Original source text
, /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, 2026.
"We delivered excellent financial and operational results this quarter," said Eli Simon, Chief Executive Officer, President and Chief Operating Officer. "Real Estate FFO per share grew 7.9% year-over-year, supported by consistent broad-based leasing demand, accelerated traffic increases, strong retailer sales growth, and the contribution from acquisitions completed over the past year. Today, we are once again increasing our guidance for full-year 2026 Real Estate FFO per share."
Results for the Quarter
Net income attributable to common stockholders was $483.1 million, or $1.49 per diluted share, as compared to $556.1 million, or $1.70 per diluted share in 2025. Net income for the second quarter of 2025 included a non-cash after-tax gain of $0.21 per diluted share from investment activity. Real Estate Funds From Operations ("Real Estate FFO") was $1.249 billion, or $3.29 per diluted share as compared to $1.154 billion, or $3.05 per diluted share in the prior year, an increase of 7.9%. Funds From Operations ("FFO") was $1.185 billion, or $3.12 per diluted share as compared to $1.189 billion, or $3.15 per diluted share in the prior year, inclusive of the $0.21 per diluted share non-cash after-tax gain in the prior year period. Domestic property Net Operating Income ("NOI") increased 8.5% and portfolio NOI increased 8.3% compared to the prior year period. Results for the Six Months
Net income attributable to common stockholders was $962.7 million, or $2.97 per diluted share, as compared to $969.8 million, or $2.97 per diluted share in 2025. Real Estate FFO was $2.457 billion, or $6.46 per diluted share as compared to $2.268 billion, or $6.01 per diluted share in the prior year, an increase of 7.5%. FFO was $2.293 billion, or $6.03 per diluted share as compared to $2.194 billion, or $5.82 per diluted share in the prior year. Domestic property NOI increased 7.6% and portfolio NOI increased 7.5% compared to the prior year period. U.S. Malls and Premium Outlets Operating Statistics
Occupancy at June 30, 2026 was 96.0%, unchanged from June 30, 2025. Base minimum rent per square foot was $62.42 at June 30, 2026, compared to $58.70 at June 30, 2025, an increase of 6.3%. Reported retailer sales per square foot was $838 for the trailing 12 months ended June 30, 2026, compared to $736 at June 30, 2025, an increase of 13.9%. Dividends
Today, Simon's Board of Directors declared a quarterly common stock dividend of $2.25 for the third quarter of 2026. This is an increase of $0.10, or 4.7% year-over-year. The dividend will be payable on September 30, 2026 to shareholders of record on September 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 September 30, 2026 to shareholders of record on September 16, 2026.
Common Stock Repurchase Program
During the quarter ended June 30, 2026, the Company repurchased 793,077 shares of its common stock and 237,618 limited partnership units at an average price of $205.10 per share/unit, for a total investment of $211.4 million.
Capital Markets and Balance Sheet Liquidity
During the quarter, the Company completed 8 secured loan transactions totaling approximately $1.4 billion (U.S. dollar equivalent). The weighted average interest rate on these loans was 5.36%.
The Company completed a Euro senior notes offering totaling €500 million with a 3.65% coupon rate and term of 5 years. Proceeds were used for general corporate purposes.
Additionally, the Company closed a $460 million 5-year term loan priced at SOFR +0.70%. Proceeds were used to repay the $460 million draw under the Company's $5 billion revolving credit facility.
As of June 30, 2026, Simon had approximately $9.3 billion of liquidity consisting of $1.7 billion of cash on hand, including its share of joint venture cash, and $7.6 billion of available capacity, net of outstanding commercial paper, under its $8.5 billion of total 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 full year 2026 Real Estate FFO per diluted share to $13.20 to $13.30, an increase of $0.08 per diluted share at the midpoint.
Current
Previous
Low End
High End
Low End
High End
Estimated net income attributable to
common stockholders per diluted share
$6.47
$7.47
$6.61
$6.76
Estimated Real Estate FFO per share
$13.20
$13.30
$13.10
$13.25
Conference 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, August 10, 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 August 17, 2026. To access the audio replay, dial 1-844-512-2921 (international +1-412-317-6671) passcode 13761320.
