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Simon Property Group (SPG) Price Target Raised by Scotiabank

Simon Property Group (NYSE: SPG) Price Target Raised as Scotiabank Maintains Sector Perform Rating

  • Scotiabank raised its price target for Simon Property Group from $220 to $222 but maintained its Sector Perform rating, indicating a neutral outlook.
  • Second-quarter 2026 revenue increased 19.5% year over year to $1.79 billion, while occupancy at U.S. malls and Premium Outlets remained at 96.0%.
  • Real Estate FFO increased 7.9% to $3.29 per diluted share, prompting Simon Property Group to raise its full-year guidance.

Simon Property Group (NYSE: SPG) is a real estate investment trust that owns and manages shopping, dining, entertainment, and mixed-use destinations. It is one of the largest operators of malls and premium outlets in the United States. 

On August 20, 2026, Scotiabank analyst Greg McGinniss raised his price target for Simon Property Group to $222 from $220 while maintaining a Sector Perform rating. With the stock trading at $221.66 at the time, the revised target represented potential upside of only approximately 0.15%. A Sector Perform rating generally means that the analyst expects the stock to perform roughly in line with comparable companies in its sector. 

Simon Property Group reported strong second-quarter 2026 operating results. Total revenue increased 19.5% year over year to $1.79 billion from $1.50 billion. Management attributed the company’s broader performance to leasing demand, increased traffic, retailer sales growth, and contributions from acquisitions completed during the previous year.

Occupancy at the company’s U.S. malls and Premium Outlets was 96.0% as of June 30, 2026, unchanged from the previous year. Base minimum rent increased 6.3% to $62.42 per square foot, while reported retailer sales increased 13.9% to $838 per square foot for the trailing 12 months.

Simon reported Real Estate FFO of $1.25 billion, or $3.29 per diluted share, compared with $1.15 billion, or $3.05 per share, in the previous year. This represented growth of 7.9% per share.

However, total FFO, which includes the company’s other platform investments, was $1.19 billion, or $3.12 per diluted share. That compared with $1.19 billion, or $3.15 per share, one year earlier. 

FFO is a non-GAAP performance measure commonly used for REITs. It generally adjusts net income for real estate depreciation and certain gains or losses from property transactions. 

Following the strong quarter, Simon raised its full-year 2026 Real Estate FFO guidance to between $13.20 and $13.30 per diluted share, compared with its previous range of $13.10 to $13.25. Simon also reported approximately $9.3 billion in liquidity as of June 30, including $1.7 billion in cash on hand and its share of joint-venture cash. 

The company declared a quarterly dividend of $2.25 per common share, an increase of 4.7% from the previous year. At a share price of $221.66, the annualized dividend of $9.00 represented a yield of approximately 4.06%, which can reasonably be rounded to 4.1%. Dividend yields fluctuate as share prices change.

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