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Simon Announces Opening of Jakarta Premium Outlets in Indonesia

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Simon Property Group (SPG - Free Report) announced the opening of the Jakarta Premium Outlets in Indonesia, representing the company’s first Premium Outlet in the country and eighth globally. Although the outlet is now fully open to shoppers, a formal grand opening ceremony will be held in the second quarter of 2025.

Jakarta Premium Outlets is set to cater to the Greater Jakarta area, encompassing more than 302,000 square feet of retail space. The center is nearly fully leased and features more than 150 global and local brands, including key premium, luxury brands, and sporting brands. Shoppers can also enjoy a variety of international dining options.

The shopping center is situated in the heart of the Alam Sutera Township central business district, located in Tangerang City, which boasts a population of more than two million residents.

The center’s design draws inspiration from the Indonesian archipelago, incorporating architectural elements such as lush greenery and shaded walkways.

Jakarta Premium Outlets is a subsidiary of Simon Genting Pte. Ltd., a joint venture between Genting Plantations Berhad and Simon.

Management Commentary

Per Mark Silvestri, president of Development at Simon, "Consistent with our international growth strategy, our aim is to offer shoppers exceptional value for the most sought-after brands while honoring Indonesia's vibrant character. In doing so, we have created a world-class shopping destination that combines global excellence with local authenticity."

SPG: In a Snapshot

Simon Property owns a diversified portfolio of premium retail assets in some of the key markets across the United States and globally. Solid retail-real-estate demand in the upcoming quarters is likely to drive healthy demand for its properties, aiding leasing activity, occupancy levels and rent growth.

During 2024, it signed 1,149 new leases and 2,549 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across its U.S. Malls and Premium Outlets portfolio.

Shares of this Zacks Rank #3 (Hold) company have fallen 1.7% in the past three months compared with the industry's decline of 3.6%.

 

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Stocks to Consider

Some better-ranked stocks from the retail REIT sector are Regency Centers (REG - Free Report) and Tanger, Inc. (SKT - Free Report) , each 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 Regency’s 2025 FFO per share is pinned at $4.54, indicating year-over-year growth of 5.6%.

The Zacks Consensus Estimate for Tanger’s 2025 FFO per share is $2.26, indicating an increase of 6.1% from the year-ago figure.

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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