Supplemental Materials and Website
Supplemental information on our second 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
For the Six Months
Ended June 30,
Ended June 30,
2026
2025
2026
2025
REVENUE:
Lease income
$ 1,659,709
$ 1,379,454
$ 3,288,240
$ 2,746,882
Management fees and other revenues
40,834
37,931
81,022
71,723
Other income
90,055
81,074
178,429
152,867
Total revenue
1,790,598
1,498,459
3,547,691
2,971,472
EXPENSES:
Property operating
171,440
139,816
342,200
276,637
Depreciation and amortization
459,876
339,058
918,773
667,109
Real estate taxes
131,905
105,315
267,865
212,768
Repairs and maintenance
32,687
26,238
72,888
56,380
Advertising and promotion
39,056
36,310
72,986
70,566
Home and regional office costs
69,842
57,564
137,498
122,630
General and administrative
12,004
14,298
66,303
26,927
Other
49,690
35,663
82,918
66,641
Total operating expenses
966,500
754,262
1,961,431
1,499,658
OPERATING INCOME BEFORE OTHER ITEMS
824,098
744,197
1,586,260
1,471,814
Interest expense
(281,164)
(232,724)
(556,826)
(459,720)
(Loss) gain due to disposal, exchange, or revaluation of equity interests, net
(11,950)
104,499
(18,329)
80,507
Income and other tax (expense) benefit
(10,809)
(35,107)
9,125
(27,470)
Income from unconsolidated entities
119,127
122,875
97,879
153,234
Unrealized losses in fair value of publicly traded equity instruments and
derivative instrument, net
(56,425)
(50,455)
(31,037)
(87,220)
(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on,
assets and interests in unconsolidated entities and impairment, net
(8,747)
(9,604)
55,593
(9,604)
CONSOLIDATED NET INCOME
574,130
643,681
1,142,665
1,121,541
Net income attributable to noncontrolling interests
90,157
86,714
178,288
150,040
Preferred dividends
834
834
1,669
1,669
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
$ 483,139
$ 556,133
$ 962,708
$ 969,832
BASIC AND DILUTED EARNINGS PER COMMON SHARE:
Net income attributable to common stockholders
$ 1.49
$ 1.70
$ 2.97
$ 2.97
Simon Property Group, Inc.
Unaudited Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
June 30,
December 31,
2026
2025
ASSETS:
Investment properties, at cost
$ 51,094,995
$ 50,946,067
Less - accumulated depreciation
21,382,543
20,701,510
29,712,452
30,244,557
Cash and cash equivalents
1,019,091
823,147
Tenant receivables and accrued revenue, net
884,241
934,077
Investment in other unconsolidated entities, at equity
4,012,480
4,362,339
Investment in Klépierre, at equity
1,377,318
1,505,377
Right-of-use assets, net
731,200
755,934
Deferred costs and other assets
1,972,484
1,981,035
Total assets
$ 39,709,266
$ 40,606,466
LIABILITIES:
Mortgages and unsecured indebtedness
$ 28,699,607
$ 28,430,175
Accounts payable, accrued expenses, intangibles, and deferred revenues
1,806,922
1,954,402
Cash distributions and losses in unconsolidated entities, at equity
1,808,807
1,739,418
Dividend payable
1,318
2,723
Lease liabilities
727,902
756,539
Other liabilities
818,183
1,017,816
Total liabilities
33,862,739
33,901,073
Commitments and contingencies
Limited partners' preferred interest in the Operating Partnership and noncontrolling
redeemable interests
271,827
233,306
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 $39,847
40,287
40,451
Common stock, $0.0001 par value, 511,990,000 shares authorized, 343,059,947 and
343,060,687 issued and outstanding, respectively
33
33
Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000
issued and outstanding
-
-
Capital in excess of par value
12,394,125
12,347,192
Accumulated deficit
(5,128,188)
(4,608,136)
Accumulated other comprehensive loss
(233,740)
(251,361)
Common stock held in treasury, at cost, 19,508,432 and 17,844,817 shares, respectively
(2,638,101)
(2,319,911)
Total stockholders' equity
4,434,416
5,208,268
Noncontrolling interests
1,140,284
1,263,819
Total equity
5,574,700
6,472,087
Total liabilities and equity
$ 39,709,266
$ 40,606,466
Simon Property Group, Inc.
Unaudited Joint Venture Combined Statements of Operations
(Dollars in thousands)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
2026
2025
2026
2025
REVENUE:
Lease income
$ 937,653
$ 757,888
$ 1,859,445
$ 1,507,695
Other income
103,708
112,941
208,889
207,008
Total revenue
1,041,361
870,829
2,068,334
1,714,703
OPERATING EXPENSES:
Property operating
201,456
165,960
416,398
332,607
Depreciation and amortization
177,211
159,675
362,376
318,687
Real estate taxes
67,310
58,606
133,709
117,398
Repairs and maintenance
23,159
18,204
49,440
38,967
Advertising and promotion
25,085
22,474
50,018
44,623
Other
67,184
61,308
139,469
118,155
Total operating expenses
561,405
486,227
1,151,410
970,437
OPERATING INCOME BEFORE OTHER ITEMS
479,956
384,602
916,924
744,266
Interest expense
(205,540)
(174,995)
(410,577)
(345,363)
NET INCOME
$ 274,416
$ 209,607
$ 506,347
$ 398,903
Third-Party Investors' Share of Net Income
$ 142,119
$ 107,651
$ 258,581
$ 204,248
Our Share of Net Income
132,297
101,956
247,766
194,655
Amortization of Excess Investment (A)
(48,684)
(13,871)
(96,341)
(28,336)
