Investors digested the sudden spike in volatility last week, bringing stock market indexes lower across the global financial markets. What arguably started with Japan's interest rate hikes, which triggered an unwind in the so-called “Carry Trade,” has become top of mind for those looking to protect their portfolios.

REITs have been one of the worst-performing sectors since early 2022. However, REITs have recently become one of the best-performing sectors, outperforming tech stocks and the S&P 500 by a wide margin. We share why this trend is likely to continue moving forward.

Realty Income Corporation and Simon Property Group, Inc. are top-tier REITs with strong fundamentals and experienced management. Both companies reported positive earnings results in the second quarter, with Realty Income maintaining full-year guidance and Simon Property Group raising its FFO per share guidance. Realty Income has a diversified portfolio of properties and a strong balance sheet, while Simon Property Group has a significant international presence and solid financial metrics.

Simon Property's (SPG) Q2 results reflect a lower-than-expected FFO per share despite higher revenues and occupancy year over year.

Higher interest expenses hurt Simon Property's (SPG) Q2 results. However, a year-over-year rise in revenues offers some support.

While there are signs in the broader economy that a consumer-led recession could be on the way, real estate investment trust Simon Property Group remains optimistic about its shopping, dining, entertainment and mixed-use destinations.

Simon Property Group, Inc. (NYSE:SPG ) Q2 2024 Earnings Conference Call August 5, 2024 5:00 PM ET Company Participants Thomas Ward - Senior Vice President, Investor Relations David Simon - Chairman, Chief Executive Officer and President Brian McDade - Executive Vice President and Chief Financial Officer Conference Call Participants Jeff Spector - Bank of America Samir Khanal - Evercore ISI Caitlin Burrows - Goldman Sachs Alexander Goldfarb - Piper Sandler Michael Goldsmith - UBS Craig Mailman - Citigroup Juan Sanabria - BMO Capital Markets Ronald Kamdem - Morgan Stanley Haendel St. Juste - Mizuho Securities Vince Tibone - Green Street Greg McGinniss - Scotiabank Floris van Dijkum - Compass Point Linda Tsai - Jefferies Mike Muller - JPMorgan Ki Bin Kim - Truist Securities Operator Greetings. Welcome to Simon Property Group's Second Quarter 2024 Earnings Conference Call.

The headline numbers for Simon Property (SPG) give insight into how the company performed in the quarter ended June 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Simon Property (SPG) came out with quarterly funds from operations (FFO) of $2.90 per share, missing the Zacks Consensus Estimate of $2.93 per share. This compares to FFO of $2.88 per share a year ago.

Simon Property Group lowered annual forecast for net income and missed second-quarter estimates for funds from operations (FFO) on Monday.

INDIANAPOLIS , Aug. 5, 2024 /PRNewswire/ -- Simon ®, a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations, today reported results for the quarter ended June 30, 2024. "We are pleased with our financial and operational performance in the second quarter," said David Simon, Chairman, Chief Executive Officer and President.

Real Estate Investment Trusts (REITs) are underperforming the market this year as concerns about the economy and interest rate remain. The closely watched iShares Global REIT ETF (REET) stock has risen by just 2.4% while the Vanguard Real Estate Index Fund (VNQ) is up by just 3.30%.