Simon Property Group shares slip, analysts cite 200-basis-point debt headwind

Simon Property Group (SPG) shares declined following downgrades from Deutsche Bank and Wolfe Research. Analysts noted the retail REIT’s valuation reached a peak after a significant stock rally.

Refinancing maturing debt in a high-interest-rate environment remains the primary concern for the company. Analysts project these costs will create a 200-basis-point headwind for future funds from operations (FFO) growth.

The downgrades reflect a broader reassessment of long-term earnings potential for REITs due to rising capital costs. Simon Property Group maintains strong operational performance, including high occupancy rates.