The Zacks Analyst Blog Highlights Simon Property, Realty Income and The Macerich

For Immediate Release

Chicago, IL – October 31, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Simon Property Group, Inc. SPG, Realty Income Corp. O and The Macerich Co. MAC.

Here are highlights from Thursday’s Analyst Blog:

3 Retail REITs to Watch for Potential Upside This Earnings Season

As the third-quarter earnings season gets rolling, profits from the ones already reported are starting to draw investor interest. However, instead of rushing into stocks that have already surged on solid reports, it may be wiser to look for companies still positioned to surprise on the upside. Earnings beats often act as catalysts, lifting confidence and driving shares higher.

This is likely to be reflected in the earnings releases of Simon Property Group, Inc., Realty Income Corp. and The Macerich Co.

REITs play a vital role in both the physical and digital sides of the economy and often show resilience even in challenging markets. Taking a closer look at the sector’s fundamentals can help investors spot areas of steady performance and long-term growth potential. Here’s a look at where the industry’s strengths lie and how it could still present value amid broader market uncertainty.

Particularly, the U.S. retail-property market showed signs of stabilization in the third quarter of 2025, with growth in demand. According to CBRE data, the overall availability rate held steady at 4.9 % as new store openings and expansions offset closures and consolidations. Net absorption witnessed its first positive reading of the year, with about 1.8 million sq ft, though year-to-date absorption remains negative due to earlier store closures and consolidations.

Construction completions rose to 5.1 million sq ft in the quarter (13.8 million sq ft year to date). Most projects were underway before higher financing costs, and speculative ground-up starts remain limited, with developers favoring well-located, necessity-based retail. Asking rents edged up 0.4 % sequentially and 1.8 % year over year to average approximately $24.92 per sq ft, as owners emphasize occupancy and tenant retention in a discerning retail-tenant environment.

The Zacks Methodology

Picking the right stock could be difficult unless one knows the proper method. To make the task simple, we rely on the Zacks methodology, combining a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP.

Our proprietary methodology, Earnings ESP, shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Research shows that for stocks with this combination of the Zacks Rank and ESP, chances of a positive earnings surprise are as high as 70%.

Here are three Retail REITs that have the right combination of elements to deliver positive surprises this earnings season.

Simon Property Group currently carries a Zacks Rank of 3 and has an Earnings ESP of +1.08% for the quarter under review. Over the trailing four quarters, the company surpassed the Zacks Consensus Estimate on three occasions and missed on the other, the average beat being 1.15%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Simon Property Group, Inc. price-eps-surprise | Simon Property Group, Inc. Quote

Simon Property is expected to have benefited from its collection of high-quality assets, both domestically and abroad. The company’s strategic focus on omnichannel integration and partnerships with leading retailers is expected to have driven meaningful gains. Additionally, Simon Property’s commitment to mixed-use developments, an increasingly popular concept combining residential, office and leisure spaces, is likely to have enhanced growth opportunities in key markets. Also, the retail REIT behemoth is expected to continue enjoying balance sheet strength. (Read more: Here's What to Expect From Simon Property This Earnings Season)

Simon Property is slated to report third-quarter 2025 results on Nov. 3, after market close.

The Zacks Consensus Estimate for quarterly revenues is presently pegged at $1.53 billion, which indicates an increase of 3.5% year over year. The consensus mark for the quarterly funds from operations (FFO) per share is pegged at $3.09, which calls for 8.8% year-over-year growth.

Realty Income currently carries a Zacks Rank of 3 and has an Earnings ESP of +0.37% for the quarter under review. Over the trailing four quarters, the company’s adjusted funds from operations (AFFO) per share met the Zacks Consensus Estimate on two occasions for as many misses.

Realty Income Corporation price-eps-surprise | Realty Income Corporation Quote
Realty Income is expected to deliver steady results in the third quarter, supported by its high-quality, diversified portfolio and resilient tenant base. With a 98.6% occupancy rate as of June 30, 2025 and a focus on tenants with non-discretionary, low price point and service-oriented sectors, the REIT is likely to have maintained stable earnings. Strategic expansions, along with solid financials and strong credit ratings, may have driven continued growth and revenue momentum in the quarter.

Realty Income is scheduled to release third-quarter earnings on Nov. 3, after market close.

The Zacks Consensus Estimate for quarterly revenues is pegged at $1.42 billion, which suggests a 6.61% increase from the year-ago quarter’s reported figure. While the consensus mark for third-quarter 2025 AFFO per share has remained unrevised at $1.07 over the past two months, it implies 1.90% growth year over year.

Macerich holds a Zacks Rank #3 and an Earnings ESP of +1.08 % at present. Over the trailing four quarters, MAC’s FFO per share surpassed the Zacks Consensus Estimate once, met once and missed in the remaining two periods.

Macerich Company (The) price-eps-surprise | Macerich Company (The) Quote

Macerich is expected to have gained from its portfolio of premium shopping centers in the United States. With a decent leasing pipeline, the company is likely to have continued witnessing healthy leasing activity at its properties in the quarters ahead, driving occupancy. Its focus on omnichannel retailing is likely to have supported its growth. A shift toward re-use and mixed-use properties through the recapturing and repositioning of anchor tenants remains a key emphasis, while bringing brands to new markets at its mall is likely to have continued to attract shoppers.

Macerich is scheduled to report its quarterly figures on Nov. 4, after market close.

The Zacks Consensus Estimate for third-quarter total revenues is pegged at $257.01 million, calling for a 16.7% increase year over year. The consensus mark for the quarterly FFO per share stands at 36 cents.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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