Jim Cramer on Simon Property (SPG) and Federal Realty (FRT): “Both of Them Are Excellent”
Jim Cramer recommended Simon Property Group (SPG) and Federal Realty (FRT) on Mad Money, praising their yields and growth prospects. SPG reported a 7.9% YoY increase in FFO per share, 96% occupancy, and raised 2026 guidance to $13.20-$13.30. FRT saw a 6.8% YoY rise in core FFO, 93.8% occupancy, and increased 2026 guidance to $7.48-$7.56. Both face risks from higher interest rates.
How this was made
The 30-second read
Why it matters
Guidance raises suggest improved cash flow and may support price, but elevated interest rates remain a headwind.
Market read
Both REITs posted solid Q2 performance and raised 2026 guidance, offering potential trading opportunities in the REIT space.
What to watch
Debt levels ($28.7B for SPG) and refinancing risk may limit upside.
Background
Jim Cramer highlighted the earnings and guidance lifts for two major U.S. retail REITs during a Mad Money segment.
Ticker impact
Q2 results show 7.9% YoY FFO growth and raised 2026 guidance to $13.20‑$13.30 per share.
Potential upside if market prices in higher FFO multiples.
Guidance lift and strong occupancy suggest improved cash flow.
Q2 core FFO up 6.8% YoY and 2026 guidance raised to $7.48‑$7.56 per share.
Likely modest price appreciation on guidance lift.
Higher rent escalations and stable occupancy underpin the guidance raise.
Market effects
Reinforces strength of upscale retail REIT sector amid high yields.
U.S. REITs may see buying interest as yields remain attractive.
Limited to U.S. real estate investors; no direct global impact.
Counterpoint
Higher interest rates could pressure REIT valuations despite guidance lifts.
Key entities
- CompanySimon Property Group, Inc.
Largest U.S. mall REIT, ticker SPG.
- CompanyFederal Realty Investment Trust
Upscale shopping‑center REIT, ticker FRT.
