Graham P/E and Number: Why Realty Income Outshines Simon Property

In a new Seeking Alpha analysis, the article examines how Realty Income Corporation (NYSE: O) compares with Simon Property Group (NYSE: SPG) using valuation metrics inspired by Benjamin Graham, particularly the Graham P/E and Graham number. Both real estate investment trusts (REITs) stand to benefit from the Federal Reserve’s recent interest rate cuts, which support higher P/FFO multiples (Price to Funds From Operations), a key valuation measure for REIT stocks. However, when valuation is benchmarked against AAA bond yields the traditional Graham way, Realty Income appears to offer a more compelling opportunity than Simon Property. The analysis highlights that Realty Income’s growth in FFO, discounted valuation, solid acquisition pipeline, and stronger balance sheet position it better relative to Simon Property under this valuation framework. Realty Income also benefits from its emphasis on consistent monthly dividends and defensive cash flow characteristics, making it attractive to long‑term income‑oriented investors. Meanwhile, Simon Property’s mall‑centric portfolio and valuation compression leave it less advantaged in this specific comparison. #RealtyIncome #REITs #Investing #GrahamPE #SlimScan #GrowthStocks #CANSLIM