Street View: SPG gains ground on leasing strength, strategic acquisitions

Simon Property

05/08/2025 13:29

** Simon Property Group SPG.N reported an increase in its Q2 real estate funds from operations (FFO) on Monday, driven by strong leasing demand across its portfolio of shopping centers

** Median PT of 22 brokerages covering the stock is $183 - according to data compiled by LSEG

OUTLOOK RAISED, EYEBROWS TOO

** Morgan Stanley ("equal weight", PT: $170) expects a stock boost from the FFO beat-and-raise, backed by strong leasing and potential growth via acquisitions or developments

** Mizuho ("neutral", PT: $169) believes SPG leveraged its large check size and relationship with Swire to bypass an auction and secure the Brickell acquisition at a favorable price, showcasing its strategic edge in off-market deals

** Scotiabank ("sector perform", PT: $163) views co's slight raise in Funds From Operations per Share forecast and stronger NOI growth as encouraging, while ongoing softness in border assets and flat tenant sales temper the overall tone

** Morningstar (fairvalue: $174) sees co as slightly undervalued, citing pressure from high interest rates and tariff-related cost concerns, but remain optimistic due to its strong leasing activity and strategic retail investments

 (Reporting by Rashika Singh in Bengaluru)

 ((rashika.singh@thomsonreuters.com))