion of revenues contracted, and they expect a smaller number of renewals in 2026 [60][63] Question: How does the company view potential disruption from AI? - Management believes that AI will positively impact the industry by improving the publication process and reducing friction, rather than being a disruptive force [70][75] Question: What factors drove the significant change in revenue guidance? - Management expects H2 growth to be in line with H1, driven by completed renewals and strong submission volumes [71][76] Question: What is the expected adjusted effective tax rate for the full year? - Management anticipates the tax rate to decrease to around 12% for the full year due to recent changes in German corporate tax legislation [81] Question: At what level of leverage would the company consider share buybacks? - Management stated that share buybacks would be considered once the free float increases and after achieving their deleveraging targets [88][92]

Company Overview - Springer Nature reported revenues of €1.85 billion in 2024[7] - Research segment contributes 77% to Springer Nature's revenues[11, 12] - Digital revenues account for 88% of Springer Nature's total revenues[12] - Contracted revenues represent 62% of Springer Nature's research revenues[12] Market Position and Growth - The research publishing market is estimated at €10.2 billion in 2023[17] - North America accounts for 42% of the research publishing market in 2023[17] - The number of research articles has grown from 1.6 million in 2013 to 2.6 million in 2023, representing a 5% CAGR[20] Open Access and Technology - Springer Nature published half of its primary research content open access in 2024[29] - Springer Nature has over 90 AI initiatives to transform the publishing process[31] - Snapp, Springer Nature's submission platform, has received over 2 million submissions since launch[32] Strategy and Goals - The company aims to outperform the Research market by around +1% p.a in the mid-term, assuming a market growth of +30% to +35% p.a[43] - Springer Nature expects to increase its adjusted operating profit margin by approximately 100bps mid-term[43]

Core Viewpoint - Simon Property Group, L.P. is issuing new senior notes to refinance existing debt and support general corporate purposes, indicating a strategic move to manage its capital structure effectively [1][2]. Group 1: Financial Details - The new senior notes issuance includes $700 million of 4.375% Notes due 2030 and $800 million of 5.125% Notes due 2035, with a combined weighted average term of 7.8 years and a weighted average coupon rate of 4.775% [1][7]. - The proceeds from the offering will be used to repay a portion of the $1.1 billion outstanding principal amount of 3.500% notes due September 2025 at maturity [2]. Group 2: Offering Management - BBVA Securities Inc., J.P. Morgan Securities LLC, TD Securities (USA) LLC, and Wells Fargo Securities, LLC are acting as joint book-running managers for the public offering, which is conducted under the Operating Partnership's shelf registration statement [3].

Core Insights - Realty Income Corporation (O) and Simon Property Group, Inc. (SPG) are two leading real estate investment trusts (REITs) known for their strong dividend profiles and substantial real estate portfolios [1][2] Group 1: Realty Income Corporation - Realty Income is recognized for its monthly dividend payments and a diversified global net-lease portfolio, boasting 661 consecutive monthly payouts and over 30 years of dividend increases [4][10] - The company has a portfolio of more than 15,600 properties across 50 U.S. states and several countries, with around 90% of rent coming from non-discretionary tenants, which helps ensure predictable rental income [4][5] - In Q2 2025, Realty Income reported an AFFO per share of $1.05, a 98.6% occupancy rate, and $1.2 billion in investment activity, with 76% of investments in Europe at yields above 7% [5][6] - The company has increased its 2025 investment volume guidance to approximately $5 billion, with a slight increase in AFFO per share guidance [6] - Realty Income's growth is primarily acquisition-driven, making it sensitive to financing conditions and currency fluctuations, leading to a more predictable earnings profile compared to SPG [7][8] Group 2: Simon Property Group - Simon Property Group is a major player in the U.S. retail REIT sector, owning premier malls and mixed-use properties that attract high foot traffic, with an average sales figure of $736 per square foot [9][12] - In Q2 2025, SPG reported a Real Estate FFO per share of $3.05, a 4.1% year-over-year increase, and raised its full-year guidance to $12.45-$12.65 [12][13] - The company has a strong balance sheet with an A rating and $9.2 billion in liquidity, supporting its redevelopment projects and acquisitions [13] - SPG's dividend was raised to $2.15, marking a 2.4% increase, and it has increased its dividend 13 times in the past five years [12][15] - While SPG offers higher nominal dividends and potential for capital appreciation, it carries greater cyclical risk due to reliance on discretionary retail [14][15] Group 3: Comparative Analysis - Realty Income has seen a year-to-date stock increase of 7.5%, while Simon Property's stock has declined by 4.1%, contrasting with the broader REIT industry decline of 9% [18] - Realty Income is trading at a forward price-to-FFO of 13.18X, slightly above its one-year median, while SPG is at 13.00X, below its one-year median [19] - Both companies are recognized for their disciplined management and strong tenant relationships, with Realty Income being more suitable for risk-averse investors, while Simon offers greater growth potential in favorable market conditions [21][22]