Income from Unconsolidated Entities (B)
$ 83,613
$ 88,085
$ 151,425
$ 166,319
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)
June 30,
December 31,
2026
2025
Assets:
Investment properties, at cost
$ 21,519,924
$ 22,077,749
Less - accumulated depreciation
10,083,799
9,020,481
11,436,125
13,057,268
Cash and cash equivalents
1,511,847
1,264,619
Tenant receivables and accrued revenue, net
599,064
605,756
Right-of-use assets, net
111,163
108,349
Deferred costs and other assets
645,256
572,826
Total assets
$ 14,303,455
$ 15,608,818
Liabilities and Partners' Deficit:
Mortgages
$ 16,605,493
$ 16,374,773
Accounts payable, accrued expenses, intangibles, and deferred revenue
1,149,481
1,117,855
Lease liabilities
112,971
99,837
Other liabilities
377,817
334,246
Total liabilities
18,245,762
17,926,711
Preferred units
67,450
67,450
Partners' deficit
(4,009,757)
(2,385,343)
Total liabilities and partners' deficit
$ 14,303,455
$ 15,608,818
Our Share of:
Partners' deficit
$ (1,805,176)
$ (1,247,554)
Add: Excess Investment
3,055,376
2,773,173
Our net Investment in unconsolidated entities, at equity
$ 1,250,200
$ 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
For the Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Consolidated Net Income (D)
$ 574,130
$ 643,681
$ 1,142,665
$ 1,121,541
Adjustments to Arrive at FFO:
Depreciation and amortization from consolidated
properties
455,655
335,157
910,434
659,479
Our share of depreciation and amortization from
unconsolidated entities, including Klépierre, TRG and other corporate investments
160,762
207,587
322,370
416,551
Loss (gain) on acquisition of controlling interest, sale or disposal of, or recovery on,
assets and interests in unconsolidated entities and impairment, net
8,747
9,604
(55,593)
9,604
Net (gain) loss attributable to noncontrolling interest holders in
properties
(6,400)
(26)
(12,021)
1,266
Noncontrolling interests portion of depreciation and amortization
(6,917)
(6,346)
(13,202)
(12,339)
Preferred distributions and dividends
(1,032)
(1,126)
(2,064)
(2,252)
FFO of the Operating Partnership (1)
$ 1,184,945
$ 1,188,531
$ 2,292,589
$ 2,193,850
FFO of the Operating Partnership (1)
$ 1,184,945
$ 1,188,531
$ 2,292,589
$ 2,193,850
Loss (gain) due to disposal, exchange, or revaluation of equity interests, net of tax
9,818
(78,374)
15,136
(60,381)
Other platform investments, net of tax
(2,624)
(6,594)
117,758
47,591
Unrealized losses in fair value of publicly traded equity instruments and derivative instrument, net
56,425
50,455
31,037
87,220
Real Estate FFO (1)
$ 1,248,564
$ 1,154,018
$ 2,456,520
$ 2,268,280
Diluted net income per share to diluted FFO per share reconciliation:
Diluted net income per share
$ 1.49
$ 1.70
$ 2.97
$ 2.97
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 amortization
1.61
1.42
3.21
2.82
Loss (gain) on acquisition of controlling interest, sale or disposal of, or recovery on,
assets and interests in unconsolidated entities and impairment, net
0.02
0.03
(0.15)
0.03
Diluted FFO per share (1)
$ 3.12
$ 3.15
$ 6.03
$ 5.82
Loss (gain) due to disposal, exchange, or revaluation of equity interests, net of tax
0.03
(0.21)
0.04
(0.16)
Other platform investments, net of tax
(0.01)
(0.02)
0.31
0.12
Unrealized losses in fair value of publicly traded equity instruments and derivative instrument, net
0.15
0.13
0.08
0.23
Real Estate FFO per share (1)
$ 3.29
$ 3.05
$ 6.46
$ 6.01
7.9 %
7.5 %
Details for per share calculations:
FFO of the Operating Partnership
$ 1,184,945
$ 1,188,531
$ 2,292,589
$ 2,193,850
Diluted FFO allocable to unitholders
(174,687)
(159,806)
(336,951)
(295,091)
Diluted FFO allocable to common stockholders
$ 1,010,258
$ 1,028,725
$ 1,955,638
$ 1,898,759
Basic and Diluted weighted average shares outstanding
324,018
326,487
324,458
326,401
Weighted average limited partnership units outstanding
56,029
50,714
55,903
50,727
Basic and Diluted weighted average shares and units outstanding
380,047
377,201
380,361
377,128
Basic and Diluted FFO per Share
$ 3.12
$ 3.15
$ 6.03
$ 5.82
Percent Change
-1.0 %
3.6 %
(1)
FFO and Diluted FFO per share includes $40.0 million, or $0.10 per share, of accelerated stock compensation expense recorded in the first quarter of 2026, 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 $0.0 million and $1.2 million for the three months ended June 30, 2026 and 2025, respectively, and $1.8 million and $1.2 million for the six months ended June 30, 2026 and 2025, respectively.
-
Straight-line adjustments increased income by $19.0 million and $3.7 million for the three months ended June 30, 2026 and 2025, respectively, and $24.9 million and $5.9 million for the six months ended June 30, 2026 and 2025, respectively.
-
Amortization of fair market value of leases increased income by $0.4 million and $0.3 million for the three months ended June 30, 2026 and 2025, respectively, and $0.6 million and $0.6 million for the six months ended June 30, 2026 and 2025, respectively.
SOURCE Simon
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