US Market News
2 months ago
Simon® Reports First Quarter 2026 Results, Increases Full Year 2026 Real Estate FFO Per Share Guidance and Raises Quarterly DividendMay 11, 2026 4:05 PM
PR Newswire (US) INDIANAPOLIS, May 11, 2026 /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 March 31, 2026. "We are very pleased with our first-quarter results," said Eli Simon, Chief Executive Officer, President and Chief Operating Officer. "Our portfolio delivered strong operating performance, supported by continued leasing momentum, retailer sales and traffic increases, disciplined capital allocation, and growth in cash flow. Today, we increased our full-year 2026 Real Estate FFO per share guidance and raised our quarterly dividend." Results for the QuarterNet income attributable to common stockholders was $479.6 million, or $1.48 per diluted share, as compared to $413.7 million, or $1.27 per diluted share in 2025.Real Estate Funds From Operations ("Real Estate FFO") was $1.208 billion, or $3.17 per diluted share as compared to $1.113 billion, or $2.95 per diluted share in the prior year, an increase of 7.5%.Funds From Operations ("FFO") was $1.108 billion, or $2.91 per diluted share as compared to $1.005 billion, or $2.67 per diluted share in the prior year, an increase of 9.0%.Domestic property Net Operating Income ("NOI") increased 6.7% and portfolio NOI increased 6.7% compared to the prior year period. U.S. Malls and Premium Outlets Operating StatisticsOccupancy at March 31, 2026 was 96.0%, compared to 95.9% at March 31, 2025.Base minimum rent per square foot was $61.99 at March 31, 2026, compared to $58.92 at March 31, 2025, an increase of 5.2%. Reported retailer sales per square foot was $819 for the trailing 12 months ended March 31, 2026, compared to $733 at March 31, 2025, an increase of 11.8%.Dividends
Today, Simon's Board of Directors declared a quarterly common stock dividend of $2.25 for the second quarter of 2026. This is an increase of $0.15, or 7.1% year-over-year. The dividend will be payable on June 30, 2026 to shareholders of record on June 9, 2026. Simon's Board of Directors declared the quarterly dividend on its 8 3/8% Series J Cumulative Redeemable Preferred Stock (NYSE: SPGPrJ) of $1.046875 per share, payable on June 30, 2026 to shareholders of record on June 16, 2026. Common Stock Repurchase Program
During the quarter ended March 31, 2026, the Company repurchased 965,296 shares of its common stock for approximately $175 million, or $181.59 per share.Capital Markets and Balance Sheet Liquidity
During the quarter, the Company completed 10 secured loan transactions totaling approximately $2.3 billion (U.S. dollar equivalent). The weighted average interest rate on these loans was 5.25%.The Company also completed a senior notes offering totaling $800 million with a term of 5 years and 4.30% coupon. The proceeds were used to repay the $800 million outstanding principal amount of its 3.30% notes at maturity on January 15, 2026.The Company amended, restated and extended its $5.0 billion multi-currency unsecured revolving credit facility. The facility will initially mature on June 30, 2030 and at our sole option, can be extended for an additional year to June 30, 2031. Based upon the Company's current credit ratings, the interest rate on the new revolver for U.S. Dollar borrowings is 15.0 basis points lower than the prior facility's at SOFR plus 65.0 basis points. As of March 31, 2026, Simon had approximately $8.7 billion of liquidity consisting of $1.2 billion of cash on hand, including its share of joint venture cash, and $7.5 billion of available capacity under its revolving credit facilities.2026 Guidance
The Company's estimates for net income attributable to common stockholders per diluted share and Real Estate FFO per diluted share for the year ending December 31, 2026 are included in the table below and are reconciled in the Company's supplemental information. The Company is increasing its outlook for Real Estate FFO to $13.10 to $13.25 per diluted share. The Real Estate FFO per diluted share range is an increase from the $13.00 to $13.25 per diluted share range provided on February 2, 2026, or an increase of $0.05 per diluted share at the mid-point.
