SPG Stock Forecast & Price Target

Simon Property Group (SPG) has demonstrated solid consumer strength, evidenced by a 1.5% increase in traffic and sustained retail demand, despite broader economic concerns. The company's occupancy rate has improved by 40 basis points year-over-year to reach 96.0%, complemented by a 1.3% year-over-year increase in base minimum rent per square foot, which now stands at $58.70. With a diverse portfolio consisting of 254 properties and strong performance metrics, SPG maintains a positive outlook, particularly due to increased demand and leasing leverage at high-productivity centers.

Simon Property Group's financial outlook reflects challenges primarily tied to the performance of its tourist location properties, which have shown weakness compared to historical results, potentially due to restrictions on border transit. Although the company has raised the low end of its 2025 Real Estate Funds from Operations (FFO) guidance, the ongoing issues with tourist foot traffic may inhibit broader recovery and growth. This combination of soft performance in key revenue-generating areas and cautious adjustments in financial projections contributes to a negative sentiment regarding the stock's near-term prospects.