Simon Property Group (SPG) is scheduled to release its fourth quarter 2012 earnings on February 4, before the market opens. The company's third quarter 2012 results surpassed the Zacks Consensus Estimate, thanks to an increase in average rent and occupancy.
Simon Property boasts a strong portfolio of assets and enjoys competitive advantage through product and geographical diversification. The recent acquisitions and partnerships further strengthen the company's presence in the core U.S. markets. Additionally, the company has a strong balance sheet with adequate liquidity.
The company does have a significant development pipeline, which increases operational risks in the current credit-constrained market. Nevertheless, we maintain our long-term Outperform recommendation on the stock, driven by its strong fundamentals.