It has been about a month since the last earnings report for Simon Property (SPG) . Shares have added about 5.7% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Simon Property due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Simon Property Group, Inc. before we dive into how investors and anal ...

Company Performance - Macerich reported quarterly funds from operations (FFO) of $0.32 per share, missing the Zacks Consensus Estimate of $0.34 per share, and down from $0.44 per share a year ago, representing an FFO surprise of -5.88% [1] - The company posted revenues of $249.79 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.35%, compared to year-ago revenues of $215.52 million [2] - Over the last four quarters, Macerich has surpassed consensus revenue estimates four times, but has only exceeded consensus FFO estimates once [2] Stock Performance - Macerich shares have declined approximately 16.2% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The current consensus FFO estimate for the coming quarter is $0.36 on revenues of $250.05 million, and for the current fiscal year, it is $1.48 on revenues of $1.02 billion [7] Industry Outlook - The REIT and Equity Trust - Retail industry, to which Macerich belongs, is currently in the top 30% of over 250 Zacks industries, indicating a favorable outlook [8]

Core Insights - The Zacks REIT and Equity Trust - Retail industry is well-positioned to leverage favorable market conditions, with strong consumer spending and limited new development supporting healthy fundamentals [1] - The industry is experiencing a rebound driven by renewed consumer interest in in-store shopping, despite facing challenges from e-commerce expansion and macroeconomic pressures [2][5] Industry Overview - The industry comprises REITs that own, develop, manage, and lease various retail properties, including regional malls and grocery-anchored shopping venues [2] - Key demand drivers include geographic location and demographics, with a positive shift in the retail landscape noted [2] Future Trends - Experiential retail and omnichannel integration are revitalizing the sector, with physical stores transforming into immersive destinations that enhance customer engagement [3] - Solid leasing demand from consumer service providers and cross-border entrants is diversifying the tenant base and driving long-term occupancy stability [3] Supply and Demand Dynamics - Retail REITs benefit from a constrained supply pipeline, with limited new construction due to high building costs and labor shortages, leading to historically tight national vacancy rates [4] - Many REITs are redeveloping underperforming assets and adding non-traditional tenants, enhancing portfolio durability [4] Macroeconomic Challenges - High interest rates, inflation, and tariff changes are pressuring retailers, leading to delayed leasing decisions and increased store closures [5] - E-commerce penetration is dampening demand for traditional retail space, particularly in commodity-driven segments [5] Industry Performance - The Zacks REIT and Equity Trust - Retail industry has underperformed the broader Zacks Finance sector and the S&P 500 over the past year, declining 5.5% compared to the S&P 500's rise of 19.4% [10] - The industry is currently trading at a forward 12-month price-to-FFO of 14.62X, below the S&P 500's forward P/E of 22.54X [13] Stock Recommendations - **Brixmor Property Group Inc. (BRX)** focuses on open-air shopping centers with a balanced tenant base, currently has a Zacks Rank 2, and its FFO per share estimate has been revised upward to $2.23, indicating a 4.7% year-over-year increase [17][19] - **Phillips Edison & Company, Inc. (PECO)** specializes in grocery-anchored shopping centers, managing 327 centers with a Zacks Rank 2, and its FFO per share estimate for 2025 has been revised to $2.58, reflecting a bullish outlook [21][24] - **Urban Edge Properties (UE)** operates in densely populated regions with a focus on essential retailers, holding a Zacks Rank 2, and its FFO per share estimate has been raised to $1.40, indicating a 3.7% year-over-year increase [26][28]

Realty Income Corp. (O) came out with quarterly funds from operations (FFO) of $1.05 per share, missing the Zacks Consensus Estimate of $1.06 per share. This compares to FFO of $1.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of -0.94%. A quarter ago, it was expected that this real estate investment trust would post FFO of $1.06 per share when it actually produced FFO of $1.06, delivering no surprise. Over the last four quarters ...