Low High
End EndEstimated net income attributable to common stockholders
per diluted share $6.61$6.76Estimated Real Estate FFO per diluted share $13.10$13.25Conference Call
Simon will hold a conference call to discuss the quarterly financial results today from 5:00 p.m. to 6:00 p.m. Eastern Daylight Time, Monday, May 11, 2026. A live webcast of the conference call will be accessible in listen-only mode at investors.simon.com. An audio replay of the conference call will be available until May 18, 2026. To access the audio replay, dial 1-844-512-2921 (international +1-412-317-6671) passcode 13760027. Supplemental Materials and Website
Supplemental information on our first quarter 2026 performance is available at investors.simon.com. This information has also been furnished to the SEC in a current report on Form 8-K.We routinely post important information online on our investor relations website, investors.simon.com. We use this website, press releases, SEC filings, quarterly conference calls, presentations and webcasts to disclose material, non-public information in accordance with Regulation FD. We encourage members of the investment community to monitor these distribution channels for material disclosures. Any information accessed through our website is not incorporated by reference into, and is not a part of, this document.Non-GAAP Financial Measures
This press release includes FFO, FFO per share, Real Estate FFO, Real Estate FFO per share and domestic and portfolio NOI growth which are financial performance measures not defined by generally accepted accounting principles in the United States ("GAAP"). Real estate FFO is FFO of the operating partnership less other platform investments and loss (gain) due to disposal, exchange, or revaluation of equity interests, in each case, net of tax; and unrealized losses (gains) in fair value of publicly traded equity instruments and derivative instrument, net. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in Simon's supplemental information for the quarter. FFO and NOI growth are financial performance measures widely used in the REIT industry. Our definitions of these non-GAAP measures may not be the same as similar measures reported by other REITs.Forward-Looking Statements
Certain statements made in this press release may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although Simon believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, Simon can give no assurance that its expectations will be attained, and it is possible that Simon's actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to: the intensely competitive market environment in the retail real estate industry and the retail industry, including e-commerce; the inability to renew leases and relet vacant space at existing properties on favorable terms; the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; the potential loss of anchor stores or major tenants; an increase in vacant space at our properties; the loss of key management personnel; changes in economic and market conditions that may adversely affect the general retail environment, including but not limited to those caused by inflation, the impact of tariffs and global trade disruptions on us to the extent impacting our tenants, recessionary pressures, wars, escalating geopolitical tensions as a result of the war in Ukraine and the conflicts in the Middle East, and supply chain disruptions; the potential for violence, civil unrest, criminal activity or terrorist activities at our properties; the availability of comprehensive insurance coverage; security breaches that could compromise our information technology or infrastructure; changes in market rates of interest; our international activities subjecting us to risks that are different from or greater than those associated with our domestic operations, including changes in foreign exchange rates; the impact of our substantial indebtedness on our future operations, including covenants in the governing agreements that impose restrictions on us that may affect our ability to operate freely; any disruption in the financial markets that may adversely affect our ability to access capital for growth and satisfy our ongoing debt service requirements; any change in our credit rating; our continued ability to maintain our status as a REIT; changes in tax laws or regulations that result in adverse tax consequences; risks associated with the acquisition, development, redevelopment, expansion, leasing and management of properties; the inability to lease newly developed properties on favorable terms; risks relating to our joint venture properties, including guarantees of certain joint venture indebtedness; the effects of climate change; environmental liabilities; natural or other disasters; uncertainties regarding the impact of pandemics, epidemics or public health crises, and the associated governmental restrictions on our business, financial condition, results of operations, cash flow and liquidity; and general risks related to real estate investments, including the illiquidity of real estate investments.Simon discusses these and other risks and uncertainties under the heading "Risk Factors" in its annual and quarterly periodic reports filed with the SEC. Simon may update that discussion in subsequent other periodic reports, but except as required by law, Simon undertakes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.About Simon
Simon® is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales. Simon Property Group, Inc.Unaudited Consolidated Statements of Operations(Dollars in thousands, except per share amounts)
For the Three Months
Ended March 31,
20262025
REVENUE:
Lease income$ 1,628,532$ 1,367,428Management fees and other revenues40,18933,792Other income88,37271,792Total revenue1,757,0931,473,012
EXPENSES:
Property operating170,760136,821Depreciation and amortization458,898328,051Real estate taxes135,960107,452Repairs and maintenance40,20030,142Advertising and promotion33,93034,257Home and regional office costs67,65665,066General and administrative54,29912,629Other33,22730,978Total operating expenses994,930745,396
OPERATING INCOME BEFORE OTHER ITEMS762,163727,616
Interest expense(275,662)(226,995)Loss due to disposal, exchange, or revaluation of equity interests, net(6,379)(23,992)Income and other tax benefit19,9347,637(Loss) income from unconsolidated entities(21,248)30,359Unrealized gains (losses) in fair value of publicly traded equity instruments and
derivative instrument, net25,388(36,765)Gain on acquisition of controlling interest, sale or disposal of, or recovery on,
assets and interests in unconsolidated entities and impairment, net64,339-
CONSOLIDATED NET INCOME568,535477,860
Net income attributable to noncontrolling interests 88,13263,327Preferred dividends834834
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS$ 479,569$ 413,699
BASIC AND DILUTED EARNINGS PER COMMON SHARE:
Net income attributable to common stockholders$ 1.48$ 1.27 Simon Property Group, Inc.Unaudited Consolidated Balance Sheets(Dollars in thousands, except share amounts)
March 31,December 31,
20262025ASSETS:
Investment properties, at cost$ 50,936,227$ 50,946,067Less - accumulated depreciation20,988,49120,701,510
