What to Expect From Simon Property's Next Quarterly Earnings Report

Simon Property Group, Inc_ logo and commercial building-by Below the Sky via Shutterstock

Indianapolis, Indiana-based Simon Property Group, Inc. (SPG) is a self-administered and self-managed real estate investment trust (REIT). Valued at $53 billion by market cap, the company owns, develops, and manages retail real estate properties including regional malls, outlet centers, community/lifestyle centers, and international properties. The real estate giant is expected to announce its fiscal second-quarter earnings for 2025 after the market closes on Monday, Aug. 4.

Ahead of the event, analysts expect SPG to report an FFO of $3.04 per share on a diluted basis, up 4.8% from $2.90 per share in the year-ago quarter. The company surpassed the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.

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For the full year, analysts expect SPG to report FFO of $12.46 per share, down 4.1% from $12.99 per share in fiscal 2024. However, its FFO is expected to rise 3.1% year over year to $12.85 per share in fiscal 2026.

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SPG stock has underperformed the S&P 500 Index’s ($SPX) 10.9% gains over the past 52 weeks, with shares up 6.6% during this period. However, it outperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 2.9% gains over the same time frame.

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SPG's underperformance is due to increased online shopping, which has impacted mall traffic. The rebound in mall visits post-pandemic may not fully offset this ongoing trend. Furthermore, despite recent rate cuts, high interest rates continue to pose a challenge for Simon Property's ability to acquire new real estate assets.

On May 12, SPG shares closed up more than 5% after reporting its Q1 results. Its FFO of $2.95 per share exceeded Wall Street's expectations of $2.91 per share. The company’s revenue was $1.47 billion, falling short of Wall Street forecasts of $1.48 billion. SPG expects full-year FFO in the range of $12.40 to $12.65 per share.

Analysts’ consensus opinion on SPG stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 18 analysts covering the stock, eight advise a “Strong Buy” rating, and 10 give a “Hold.” SPG’s average analyst price target is $181.61, indicating a potential upside of 13.6% from the current levels.

On the date of publication, Neha Panjwani 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. This article was originally published on Barchart.com