Real Estate ETF Juggles SPG’s Q4 Beat and CoStar’s 38.8% Slide
Simon Property contributed to XLRE’s outperformance, delivering 5.7% returns over 52 weeks and 6.3% YTD while reporting Q4 revenue of $1.8B and AFFO of $3.49 per share with FFO guidance of $13-$13.25. Conversely, CoStar’s stock slid 38.8% year-over-year and 33.1% YTD after guiding Q4 revenue at $885M-$895M.
1. Simon Property Q4 Beat
Simon Property Group, a 229-property portfolio totaling 183 million square feet, reported Q4 revenue of $1.8B and AFFO of $3.49 per share, exceeding estimates and issuing full-year FFO guidance of $13.00 to $13.25. Its shares rose 5.7% over the past 52 weeks and 6.3% year-to-date.
2. CoStar Performance Weakness
CoStar Group, valued at $19.1B market cap, underperformed with a 38.8% decline over 52 weeks and 33.1% year-to-date. The firm guided Q4 revenue between $885M and $895M, prompting the stock to tumble nearly 10% following its Q3 results and soft forward outlook.
3. Implications for XLRE ETF
Within the State Street Real Estate Select Sector ETF, Simon Property’s strong earnings and guidance bolster performance while CoStar’s steep drop drags returns. Investors will monitor portfolio weightings in SPG and CSGP and distribution impacts as FFO guidance and revenue outlooks evolve.