29,947,73630,244,557Cash and cash equivalents542,955823,147Tenant receivables and accrued revenue, net880,807934,077Investment in other unconsolidated entities, at equity4,196,0124,362,339Investment in Klépierre, at equity1,363,6151,505,377Right-of-use assets, net738,033755,934Deferred costs and other assets1,969,9231,981,035Total assets$ 39,639,081$ 40,606,466
LIABILITIES:
Mortgages and unsecured indebtedness$ 28,247,682$ 28,430,175Accounts payable, accrued expenses, intangibles, and deferred revenues1,701,7571,954,402Cash distributions and losses in unconsolidated entities, at equity1,791,3541,739,418Dividend payable1,4622,723Lease liabilities734,567756,539Other liabilities825,4771,017,816Total liabilities33,302,29933,901,073
Commitments and contingencies
Limited partners' preferred interest in the Operating Partnership and noncontrolling
redeemable interests264,251233,306
EQUITY:
Stockholders' Equity
Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000
shares of excess common stock, 100,000,000 authorized shares of preferred stock):
Series J 8 3/8% cumulative redeemable preferred stock, 1,000,000 shares authorized,
796,948 issued and outstanding with a liquidation value of $39,84740,36940,451
Common stock, $0.0001 par value, 511,990,000 shares authorized, 343,060,687 and
343,060,687 issued and outstanding, respectively3333
Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000
issued and outstanding--
Capital in excess of par value12,411,23612,347,192Accumulated deficit(4,875,676)(4,608,136)Accumulated other comprehensive loss(227,770)(251,361)Common stock held in treasury, at cost, 18,778,775 and 17,844,817 shares, respectively(2,489,435)(2,319,911)Total stockholders' equity4,858,7575,208,268Noncontrolling interests1,213,7741,263,819Total equity6,072,5316,472,087Total liabilities and equity$ 39,639,081$ 40,606,466 Simon Property Group, Inc.Unaudited Joint Venture Combined Statements of Operations(Dollars in thousands)
For the Three Months Ended March 31,
20262025
REVENUE:
Lease income$ 921,792$ 749,807
Other income105,18094,066
Total revenue1,026,972843,873
OPERATING EXPENSES:
Property operating214,941166,647
Depreciation and amortization185,164159,012
Real estate taxes66,39858,793
Repairs and maintenance26,28120,763
Advertising and promotion24,93222,150
Other72,28556,847
Total operating expenses590,001484,212
OPERATING INCOME BEFORE OTHER ITEMS436,971359,661
Interest expense(205,038)(170,368)
NET INCOME$ 231,933$ 189,293
Third-Party Investors' Share of Net Income$ 116,464$ 96,594
Our Share of Net Income115,46992,699
Amortization of Excess Investment (A)(47,657)(14,465)
Income from Unconsolidated Entities (B)$ 67,812$ 78,234
Note: The above financial presentation does not include any information related to our investments in Klépierre S.A. ("Klépierre"), our other platform investments, and our previously held equity investment in The Taubman Realty Group ("TRG") up to the October 31, 2025 transaction. For additional information, see footnote B.
Simon Property Group, Inc.Unaudited Joint Venture Combined Balance Sheets(Dollars in thousands)
March 31,December 31,
20262025
Assets:
Investment properties, at cost$ 21,425,679$ 22,077,749
Less - accumulated depreciation9,907,1589,020,481
11,518,52113,057,268
Cash and cash equivalents1,498,2981,264,619
Tenant receivables and accrued revenue, net594,048605,756
Right-of-use assets, net115,191108,349
Deferred costs and other assets639,371572,826
Total assets$ 14,365,429$ 15,608,818
Liabilities and Partners' Deficit:
Mortgages$ 16,419,497$ 16,374,773
Accounts payable, accrued expenses, intangibles, and deferred revenue1,119,2271,117,855
Lease liabilities116,95099,837
Other liabilities389,828334,246
Total liabilities18,045,50217,926,711
Preferred units67,45067,450
Partners' deficit(3,747,524)(2,385,343)
Total liabilities and partners' deficit$ 14,365,429$ 15,608,818
Our Share of:
Partners' deficit$ (1,635,892)$ (1,247,554)
Add: Excess Investment (A)3,071,3492,773,173
Our net Investment in unconsolidated entities, at equity$ 1,435,457$ 1,525,619
Note: The above financial presentation does not include any information related to our investments in Klépierre and our other platform investments. For additional information, see footnote B. Simon Property Group, Inc.Unaudited Reconciliation of Non-GAAP Financial Measures (C)(Amounts in thousands, except per share amounts)
Reconciliation of Consolidated Net Income to FFO and Real Estate FFO
For the Three Months Ended
March 31,
2026
2025
Consolidated Net Income (D)
$ 568,535
$ 477,860Adjustments to Arrive at FFO:
Depreciation and amortization from consolidated
properties
454,779
324,322
Our share of depreciation and amortization from
unconsolidated entities, including Klépierre, TRG and other corporate investments161,608
208,964
Gain on acquisition of controlling interest, sale or disposal of, or recovery on,
assets and interests in unconsolidated entities and impairment, net(64,339)
-
Net (gain) loss attributable to noncontrolling interest holders in
properties
(5,621)
1,292
Noncontrolling interests portion of depreciation and amortization(6,286)
(5,993)
Preferred distributions and dividends(1,032)
(1,126)FFO of the Operating Partnership (1)
$ 1,107,644
$ 1,005,319
FFO of the Operating Partnership (1)
$ 1,107,644
$ 1,005,319
Loss due to disposal, exchange, or revaluation of equity interests, net of tax5,318
17,994
Other platform investments, net of tax120,382
52,843
Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net(25,388)
36,765Real Estate FFO (1)
$ 1,207,956
$ 1,112,921
Diluted net income per share to diluted FFO per share reconciliation:
Diluted net income per share
$ 1.48
$ 1.27
Depreciation and amortization from consolidated properties
and our share of depreciation and amortization from unconsolidated
entities, including Klépierre, TRG and other corporate investments, net of noncontrolling
interests portion of depreciation and amortization1.60
1.40
Gain on acquisition of controlling interest, sale or disposal of, or recovery on,
assets and interests in unconsolidated entities and impairment, net(0.17)
-Diluted FFO per share (1)
$ 2.91
$ 2.67
Loss due to disposal, exchange, or revaluation of equity interests, net of tax0.02
0.05
Other platform investments, net of tax0.31
0.13
Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net(0.07)
0.10Real Estate FFO per share (1)
$ 3.17
$ 2.95
7.5 %
Details for per share calculations:
FFO of the Operating Partnership
$ 1,107,644
$ 1,005,319Diluted FFO allocable to unitholders
(162,264)
(135,284)Diluted FFO allocable to common stockholders
$ 945,380
$ 870,035
Basic and Diluted weighted average shares outstanding324,961
326,313Weighted average limited partnership units outstanding55,776
50,740Basic and Diluted weighted average shares and units outstanding380,737
377,053
Basic and Diluted FFO per Share
$ 2.91
$ 2.67 Percent Change
9.0 %
(1) FFO and Diluted FFO per share includes $40.0 million, or $0.10 per share, of accelerated stock compensation expense, of which $8.3 million, or $0.02 per share, is included in Real Estate FFO and Real Estate FFO per share and $31.7 million, or $0.08 per share, is included in Other platform investments, net of tax. Simon Property Group, Inc.Footnotes to Unaudited Financial Information
Notes:
(A)Excess investment represents the unamortized difference of our investment over equity in the underlying net assets of the related partnerships and joint ventures shown therein. The Company generally amortizes excess investment over the life of the related assets.
