Simon acquires remaining 12% stake in Taubman Realty Group

INDIANAPOLIS - Simon Property Group (NYSE:SPG) announced Monday that it has completed the acquisition of the remaining 12% interest in The Taubman Realty Group Limited Partnership (TRG) that it did not already own. The $66.3 billion market cap retail REIT continues its expansion strategy in the premium mall space.

The transaction was executed in exchange for 5.06 million limited partnership units in Simon Property Group L.P., according to a company press release.

"We are pleased to finalize this transaction, which will be accretive to Simon," said David Simon, Chairman, Chief Executive Officer and President of the real estate investment trust.

The acquisition concludes a five-year partnership between Simon and Taubman. Robert Taubman, Chairman and CEO of Taubman Realty Group, noted that he and his brother Billy "look forward to being significant Simon shareholders for many years to come."

Simon Property Group, an S&P 100 company, owns shopping, dining, entertainment and mixed-use destinations across North America, Europe and Asia. The company had previously acquired the majority stake in TRG and has now consolidated full ownership of the entity.

The transaction aligns with Simon's stated strategy of owning high-quality retail assets. The company indicated that full ownership of TRG positions it to pursue new growth opportunities and increase net operating income.

Robert Taubman acknowledged the contributions of the TRG team over the company's 75-year history since its founding by his father Alfred.

In other recent news, Simon Property Group has been upgraded to an 'A' rating by S&P Global Ratings, thanks to its strong operating performance and solid sector fundamentals. The company reported a 3.8% year-over-year increase in domestic property net operating income for the first half of the year, ending June 30, 2025, and improved its occupancy rate to 96.0%. Meanwhile, Eli Simon has been promoted to Chief Operating Officer, where he will collaborate closely with David Simon, the company's Chairman, CEO, and President. In terms of analyst activity, Evercore ISI has downgraded Simon Property Group from Outperform to In Line, despite raising its price target to $187.00, citing limited potential upside. Piper Sandler has reiterated its Overweight rating with a $200.00 price target, highlighting the company's leadership transition strategy. Stifel has also downgraded the stock from Buy to Hold, maintaining a price target of $179.00 due to valuation concerns, although it noted no change in the company's fundamentals. These developments reflect a range of perspectives on Simon Property Group's current market position.

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