Core Viewpoint - Realty Income Corporation (O) is expected to report its second-quarter 2025 results on August 6, with adjusted funds from operations (AFFO) estimated at $1.06 per share and revenues at $1.40 billion, indicating a year-over-year revenue increase of 4.2% but no growth in AFFO per share [1][2][7]. Financial Performance - The Zacks Consensus Estimate for second-quarter 2025 AFFO per share has remained unchanged at $1.06, suggesting no growth year over year [2]. - The estimated revenues for the current year are projected at $5.61 billion, reflecting a 6.5% increase year over year [2]. - Over the past four quarters, Realty Income's AFFO per share has surpassed estimates once, met them twice, and missed once [4]. Operational Insights - Realty Income maintains a high occupancy rate of 98.5%, which is expected to remain above 98% for the full year, supporting stable cash flow and earnings [9]. - The company's diversified portfolio includes essential-service tenants, which ensures dependable rental income [8][10]. - Strategic expansions into sectors like data centers and gaming, along with European market entry, are anticipated to contribute to revenue growth [10]. Strategic Initiatives - Realty Income's investments in Encore Boston Harbor and Bellagio Las Vegas, along with a partnership with Digital Realty, highlight its focus on long-term growth and diversification [10]. - The company targets $4 billion in investments for 2025, indicating a proactive approach to portfolio enhancement [10]. Financial Health - As of March 31, 2025, Realty Income holds strong investment-grade credit ratings (A3 from Moody's and A- from S&P), indicating a solid financial position [11]. - The company has a manageable net debt of approximately $27.64 billion and a well-structured debt maturity schedule, which enhances financial flexibility [11][13]. Market Performance - Realty Income's shares have increased by 7.6% year-to-date, closing at $57.45, while the Zacks REIT and Equity Trust - Retail industry has declined by 10.0% [14]. - The stock is trading at a forward 12-month price-to-FFO of 13.19X, which is below the industry average of 14.58X, suggesting a potential valuation opportunity [16]. Investment Appeal - Realty Income offers a blend of income stability and long-term growth potential, supported by its diversified portfolio and essential-service tenant base [17]. - The company has a dividend yield of 5.62%, making it attractive for income-focused investors [17].

Tanger (SKT) came out with quarterly funds from operations (FFO) of $0.58 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to FFO of $0.53 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of +3.57%. A quarter ago, it was expected that this factory outlet mall operator would post FFO of $0.53 per share when it actually produced FFO of $0.53, delivering no surprise. Over the last four quarters, the compa ...

Company Performance - Simon Property (SPG) reported quarterly funds from operations (FFO) of $3.05 per share, exceeding the Zacks Consensus Estimate of $3.04 per share, and up from $2.90 per share a year ago, representing an FFO surprise of +0.33% [1] - The company posted revenues of $1.5 billion for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.55%, compared to $1.46 billion in the same quarter last year [2] - Over the last four quarters, Simon Property has surpassed consensus FFO estimates three times and topped consensus revenue estimates two times [2] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $3.11 on revenues of $1.52 billion, and for the current fiscal year, it is $12.45 on revenues of $6.13 billion [7] - The estimate revisions trend for Simon Property was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The REIT and Equity Trust - Retail industry, to which Simon Property belongs, is currently in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5]

Over the last four quarters, the company has surpassed consensus FFO estimates two times. Agree Realty, which belongs to the Zacks REIT and Equity Trust - Retail industry, posted revenues of $175.53 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.05%. This compares to year-ago revenues of $152.57 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the rece ...

Kimco Realty (KIM) came out with quarterly funds from operations (FFO) of $0.44 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to FFO of $0.41 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of +2.33%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.42 per share when it actually produced FFO of $0.44, delivering a surprise of +4.76%. Over the last four quar ...

EPR Properties (EPR) came out with quarterly funds from operations (FFO) of $1.24 per share, missing the Zacks Consensus Estimate of $1.25 per share. This compares to FFO of $1.2 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -0.80%. A quarter ago, it was expected that this real estate investment trust would post FFO of $1.19 per share when it actually produced FFO of $1.21, delivering a surprise of +1.68%.Over the last four quart ...