(B)The Unaudited Joint Venture Combined Statements of Operations do not include any operations or our share of net income or excess investment amortization related to our investments in Klépierre, our other platform investments and our previously held equity investment in TRG prior to the October 31, 2025 transaction. Amounts included in Footnote D below exclude our share of related activity for our investments in Klépierre, our other platform investments and our previously held equity investment in TRG prior to the October 31, 2025 transaction. For further information on Klépierre, reference should be made to financial information in Klépierre's public filings and additional discussion and analysis in our Form 10-K.
(C)This report contains measures of financial or operating performance that are not specifically defined by GAAP, including FFO, FFO per share, Real Estate FFO and Real Estate FFO per share. FFO is a performance measure that is standard in the REIT business. We believe FFO provides investors with additional information concerning our operating performance and a basis to compare our performance with those of other REITs. We also use these measures internally to monitor the operating performance of our portfolio. Our computation of these non-GAAP measures may not be the same as similar measures reported by other REITs.
We determine FFO based upon the definition set forth by the National Association of Real Estate Investment Trusts ("NAREIT") Funds From Operations White Paper - 2018 Restatement. Our main business includes acquiring, owning, operating, developing, and redeveloping real estate in conjunction with the rental of retail real estate. Gains and losses of assets incidental to our main business are included in FFO. We determine FFO to be our share of consolidated net income computed in accordance with GAAP, excluding real estate related depreciation and amortization, excluding gains and losses from extraordinary items, excluding gains and losses from the sale, disposal or property insurance recoveries of, or any impairment related to, depreciable retail operating properties, plus the allocable portion of FFO of unconsolidated joint ventures based upon economic ownership interest, and all determined on a consistent basis in accordance with GAAP. However, you should understand that FFO does not represent cash flow from operations as defined by GAAP, should not be considered as an alternative to net income determined in accordance with GAAP as a measure of operating performance, and is not an alternative to cash flows as a measure of liquidity.
(D)Includes our share of:
-Gain on land sales of $1.8 million and $0.0 million for the three months ended March 31, 2026 and 2025, respectively.
-Straight-line adjustments increased income by $5.9 million and $2.2 million for the three months ended March 31, 2026 and 2025, respectively.
-Amortization of fair market value of leases increased income by $0.2 million and $0.3 million for the three months ended March 31, 2026 and 2025, respectively. View original content to download multimedia:https://www.prnewswire.com/news-releases/simon-reports-first-quarter-2026-results-increases-full-year-2026-real-estate-ffo-per-share-guidance-and-raises-quarterly-dividend-302768514.htmlSOURCE Simon Original: Simon® Reports First Quarter 2026 Results, Increases Full Year 2026 Real Estate FFO Per Share Guidance and Raises Quarterly Dividend
US Market News
5 months ago
Simon® Reports Fourth Quarter and Full Year 2025 ResultsFebruary 2, 2026 4:05 PM
PR Newswire (US)
INDIANAPOLIS, Feb. 2, 2026 /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 and twelve months ended December 31, 2025.
