Simon Property Group price target lowered to $170 from $185 at Citi

Citi lowered its price target on Simon Property Group (NYSE:SPG) to $170 from $185 while maintaining a Neutral rating on the stock, according to a research note released Monday. According to InvestingPro data, analysts’ targets for SPG range from $159 to $220, with the stock currently trading near $158.

The firm reduced its 2025 funds from operations (FFO) estimate to $12.21 from $12.52, reflecting first-quarter results that included one-time and investment losses of 28 cents per share. Citi’s 2025 core FFO forecast was also trimmed to $12.49 from $12.52, primarily due to lower net operating income projections. Despite these adjustments, InvestingPro analysis shows SPG maintains strong financial health with an overall score of ’GOOD’ and has maintained dividend payments for 32 consecutive years.

The new price target represents approximately 14 times the estimated 2025 core FFO, down from the previous multiple of about 15 times. Citi justified this multiple compression based on uncertainty surrounding tariffs and tenant credit conditions.

Simon Property Group, one of the largest mall operators in the United States, has faced challenges as retailers navigate changing consumer behaviors and economic pressures. The company’s first-quarter results prompted the analyst to reassess growth expectations.

The price target adjustment follows Simon’s recent quarterly performance and reflects a more cautious outlook on the retail real estate sector amid broader economic concerns.

In other recent news, Simon Property Group has announced several significant developments. The company reported its first-quarter 2025 financial results, revealing funds from operations (FFO) per share of $2.67, which was below Stifel’s estimate by $0.17 and $0.24 below the consensus of other analysts. Despite this, Simon Property Group’s Real Estate FFO per share was $2.95, surpassing the average analyst prediction of $2.90 for the quarter. Stifel responded by raising its price target for Simon Property Group to $180, maintaining a Buy rating. Similarly, Jefferies adjusted its price target to $178, also holding a Buy recommendation, while revising its earnings forecasts for the company.

In another development, Simon Property Group completed its redomestication from Delaware to Indiana, a move approved by shareholders. This transition does not affect the company’s headquarters, business operations, or management. The redomestication was part of a broader corporate reorganization, including the conversion of shares and interests to align with Indiana’s legal framework. Additionally, Simon Property Group’s involvement in Catalyst Brands, formed by the merger of JCPenney and SPARC Group, remains a focal point, with management expecting cost savings and synergies despite restructuring expenses. These recent events reflect ongoing strategic adjustments and financial assessments influencing Simon Property Group’s outlook.

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