Earnings Preview: What to Expect From Simon Property's Report

Simon Property Group, Inc. (SPG), headquartered in Indianapolis, Indiana, is a real estate company with a market cap of $57.05 billion. It specializes in premier shopping, dining, and entertainment destinations. The company will release its Q3 earnings report after the market closes on Tuesday, Nov. 5.

Ahead of the event, analysts expect SPG to report a profit of $3.01 per share, down 5.9% from $3.20 in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on one other occasion.

Its adjusted earnings of $2.90 per share for the last quarter missed the consensus estimate by 1%. Higher interest expenses impacted Simon Property Group’s Q2 performance, leading to a slight miss on FFO per share. 

For fiscal 2024, analysts expect SPG to report EPS of $12.85, up 2.7% from $12.51 in fiscal 2023.  

SPG stock is up 22.2% YTD, slightly underperforming the broader S&P 500 Index's ($SPX) 22.5% gains. However, the stock has outperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 10.9% gain over the same time frame.

Simon Property’s price performance has been mixed. Despite missing Q2 funds from operations (FFO) estimates on Aug. 5, the stock surged 5.1% the next day, driven by stronger-than-anticipated $1.5 billion revenue. Its portfolio of premium tenants and luxury retailers fueled demand, while an upward revision of its annual FFO forecast added momentum, signaling resilience despite the challenges.

The consensus opinion on SPG stock is moderately optimistic, with an overall “Moderate Buy” rating. Of 17 analysts covering the stock, six advise a “Strong Buy” rating, and 11 indicate a “Hold.” 

Although SPG currently trades at a premium to the average analyst price target of $167.35, the Street-high target price of $200 suggests the stock could rally as much as 14.7%.

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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.