"I am very pleased with our fourth-quarter results, which caps another impressive year of performance for our Company," said David Simon, Chairman, Chief Executive Officer and President. "In 2025, we generated record Real Estate Funds From Operations of $4.8 billion and returned a remarkable $3.5 billion to our shareholders. We executed over 17 million square feet of leases, opened a new Premium Outlet in Indonesia, completed 23 significant redevelopment projects, and acquired $2 billion of high-quality retail properties. We remain focused on disciplined, value-creating investment activity and operational excellence that will drive sustainable growth in cash flow, FFO, and dividends per share." Results for the QuarterNet income attributable to common stockholders was $3.048 billion, or $9.35 per diluted share, as compared to $667.2 million, or $2.04 per diluted share in 2024.Net income for the fourth quarter of 2025 includes a non-cash gain of $2.89 billion primarily related to our acquisition of the remaining interest in Taubman Realty Group, resulting from the remeasurement of our previously held equity interest to fair value.Real Estate Funds From Operations ("Real Estate FFO") was $1.328 billion, or $3.49 per diluted share as compared to $1.261 billion, or $3.35 per diluted share in the prior year, an increase of 4.2%.Funds From Operations ("FFO") was $1.242 billion, or $3.27 per diluted share as compared to $1.389 billion, or $3.68 per diluted share in the prior year.FFO in the fourth quarter of 2025 includes: contribution of $55.5 million, or $0.15 per diluted share from the Company's Other Platform Investments; a one-time after-tax loss of $120.7 million, or $0.31 per diluted share primarily related to Catalyst Brands restructuring costs and valuation adjustment for certain cost method investments; and a non-cash loss of $21.1 million, or $0.06 per diluted share due to an unrealized mark-to-market in fair value adjustment of the Klépierre exchangeable bonds the Company issued in November 2023. Domestic property Net Operating Income ("NOI") increased 4.8% and portfolio NOI increased 5.1% compared to the prior year period. Results for the YearNet income attributable to common stockholders was $4.624 billion, or $14.17 per diluted share, as compared to $2.368 billion, or $7.26 per diluted share in 2024.Real Estate FFO was $4.812 billion, or $12.73 per diluted share as compared to $4.597 billion, or $12.24 per diluted share in the prior year, an increase of 4.0%.FFO was $4.663 billion, or $12.34 per diluted share as compared to $4.877 billion, or $12.99 per diluted share in the prior year.Domestic property NOI increased 4.4% and portfolio NOI increased 4.7% compared to the prior year period. U.S. Malls and Premium Outlets Operating StatisticsOccupancy at December 31, 2025 was 96.4%, compared to 96.5% at December 31, 2024.Base minimum rent per square foot was $60.97 at December 31, 2025, compared to $58.26 at December 31, 2024, an increase of 4.7%. Reported retailer sales per square foot was $799 for the trailing 12 months ended December 31, 2025, compared to $739 at December 31, 2024, an increase of 8.1%.Capital Markets and Balance Sheet Liquidity
The Company was active in both the secured and unsecured credit markets in 2025.The Company completed a two tranche senior notes offering totaling $1.5 billion, with a weighted-average term of 7.8 years and a coupon rate of 4.775%. In addition, the Company completed 46 secured loan transactions totaling approximately $7.0 billion (U.S. dollar equivalent), with a weighted average interest rate of 5.43%. As of December 31, 2025, Simon had approximately $9.1 billion of liquidity consisting of $1.4 billion of cash on hand, including its share of joint venture cash, and $7.7 billion of available capacity under its revolving credit facilities.Subsequent to year-end, the Company completed an $800 million offering of 5-year, 4.300% senior notes. The proceeds were used to repay the $800 million outstanding principal amount of its 3.300% notes at maturity on January 15, 2026. Dividends
Today, Simon's Board of Directors declared a quarterly common stock dividend of $2.20 for the first quarter of 2026. This is an increase of $0.10, or 4.8% year-over-year. The dividend will be payable on March 31, 2026 to shareholders of record on March 10, 2026. Simon's Board of Directors declared the quarterly dividend on its 8 3/8% Series J Cumulative Redeemable Preferred Stock (NYSE: SPGPrJ) of $1.046875 per share, payable on March 31, 2026 to shareholders of record on March 17, 2026. 2026 Guidance
The Company currently estimates net income to be within a range of $6.87 to $7.12 per diluted share and Real Estate FFO to be within a range of $13.00 to $13.25 per diluted share for the year ending December 31, 2026. The following table provides the GAAP to non-GAAP reconciliation for the expected range of estimated net income attributable to common stockholders per diluted share to estimated Real Estate FFO per diluted share:
Low
High
End
EndEstimated net income attributable to common stockholders per diluted share$6.87
$7.12Depreciation and amortization including Simon's share of unconsolidated entities6.13
6.13Estimated Real Estate FFO per diluted share$13.00
$13.25Conference Call
Simon will hold a conference call to discuss the quarterly financial results today from 5:00 p.m. to 6:00 p.m. Eastern Time, Monday, February 2, 2026. A live webcast of the conference call will be accessible in listen-only mode at investors.simon.com. An audio replay of the conference call will be available until February 9, 2026. To access the audio replay, dial 1-844-512-2921 (international +1-412-317-6671) passcode 13758027. Supplemental Materials and Website
Supplemental information on our fourth quarter 2025 performance is available at investors.simon.com. This information has also been furnished to the SEC in a current report on Form 8-K.We routinely post important information online on our investor relations website, investors.simon.com. We use this website, press releases, SEC filings, quarterly conference calls, presentations and webcasts to disclose material, non-public information in accordance with Regulation FD. We encourage members of the investment community to monitor these distribution channels for material disclosures. Any information accessed through our website is not incorporated by reference into, and is not a part of, this document.Non-GAAP Financial Measures
