Street View: Simon Property eyes meaty returns on leasing demand, Taubman deal

Simon Property

04/11/2025 12:57

** Simon Property Group SPG.N raised its full-year forecast for real estate funds from operations on Monday, citing strong leasing demand across its shopping centers

** Co acquires remaining 12% stake in Taubman Realty Group, a REIT focused on luxury shopping malls

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** Morningstar (fair value: $184) says the deal should improve efficiency and help lift returns on the deal to 8% by 2027 when cost savings kick in

** Scotiabank ("sector perform", PT: $173) says Taubman deal is positive with high-quality assets expected to grow income faster than SPG’s average, and boost earnings in 2026 with stronger returns by 2027

** J.P. Morgan ("neutral") says recent real estate deals suggest co likely to stay active using available capital, which could support future growth and stock upside

** Piper Sandler ("overweight", PT: $210) believes the Taubman deal will add only a little to 2026 results but make a bigger impact in 2027

(Reporting by Kanishka Ajmera in Bengaluru)

((Kanishka.Ajmera@thomsonreuters.com))