SPG Stock Forecast & Price Target

Simon Property Group's robust portfolio, consisting of 254 properties, achieved an impressive average of $736 in sales per square foot over the trailing 12 months, reflecting strong retail performance. The company's occupancy rate increased by 40 basis points year-over-year to 96.0%, coupled with a 1.3% rise in base minimum rent per square foot to $58.70, indicating positive rental trends. Despite potential challenges from retail bankruptcies and store closures, management noted persistent consumer demand and leasing leverage at high-productivity centers, reinforcing a positive outlook for the company's financial health.

The financial outlook for Simon Property Group appears negative due to notable weakness in tourist locations, which have not performed up to historical standards, likely influenced by challenges in border transit. Although the company has raised the low end of its 2025 Real Estate Funds From Operations (FFO) guidance, this may not offset the concerns related to declining foot traffic and sales in key areas. Additionally, the concentration of Simon's portfolio in traditional retail formats leaves it vulnerable to broader shifts in consumer behavior and retail trends.