This press release includes FFO, FFO per share, Real Estate FFO, Real Estate FFO per share and domestic and portfolio NOI growth which are financial performance measures not defined by generally accepted accounting principles in the United States ("GAAP"). Real estate FFO is FFO of the operating partnership less other platform investments and loss (gain) due to disposal, exchange, or revaluation of equity interests, in each case, net of tax; and unrealized losses (gains) in fair value of publicly traded equity instruments and derivative instrument, net. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in Simon's supplemental information for the quarter. FFO and NOI growth are financial performance measures widely used in the REIT industry. Our definitions of these non-GAAP measures may not be the same as similar measures reported by other REITs.Forward-Looking Statements
Certain statements made in this press release may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained, and it is possible that the Company's actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to: the intensely competitive market environment in the retail real estate industry, the retail industry, including e-commerce; the inability to renew leases and relet vacant space at existing properties on favorable terms; the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; the potential loss of anchor stores or major tenants; an increase in vacant space at our properties; the loss of key management personnel; changes in economic and market conditions that may adversely affect the general retail environment, including but not limited to those caused by inflation, the impact of tariffs and global trade disruptions on us to the extent impacting our tenants, recessionary pressures, wars, escalating geopolitical tensions as a result of the war in Ukraine and the conflicts in the Middle East, and supply chain disruptions; the potential for violence, civil unrest, criminal activity or terrorist activities at our properties; the availability of comprehensive insurance coverage; security breaches that could compromise our information technology or infrastructure; changes in market rates of interest; our international activities subjecting us to risks that are different from or greater than those associated with our domestic operations, including changes in foreign exchange rates; the impact of our substantial indebtedness on our future operations, including covenants in the governing agreements that impose restrictions on us that may affect our ability to operate freely; any disruption in the financial markets that may adversely affect our ability to access capital for growth and satisfy our ongoing debt service requirements; any change in our credit rating; our continued ability to maintain our status as a REIT; changes in tax laws or regulations that result in adverse tax consequences; risks associated with the acquisition, development, redevelopment, expansion, leasing and management of properties; the inability to lease newly developed properties on favorable terms; risks relating to our joint venture properties, including guarantees of certain joint venture indebtedness; the effects of climate change; environmental liabilities; natural or other disasters; uncertainties regarding the impact of pandemics, epidemics or public health crises, and the associated governmental restrictions on our business, financial condition, results of operations, cash flow and liquidity; and general risks related to real estate investments, including the illiquidity of real estate investments.The Company discusses these and other risks and uncertainties under the heading "Risk Factors" in its annual and quarterly periodic reports filed with the SEC. The Company may update that discussion in subsequent other periodic reports, but except as required by law, the Company undertakes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.About Simon
Simon® is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales. Simon Property Group, Inc.Unaudited Consolidated Statements of Operations(Dollars in thousands, except per share amounts)
For the Three Months
For the Twelve Months
Ended December 31,
Ended December 31,
20252024
20252024
REVENUE:
Lease income$ 1,639,349$ 1,431,524
$ 5,839,160$ 5,389,760Management fees and other revenues35,77737,147
144,426133,250Other income116,336113,561
380,919440,788Total revenue1,791,4621,582,232
6,364,5055,963,798
EXPENSES:
Property operating154,528131,233
580,975529,753Depreciation and amortization420,675327,591
1,426,4231,265,340Real estate taxes122,959108,792
451,128408,641Repairs and maintenance37,94031,748
119,915105,020Advertising and promotion46,61543,504
155,826144,551Home and regional office costs64,83558,721
251,748223,277General and administrative17,87015,602
60,88844,743Other35,37129,295
142,206149,677Total operating expenses900,793746,486
3,189,1092,871,002
OPERATING INCOME BEFORE OTHER ITEMS890,669835,746
3,175,3963,092,796
Interest expense(272,327)(227,414)
(974,835)(905,797)(Loss) gain due to disposal, exchange, or revaluation of equity interests, net(157,755)36,403
(86,119)451,172Income and other tax benefit (expense)6,79631,908
(35,788)(23,262)Income from unconsolidated entities206,938140,947
504,088207,322Unrealized (losses) gains in fair value of publicly traded equity instruments and
derivative instrument, net(21,105)36,740
(106,082)(17,392)Gain (loss) on acquisition of controlling interest, sale or disposal of, or recovery on,
assets and interests in unconsolidated entities and impairment, net2,886,666(82,570)
2,887,460(75,818)
CONSOLIDATED NET INCOME3,539,882771,760
5,364,1202,729,021
Net income attributable to noncontrolling interests 490,779103,695
736,508358,125Preferred dividends834834
3,3373,337
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS$ 3,048,269$ 667,231
$ 4,624,275$ 2,367,559
BASIC AND DILUTED EARNINGS PER COMMON SHARE:
Net income attributable to common stockholders$ 9.35$ 2.04
$ 14.17$ 7.26 Simon Property Group, Inc.Unaudited Consolidated Balance Sheets(Dollars in thousands, except share amounts)
