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On Thursday, Stifel analysts reiterated a Buy rating for Simon Property Group (NYSE:SPG) stock, maintaining a price target of $180.00. Currently trading at $161.62, the stock has received a consensus "Buy" recommendation from analysts, with price targets ranging from $159 to $220. According to InvestingPro data, Simon Property Group has demonstrated strong financial health with an overall "GOOD" rating. The reaffirmation follows Simon Property Group’s first-quarter 2025 results, where the company upheld its 2025 Real Estate Funds From Operations (FFO) guidance of $12.40 to $12.65 per share, aligning closely with consensus expectations of $12.61. The company has maintained its position as a prominent player in the Retail REITs industry, with an impressive track record of maintaining dividend payments for 32 consecutive years and currently offering a 5.2% dividend yield.
Simon Property Group’s guidance includes assumptions of property Net Operating Income (NOI) growth of at least 3%, balanced by an increased net interest expense of $0.25 to $0.30. These projections remain unchanged from previous estimates. The company is not currently providing guidance for Operating Partnership Income (OPI) due to its involvement in Catalyst Brands, a new portfolio formed by the merger of JCPenney and SPARC Group, in which Simon Property Group holds a stake.
Management anticipates that the merger will result in significant cost savings and synergies, despite potential restructuring expenses. The company noted that results are expected to align with the midpoint of its guidance range due to ongoing macroeconomic uncertainties.
Simon Property Group’s management expressed cautious optimism, acknowledging that while conditions have improved incrementally, there is not yet enough confidence to reach the upper end of the projected range.
In other recent news, Simon Property Group announced the completion of its redomestication from Delaware to Indiana, effective May 15, 2025. This change, approved by shareholders, does not impact the company’s headquarters, operations, or management. Additionally, all nominated directors were elected during the annual meeting, and Ernst & Young LLP was ratified as the independent auditor for 2025. In financial updates, Stifel raised its price target for Simon Property Group to $180, maintaining a Buy rating, while Evercore ISI increased its target to $186, keeping an Outperform rating. These adjustments follow Simon’s first-quarter results, where funds from operations (FFO) per share was reported at $2.67, slightly below analyst estimates. However, the Real Estate FFO per share of $2.95 surpassed expectations, indicating strong underlying performance. Truist Securities, meanwhile, held its rating at Hold with a $168 price target, noting the company’s robust balance sheet and asset quality despite macroeconomic challenges. The recent tariff reductions by China are seen as a potential positive for the retail sector, which could benefit Simon Property Group.
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