Simon Property Group, Inc.
SPG · NYSE
Next quarter
Reports Nov 2, 2026.
Consensus is $3.32 EPS for Sep 2026 across 6 estimates, ranging $3.29 to $3.35.
SPG Jun 2026
- 3.46%
- -0.46%
- $3.18
- $3.29
- —
- $1.79B
Reported results
- $1.79B
- $824.10M
- 46.02%
- $574.13M
- $1.49
Highlights
- Real Estate FFO: Second-quarter Real Estate FFO per share was $3.29, ahead of the $3.18 consensus by 3.46% and up 7.9% from $3.05 a year ago.
- Guidance: Simon raised its 2026 Real Estate FFO per share outlook to $13.20-$13.30 from $13.10-$13.25, increasing the midpoint by $0.08.
- Property operations: Domestic property NOI increased 8.5% year over year to $1.51 billion, while portfolio NOI rose 8.3% to $1.60 billion.
- Retail health: U.S. malls and Premium Outlets were 96.0% occupied, base minimum rent rose 6.3% to $62.42 per square foot, and trailing-12-month retailer sales increased 13.9% to $838 per square foot.
- Reported revenue: Revenue was $1.79 billion, up 19.5% from $1.50 billion a year ago and 1.7% from $1.76 billion in the first quarter.
- GAAP earnings: Net income attributable to common stockholders fell to $483.1 million, or $1.49 per diluted share, from $556.1 million, or $1.70, a year earlier; sequentially, EPS increased from $1.48.
- Capital returns: Simon repurchased $211.4 million of common shares and limited partnership units during the quarter and declared a $2.25 common dividend, up 4.7% year over year.
- Liquidity and financing: Liquidity was approximately $9.3 billion at quarter-end, while the company completed about $1.4 billion of secured loans and issued €500 million of five-year senior notes.
Analysis
Simon’s second quarter was a strong operating print led by property-level growth, with Real Estate FFO per share of $3.29 beating the $3.18 consensus by 3.46% and rising 7.9% year over year. Revenue increased 19.5% to $1.79 billion from $1.50 billion in the prior-year quarter and was modestly above the $1.76 billion first-quarter result. Operating income before other items rose 10.7% year over year to $824.1 million, versus $762.2 million in the prior quarter. Real Estate FFO per share also improved from an estimated $3.17 in the first quarter, based on first-half reported FFO of $6.46.
The headline GAAP figures were less favorable: net income attributable to common stockholders declined 13.1% to $483.1 million and diluted EPS fell to $1.49 from $1.70, although EPS was up from $1.48 sequentially. The year-ago comparison included a $0.21 per-share non-cash investment gain. The defining elements of the quarter were broad NOI growth, stronger retailer productivity and an improved outlook. Occupancy held at 96.0%, rent per square foot rose 6.3%, and retailer sales per square foot climbed 13.9%. Simon raised full-year Real Estate FFO guidance by $0.08 at the midpoint to $13.20-$13.30 per share, while continuing to fund buybacks, dividends and redevelopment from a well-capitalized balance sheet.
FFO and guidance
- Real Estate FFO: Real Estate FFO increased to $1.249 billion, or $3.29 per diluted share, from $1.154 billion, or $3.05 per share, in the second quarter of 2025. The 7.9% per-share growth included contributions from acquisitions completed over the past year.
- FFO mix: Total FFO per share was $3.12, down from $3.15 a year earlier because the prior-year period included a $0.21 per-share non-cash after-tax investment gain. First-half Real Estate FFO per share was $6.46, up 7.5% from $6.01.
- Outlook: The company lifted full-year 2026 Real Estate FFO guidance to $13.20-$13.30 per share from $13.10-$13.25, raising the midpoint from $13.175 to $13.25.
Property operating growth
- NOI: Domestic property NOI grew 8.5% year over year to $1.507 billion, and portfolio NOI rose 8.3% to $1.603 billion. First-half domestic property NOI was up 7.6% and portfolio NOI was up 7.5%.
- Revenue and margins: Consolidated revenue increased to $1.791 billion from $1.498 billion, while operating income before other items rose to $824.1 million from $744.2 million. Interest expense increased to $281.2 million from $232.7 million, reflecting the company’s larger financing base.
- Earnings bridge: GAAP net income attributable to common stockholders was $483.1 million, down from $556.1 million, while consolidated net income was $574.1 million versus $643.7 million. The comparison was affected by the $0.21-per-share investment gain recorded in the second quarter of 2025.
Leasing and retailer sales
- Occupancy: U.S. malls and Premium Outlets were 96.0% occupied at June 30, unchanged from a year earlier; occupancy at The Mills was 98.8%, versus 99.3% a year ago.
- Rent growth: Portfolio base minimum rent increased 6.3% to $62.42 per square foot from $58.70. The Mills’ base minimum rent rose to $42.28 per square foot from $37.65.
- Retail productivity: Reported retailer sales per square foot for the trailing 12 months increased 13.9% to $838 from $736. The combination of stable occupancy, higher rents and stronger sales supports Simon’s view that leasing demand remains broad-based.
Balance sheet and capital
- Liquidity: Simon had approximately $9.3 billion of liquidity at quarter-end, including $1.7 billion of cash and $7.6 billion of available revolving-credit capacity net of commercial paper.
- Financing activity: The company completed eight secured loan transactions totaling approximately $1.4 billion at a weighted average interest rate of 5.36%, issued €500 million of five-year senior notes at a 3.65% coupon, and closed a $460 million five-year term loan priced at SOFR plus 0.70%.
- Debt profile: Simon’s share of total indebtedness was $35.7 billion, with 94.8% fixed-rate debt and a weighted average interest rate of 4.09% on total fixed debt. Senior debt covenants remained comfortably met, including total debt to total assets of 37% against a 65% limit.
- Capital returns: The company repurchased 793,077 shares and 237,618 limited partnership units during the quarter for $211.4 million. The third-quarter common dividend was raised to $2.25 per share, a 4.7% year-over-year increase.
Redevelopment investment
- Development pipeline: Simon’s share of net investment in active redevelopment projects was $1.073 billion, with an expected stabilized return of 9%.
- 2026 spending: Forecasted 2026 investment was $424.0 million, or $347.2 million after funding from construction loans, international joint-venture cash and other sources.
- Capital spending: Six-month capital expenditures were $445.3 million at consolidated properties, down from $474.2 million in the prior-year period, while funds available for distribution increased to $2.158 billion from $1.976 billion.
