Simon Property Group: A Strong Buy on Robust Portfolio Performance and Promising FFO Growth

Goldman Sachs analyst Caitlin Burrows has maintained their bullish stance on SPG stock, giving a Buy rating on May 8.

Caitlin Burrows has given his Buy rating due to a combination of factors, including the robust performance of Simon Property Group’s core real estate portfolio. The firm’s solid foundation is evidenced by healthy leasing volume and pricing, which signal a strong business model and favorable market conditions. Moreover, the company’s successful efforts in monetizing assets, particularly its ABG stake, further cement its potential for financial growth and stability.
Another key element influencing the Buy rating is the forecasted FFO (funds from operations) growth, which is expected to rise by 4% in 2024 and 3% in 2025, showing a steady trajectory of earnings before the impact of the OPI (Operating Partnership Units) is considered. While the current estimates do not take into account additional OPI monetizations, the potential FFO accretion from such transactions could significantly boost earnings. This potential for enhanced value creation is a compelling reason for the positive outlook on Simon Property Group’s stock.

According to TipRanks, Burrows is an analyst with an average return of -0.9% and a 48.21% success rate. Burrows covers the Real Estate sector, focusing on stocks such as Phillips Edison & Company, Kilroy Realty, and Public Storage.

In another report released on May 8, Bank of America Securities also reiterated a Buy rating on the stock with a $178.00 price target.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

Simon Property (SPG) Company Description:

Simon Property Group, Inc. is a real estate investment trust, which is engaged in owning, acquiring and leasing of dining, shopping, entertainment and mixed-use destinations. Its real estate portfolio consists of Premium Outlets, shopping malls and The Mills and International Properties across North America, Europe and Asia.