December 31,December 31,
20252024ASSETS:
Investment properties, at cost$ 50,946,067$ 40,242,392Less - accumulated depreciation20,701,51019,047,078
30,244,55721,195,314Cash and cash equivalents823,1471,400,345Tenant receivables and accrued revenue, net934,077796,513Investment in other unconsolidated entities, at equity4,362,3392,670,739Investment in Klépierre, at equity1,505,3771,384,267Investment in TRG, at equity-3,069,297Right-of-use assets, net755,934519,607Deferred costs and other assets1,981,0351,369,609Total assets$ 40,606,466$ 32,405,691
LIABILITIES:
Mortgages and unsecured indebtedness$ 28,430,175$ 24,264,495Accounts payable, accrued expenses, intangibles, and deferred revenues1,954,4021,712,465Cash distributions and losses in unconsolidated entities, at equity1,739,4181,680,431Dividend payable2,7232,410Lease liabilities756,539520,283Other liabilities1,017,816626,155Total liabilities33,901,07328,806,239
Commitments and contingencies
Limited partners' preferred interest in the Operating Partnership and noncontrolling
redeemable interests233,306184,729
EQUITY:
Stockholders' Equity
Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000
shares of excess common stock, 100,000,000 authorized shares of preferred stock):
Series J 8 3/8% cumulative redeemable preferred stock, 1,000,000 shares authorized,
796,948 issued and outstanding with a liquidation value of $39,84740,45140,778
Common stock, $0.0001 par value, 511,990,000 shares authorized, 343,060,687 and
342,945,839 issued and outstanding, respectively3333
Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000
issued and outstanding--
Capital in excess of par value12,347,19211,583,051Accumulated deficit(4,608,136)(6,382,515)Accumulated other comprehensive loss(251,361)(193,026)Common stock held in treasury, at cost, 17,844,817 and 16,675,701 shares, respectively(2,319,911)(2,106,396)Total stockholders' equity5,208,2682,941,925Noncontrolling interests1,263,819472,798Total equity6,472,0873,414,723Total liabilities and equity$ 40,606,466$ 32,405,691 Simon Property Group, Inc.Unaudited Joint Venture Combined Statements of Operations(Dollars in thousands)
For the Three Months Ended December 31,
For the Twelve Months Ended December 31,
20252024
20252024
REVENUE:
Lease income$ 923,287$ 803,654
$ 3,189,131$ 3,060,755Other income122,944107,089
440,052385,004Total revenue1,046,231910,743
3,629,1833,445,759
OPERATING EXPENSES:
Property operating187,806165,794
687,216660,004Depreciation and amortization182,089162,824
653,488636,218Real estate taxes64,36050,876
231,945231,843Repairs and maintenance25,56019,155
88,09174,172Advertising and promotion31,13225,400
96,71888,693Other77,565137,912
257,799299,645Total operating expenses568,512561,961
2,015,2571,990,575
OPERATING INCOME BEFORE OTHER ITEMS477,719348,782
1,613,9261,455,184
Interest expense(198,994)(178,710)
(719,938)(711,402)Gain (loss) on sale or disposal of, or recovery on, assets and interests in unconsolidated entities, net22,648(36,536)
23,865(36,536)
NET INCOME$ 301,373$ 133,536
$ 917,853$ 707,246
Third-Party Investors' Share of Net Income$ 164,861$ 69,275
$ 479,160$ 360,792
Our Share of Net Income136,51264,261
438,693346,454Amortization of Excess Investment (A)(37,180)(14,599)
(79,338)(58,163)
Our Share of loss due to disposal, exchange, or revaluation of equity interests, net in the Consolidated Financial Statements-36,470
-36,470
Our Share of loss (gain) on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net
-18,236
(722)18,236
Income from Unconsolidated Entities (B)$ 99,332$ 104,368
$ 358,633$ 342,997
Note: The above financial presentation does not include any information related to our investments in Klépierre S.A. ("Klépierre"), our other platform investments, and our previously held equity investment in The Taubman Realty Group ("TRG") up to the October 31, 2025 transaction. For additional information, see footnote B. Simon Property Group, Inc.Unaudited Joint Venture Combined Balance Sheets(Dollars in thousands)
December 31,December 31,
20252024Assets:
Investment properties, at cost$ 22,077,749$ 18,875,241Less - accumulated depreciation9,020,4818,944,188
13,057,2689,931,053Cash and cash equivalents1,264,6191,270,594Tenant receivables and accrued revenue, net605,756533,676Right-of-use assets, net108,349113,014Deferred costs and other assets572,826531,059Total assets$ 15,608,818$ 12,379,396
Liabilities and Partners' Deficit:
Mortgages$ 16,374,773$ 13,666,090Accounts payable, accrued expenses, intangibles, and deferred revenue1,117,8551,037,015Lease liabilities99,837104,120Other liabilities334,246363,488Total liabilities17,926,71115,170,713
Preferred units67,45067,450Partners' deficit(2,385,343)(2,858,767)Total liabilities and partners' deficit$ 15,608,818$ 12,379,396
Our Share of:
Partners' deficit$ (1,247,554)$ (1,180,960)Add: Excess Investment (A)2,773,1731,077,204Our net Investment in unconsolidated entities, at equity$ 1,525,619$ (103,756)
Note: The above financial presentation does not include any information related to our investments in Klépierre, our other platform investments, and our previously held equity investment in TRG up to the October 31, 2025 transaction. For additional information, see footnote B. Simon Property Group, Inc.Unaudited Reconciliation of Non-GAAP Financial Measures (C)(Amounts in thousands, except per share amounts)
Reconciliation of Consolidated Net Income to FFO and Real Estate FFO
For the Three Months Ended
For the Twelve Months Ended
December 31,
December 31,
2025
2024
2025
2024
Consolidated Net Income (D)
$ 3,539,882
$ 771,760
$ 5,364,120
$ 2,729,021Adjustments to Arrive at FFO:
Depreciation and amortization from consolidated
properties
416,707
323,858
1,410,595
1,250,440
Our share of depreciation and amortization from
unconsolidated entities, including Klépierre, TRG and other corporate investments185,527
217,727
811,690
848,188
(Gain) loss on acquisition of controlling interest, sale or disposal of, or recovery on,
assets and interests in unconsolidated entities and impairment, net(2,886,666)
82,570
(2,887,460)
75,818
Net (gain) loss attributable to noncontrolling interest holders in
properties
(4,849)
(92)
(4,815)
1,641
Noncontrolling interests portion of depreciation and amortization(7,563)
(5,950)
