Simon Property Group SPG recently announced its plan to develop a luxury shopping and lifestyle destination in Nashville, TN, the construction of which is set to begin in 2026. Spanning 325,000 square feet, Nashville Premium Outlets will have 75 best-in-class retailers, restaurants and a hotel. This may further include residential options, big-box retailers and more.
The above development showcases Simon’s strategy for growth, highlighting its efforts to expand its reach and scale.
In collaboration with the well-known Nashville-based hospitality pioneer Adventurous Journeys (“AJ”) Capital Partners, Simon is spearheading this development at Thompson’s Station, TN. At the intersection of Interstate 65 and Interstate 840, it is expected to become a major attraction for shoppers and tourists alike from around the state and region.
Simon’s Nashville Connection
Simon, a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations, has been tapping the Nashville market with two other iconic outlets — Opry Mills and The Mall at Green Hills.
The grandeur Opry Mills is the area’s largest shopping destination, with more than 200 stores and 20 restaurants serving the needs of shoppers. The Mall at Green Hills, in a joint venture with Taubman Realty Group, also helms a collection of high-end fashion brands and luxury boutiques.
The development of Nashville Premium Outlets will strengthen SPG’s foothold in this growing market and contribute to the long-term growth of this retail REIT.
SPG: In a Nutshell
Simon Property has been restructuring its portfolio, aiming at premium acquisitions and transformative redevelopments. Its focus on supporting omnichannel retailing and developing mixed-use assets is encouraging. The latest move is also in line with such efforts and is likely to drive healthy demand for its properties, aiding leasing activity, occupancy levels and rent growth.
Over the past six months, shares of this Zacks Rank #3 (Hold) company have risen 13.2%, outperforming its industry’s growth of 4.9%.
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Stocks to Consider
Some better-ranked stocks from the retail REIT sector are Regency Centers REG and Phillips Edison & Company PECO, each currently carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Phillips Edison & Company’s 2024 FFO per share stands at $2.42, indicating an increase of 3.4% from the year-ago reported figure.
The Zacks Consensus Estimate for Regency Centers’ 2024 FFO per share is pegged at $4.28, suggesting year-over-year growth of 3.1%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Today, See These 5 Potential Home Runs >>Simon Property Group, Inc. (SPG) : Free Stock Analysis Report
Regency Centers Corporation (REG) : Free Stock Analysis Report
Phillips Edison & Company, Inc. (PECO) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
