Update shared on12 Sep 2025
Fair value Increased 0.27%Simon Property Group’s consensus price target saw a modest upward revision to $184.55 as analysts updated FY25/FY26 FFO estimates following strong Q2 results and sector-wide REIT outperformance, while some valuation-based downgrades reflect caution amidst macro risks.
Analyst Commentary
- Price target increases by bullish analysts reflect updated FY25 and FY26 Funds From Operations (FFO) estimates following solid Q2 results.
- Sector-wide price target adjustments are driven by positive Q2 earnings in the U.S. Real Estate & REITs space.
- Some bearish analysts downgraded based solely on valuation concerns, as shares traded above price targets aligned with implied cap rates, rather than on operational fundamentals.
- Adjustments to FFO estimates for upcoming years indicate mixed expectations for near-term growth and medium-term moderation.
- There is an emphasis on strong balance sheets and improving free cash flow profiles, with some caution regarding macro risks such as tariffs and a slowing consumer environment.
What's in the News
- Simon launched a partnership with Humana to implement health-focused programs, including the Humana Walking Club, at 21 centers, targeting older adults with monthly events and customized marketing initiatives.
- No shares were repurchased during the recent quarter; buyback activity remains at zero.
- Quarterly dividend increased 4.9% year-over-year to $2.15 per share.
- Issued full-year earnings guidance, expecting net income per diluted share of $6.63 to $6.83.
- Acquired full ownership and management of Brickell City Centre's retail and parking, expanding presence in premium mixed-use Miami property.
Valuation Changes
Summary of Valuation Changes for Simon Property Group
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $184.05 to $184.55.
- The Future P/E for Simon Property Group has significantly fallen from 36.42x to 31.68x.
- The Consensus Revenue Growth forecasts for Simon Property Group has risen from 0.7% per annum to 0.8% per annum.
Disclaimer
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