CNBC Television
Mad Money 11/04/25 | Audio Only
11/5/2025, 12:51:30 AM
Economic Summary
- Despite broad concerns about a weak consumer, Simon Property Group (SPG) reported stronger fundamentals: FFO of $3.25 beat expectations, domestic NOI rose 5.1%, and occupancy climbed to 96.4%, suggesting high-end mall demand remains resilient.
- Management said shopper traffic and retail sales accelerated sequentially, helped by a successful back-to-school season, and leasing remained robust with over 1,000 leases signed (~4 million sq ft), implying continued tenant demand.
- Tariffs are expected to impact retailers eventually, but Simon has not yet seen meaningful effects; this highlights a lag between macro policy moves and real estate/retailer performance.
- Higher-end mall properties are outperforming lower-end ones (e.g., The Mills 99.4% occupancy), indicating a bifurcated retail landscape where premium assets show strength while certain regional/strip assets underperform.
Bullish
- Simon Property Group delivered strong FFO, rising occupancy, and raised guidance.
- SPG offers a high 8.9% yield and trades under 15x midpoint FFO, suggesting value.
- Taubman acquisition enhances portfolio quality and unlocks growth opportunities.
- AGCO could benefit from renewed Chinese purchases of U.S. soybeans.
Bearish
- Widespread reports say consumer-facing sectors (restaurants, retailers, cruises) are weakening and could pressure revenues.
- Tariffs enacted by the president may eventually raise costs for retailers and hurt mall tenants.
- Certain Simon properties (e.g., Las Vegas and border-adjacent malls) show localized softness.
Bullish tickers
SPGOAGCOTAUBMAN
Bearish tickers
EQUINOX
SPG
Bullish
Beat FFO expectations, raised guidance, higher occupancy, strong leasing activity, trades under 15x FFO with 8.9% yield.
Bearish
Tariffs could eventually hurt tenants; some isolated portfolio weakness (Las Vegas, border properties).
O
2 price targets
6068
Bullish
Pays monthly dividend; viewed as oversold by host and recommended as a buy for income.
Bearish
Recent slight miss and a negative note caused downside; daily volume spikes noted.
AGCO
Bullish
Could benefit from renewed Chinese purchases of American soybeans, supporting equipment demand.
EQUINOX
Bearish
Described as expensive; caller advised selling and host agrees it's expensive.
TAUBMAN
Bullish
Acquiring remaining stake improves portfolio quality and provides growth/value creation opportunities.
Bearish
Deal was contested during COVID and required price adjustments, implying integration risk.
People mentioned
David SimonBrian McDadeEli SimonJim CramerMarkDiane