(26,322)
(23,367)
Preferred distributions and dividends(1,126)
(1,125)
(4,503)
(4,897)FFO of the Operating Partnership
$ 1,241,912
$ 1,388,748
$ 4,663,305
$ 4,876,844
FFO of the Operating Partnership
$ 1,241,912
$ 1,388,748
$ 4,663,305
$ 4,876,844
Loss (gain) due to disposal, exchange, or revaluation of equity interests, net of tax120,708
(75,340)
66,981
(386,417)
Other platform investments, net of tax(55,474)
(15,187)
(24,590)
88,902
Unrealized losses (gains) in fair value of publicly traded equity instruments and derivative instrument, net21,105
(36,740)
106,082
17,392Real Estate FFO
$ 1,328,251
$ 1,261,481
$ 4,811,778
$ 4,596,721
Diluted net income per share to diluted FFO per share reconciliation:
Diluted net income per share
$ 9.35
$ 2.04
$ 14.17
$ 7.26
Depreciation and amortization from consolidated properties
and our share of depreciation and amortization from unconsolidated
entities, including Klépierre, TRG and other corporate investments, net of noncontrolling
interests portion of depreciation and amortization1.55
1.42
5.81
5.53
(Gain) loss on acquisition of controlling interest, sale or disposal of, or recovery on,
assets and interests in unconsolidated entities and impairment, net(7.63)
0.22
(7.64)
0.20Diluted FFO per share
$ 3.27
$ 3.68
$ 12.34
$ 12.99
Loss (gain) due to disposal, exchange, or revaluation of equity interests, net of tax0.31
(0.20)
0.18
(1.03)
Other platform investments, net of tax(0.15)
(0.04)
(0.07)
0.23
Unrealized losses (gains) in fair value of publicly traded equity instruments and derivative instrument, net0.06
(0.09)
0.28
0.05Real Estate FFO per share
$ 3.49
$ 3.35
$ 12.73
$ 12.24
4.2 %
4.0 %
Details for per share calculations:
FFO of the Operating Partnership
$ 1,241,912
$ 1,388,748
$ 4,663,305
$ 4,876,844Diluted FFO allocable to unitholders
(176,053)
(186,158)
(636,189)
(640,886)Diluted FFO allocable to common stockholders$ 1,065,859
$ 1,202,590
$ 4,027,116
$ 4,235,958
Basic and Diluted weighted average shares outstanding326,180
326,278
326,367
326,097Weighted average limited partnership units outstanding54,039
50,713
51,558
49,338Basic and Diluted weighted average shares and units outstanding380,219
376,991
377,925
375,435
Basic and Diluted FFO per Share
$ 3.27
$ 3.68
$ 12.34
$ 12.99 Percent Change
-11.1 %
-5.0 %
Simon Property Group, Inc.Footnotes to Unaudited Financial Information
Notes:
(A)Excess investment represents the unamortized difference of our investment over equity in the underlying net assets of the related partnerships and joint ventures shown therein. The Company generally amortizes excess investment over the life of the related assets.
(B)The Unaudited Joint Venture Combined Statements of Operations do not include any operations or our share of net income or excess investment amortization related to our investments in Klépierre, our other platform investments and our previously held equity investment in TRG up to the October 31, 2025 transaction. Amounts included in Footnote D below exclude our share of related activity for our investments in Klépierre, our other platform investments and our previously held equity investment in TRG up to the October 31, 2025 transaction. For further information on Klépierre, reference should be made to financial information in Klépierre's public filings and additional discussion and analysis in our Form 10-K.
(C)This report contains measures of financial or operating performance that are not specifically defined by GAAP, including FFO, FFO per share, Real Estate FFO and Real Estate FFO per share. FFO is a performance measure that is standard in the REIT business. We believe FFO provides investors with additional information concerning our operating performance and a basis to compare our performance with those of other REITs. We also use these measures internally to monitor the operating performance of our portfolio. Our computation of these non-GAAP measures may not be the same as similar measures reported by other REITs.
We determine FFO based upon the definition set forth by the National Association of Real Estate Investment Trusts ("NAREIT") Funds From Operations White Paper - 2018 Restatement. Our main business includes acquiring, owning, operating, developing, and redeveloping real estate in conjunction with the rental of retail real estate. Gains and losses of assets incidental to our main business are included in FFO. We determine FFO to be our share of consolidated net income computed in accordance with GAAP, excluding real estate related depreciation and amortization, excluding gains and losses from extraordinary items, excluding gains and losses from the sale, disposal or property insurance recoveries of, or any impairment related to, depreciable retail operating properties, plus the allocable portion of FFO of unconsolidated joint ventures based upon economic ownership interest, and all determined on a consistent basis in accordance with GAAP. However, you should understand that FFO does not represent cash flow from operations as defined by GAAP, should not be considered as an alternative to net income determined in accordance with GAAP as a measure of operating performance, and is not an alternative to cash flows as a measure of liquidity.
(D)Includes our share of:
-Gain on land sales of $6.8 million and $6.6 million for the three months ended December 31, 2025 and 2024, respectively, and $26.5 million and $21.9 million for the twelve months ended December 31, 2025 and 2024, respectively.
-Straight-line adjustments increased income by $10.3 million and $7.3 million for the three months ended December 31, 2025 and 2024, respectively, and $32.2 million and $2.2 million for the twelve months ended December 31, 2025 and 2024, respectively.
-Amortization of fair market value of leases increased income by $0.3 million and $0.4 million for the three months ended December 31, 2025 and 2024, respectively, and $1.2 million and $0.8 million for the twelve months ended December 31, 2025 and 2024, respectively.
View original content to download multimedia:https://www.prnewswire.com/news-releases/simon-reports-fourth-quarter-and-full-year-2025-results-302676635.htmlSOURCE Simon
Original: Simon® Reports Fourth Quarter and Full Year 2025 Results
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