Headquartered in Indianapolis, Indiana, Simon Property Group, Inc. (SPG) is a real estate company specializing in premier shopping, dining, entertainment, and mixed-use destinations. It is renowned for its extensive portfolio of high-quality properties; Simon Property Group has a market cap of $54.3 billion and is celebrated for its innovation, operational excellence, and commitment to providing exceptional consumer experiences.
Shares of the REIT have outperformed the broader market over the past 52 weeks. SPG has soared 49.1% during this period, contrasting with the S&P 500 Index's ($SPX) robust rally of 27%. However, in 2024, SPG shares surged 16.7%, lagging behind SPX's 18.1% gain on a YTD basis.
Zooming in further, SPG has also surpassed the US Real Estate iShares ETF (IYR), which has returned 18% over the past 52 weeks and gained 8.5% on a YTD basis.
On Aug. 5, Simon Property announced its Q2 earnings report, and its stock popped 5.1% in the subsequent trading session. It reported funds from operations (FFO) of $2.90 per share, missing Wall Street's expectation of $2.93. However, revenue of $1.46 billion exceeded forecasts. The company expects full-year funds from operations to be between $12.80 and $12.90 per share.
For the current fiscal year, ending in December, analysts expect Simon Property's FFO to grow 2.7% year over year to $12.85 per share. The company's earnings surprise history is mixed. It topped the consensus estimates in three of the last four quarters, missing on one occasion.
The consensus rating among the 17 analysts covering the stock is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings and 10 “Holds.”
This configuration has remained steady over the past three months.
On Aug. 19, Mizuho Financial Group, Inc. (MFG) raised its price target on Simon Property Group to $158 from $154 while maintaining a “Neutral” rating on the shares.
While the company currently trades over its mean price target of $159.41, the Street-high price target of $190 implies a modest potential upside of 14.1% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
