Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Simon Property?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Simon Property (SPG - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $3.25 a share 25 days away from its upcoming earnings release on August 10, 2026.
SPG has an Earnings ESP figure of +2.12%, which, as explained above, is calculated by taking the percentage difference between the $3.25 Most Accurate Estimate and the Zacks Consensus Estimate of $3.18. Simon Property is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
SPG is just one of a large group of Finance stocks with a positive ESP figure. Digital Realty Trust (DLR - Free Report) is another qualifying stock you may want to consider.
Digital Realty Trust is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on July 23, 2026. DLR's Most Accurate Estimate sits at $2.03 a share seven days from its next earnings release.
For Digital Realty Trust, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.98 is +2.30%.
SPG and DLR's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Simon Property Group (NYSE:SPG | SPG Price Prediction) is having the kind of year most REIT investors would celebrate. The stock is up 21.33% year to date through the July 9, 2026 close of $219.71, the dividend yields roughly 4.0%, and Q1 revenue blew past estimates. Wall Street just downgraded it anyway.
The Downgrade: “Fully Valued” On July 9, 2026, Deutsche Bank analyst Omotayo Okusanya cut SPG from Buy to Hold, calling it “fully valued” and setting a $220 price target, essentially matching the current quote. The stock trades near 16x price-to-FFO, a premium to REIT peers. Okusanya wrote that “the premium valuation is warranted, but future stock upside is heavily dependent on earnings growth, which will remain somewhat below recent trend given about 200 bps of FFO/sh earnings growth headwinds in both 2026 and 2027 due to upcoming debt refinancing at higher rates.”
The Refinancing Speed Bump REITs are valued on Funds From Operations (FFO), not EPS, because FFO adds back depreciation charges that real estate accrues on paper even as properties often appreciate. A 200 basis point FFO headwind means growth runs about 2 percentage points slower than otherwise. It is not a loss or dividend cut.
SPG issued $800 million of 5-year senior notes at a 4.300% coupon to repay $800 million of 3.300% notes maturing in 2026, alongside a €500 million euro-denominated unsecured note offering at 3.650% due 2031. With the 10-year Treasury at 4.56%, higher interest expense as low-coupon debt rolls over is unforgiving.
What SPG Actually Is The largest U.S. retail REIT, anchored by Class A malls and Premium Outlets. Q1 2026 revenue hit $1.76 billion, up 19.3% year over year, easily beating the $1.51 billion consensus, though growth was largely driven by Macerich and Taubman acquisitions. GAAP EPS of $1.48 came in fractionally below the $1.49 estimate. Real Estate FFO per share reached $3.17, up 7.5%, and management guided full-year Real Estate FFO to $13.10 to $13.25 per share. Occupancy is 96.0%, base minimum rent per square foot is $61.99, and the redevelopment pipeline targets a 9% stabilized return. Deutsche Bank calls SPG a beneficiary of the K-shaped economy.
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A Leadership Transition Worth Watching Long-time Chairman, CEO and President David Simon passed away on March 22, 2026 at age 64, after a battle with cancer. Eli Simon was appointed CEO and President effective March 23, 2026, while continuing as COO, and Larry Glasscock was appointed Non-Executive Chairman. The new CEO inherits refinancing at scale and a large development pipeline. That is execution risk to monitor.
The Analyst Landscape Consensus is now overwhelmingly Hold. Wolfe Research downgraded to Peer Perform from Outperform on valuation, Morgan Stanley stays Equal Weight with a target of $207, JPMorgan is Neutral at $217, and Argus maintains Buy at $210. For investors interested in how income-focused REITs fit into retirement planning, 24/7 Wall St.’s Paycheck Portfolio Method report frames the tradeoffs.
Bull Case, Bear Case The bull view: a 7.1% dividend hike to $2.25 per share pays investors to wait, the pipeline compounds value, and Class A properties keep defying the death-of-retail narrative. The bear view: at a premium multiple, a two-year growth shortfall is punished harder, and elevated Treasury yields keep rate sensitivity elevated. SPG is a premium-priced operator facing a two-year earnings-growth speed bump. Whether a 4%+ yield plus modest appreciation compensates for valuation risk is the question each investor must answer.
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, /PRNewswire/ -- Simon®, a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations, today announced details for its second quarter earnings release and conference call.
Simon's financial and operational results for the quarter ending June 30, 2026, will be released after the market close on August 10, 2026. Simon will host its quarterly earnings conference call and an audio webcast on August 10 from 5:00 p.m. to 6:00 p.m. Eastern Daylight Time.
The live webcast will be available in listen-only mode at investors.simon.com. Interested parties can join the call by dialing:
1-877-423-9813 United States participants 1-201-689-8573 Participants outside the United States The conference ID for the call is "13761320." An audio replay will be available from approximately 9:00 p.m. Eastern Daylight Time on August 10, 2026 until 11:00 p.m. Eastern Daylight Time on August 17, 2026. The replay can be accessed within the United States by dialing 1-844-512-2921. Callers outside the U.S. can access the replay at 1-412-317-6671. The replay passcode is "13761320." The call will also be archived on investors.simon.com for approximately 90 days.
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 delivered robust Q1 results, raising full-year FFO guidance and demonstrating strong leasing and portfolio growth. SPG's balance sheet remains a core strength, with A credit rating, low leverage at 5.0x, and high fixed-rate debt, supporting future flexibility. The current valuation at 16.01x forward P/FFO appears fully priced, limiting near-term upside and exposing shares to downside risk amid macro uncertainty.
For the quarter ended March 2026, Simon Property (SPG - Free Report) reported revenue of $1.76 billion, up 19.3% over the same period last year. EPS came in at $3.17, compared to $1.27 in the year-ago quarter.
The reported revenue represents a surprise of +12.08% over the Zacks Consensus Estimate of $1.57 billion. With the consensus EPS estimate being $2.98, the EPS surprise was +6.49%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Simon Property performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
U.S. Malls and Premium Outlets - Occupancy - Total Portfolio: 96% compared to the 96.4% average estimate based on two analysts.Revenue- Management fees and other revenues: $40.19 million versus $34.36 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +18.9% change.Revenue- Other income: $88.37 million versus $78.87 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +23.1% change.Revenue- Lease income: $1.63 billion versus the two-analyst average estimate of $1.48 billion. The reported number represents a year-over-year change of +19.1%.Net Earnings Per Share (Diluted): $1.48 versus $1.43 estimated by three analysts on average.View all Key Company Metrics for Simon Property here>>>
Shares of Simon Property have returned +0.8% over the past month versus the Zacks S&P 500 composite's +9.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Retailers are looking to renew their leases on space in malls as much as three years before their current lease expires, Simon Property Group CEO, President and Chief Operating Officer Eli Simon said Monday (May 11).
Simon was speaking during the first quarter earnings call for the company, which owns shopping, dining, entertainment and mixed-use destinations across North America, Europe and Asia.
“What’s interesting when talking to the leasing team is retailers are now wanting to talk about their 2027, 2028, 2029 expirations, which historically might have been more of a luxury tenant phenomenon, who think, much like we do, in terms of decades, not quarter to quarter,” Simon said. “We’re actually hearing from legacy retailers in our existing portfolio, non-luxury, that actually want to start having those conversations because I think they understand this pipeline too and the interest in our space.”
As of the end of the first quarter, March 31, Simon Property Group had recorded year-over-year increases in its U.S. malls and premium outlets operating statistics, according to a Monday earnings release.
Over the year, occupancy rose 10 basis points to 96%, base minimum rent per square foot increased 5.2% to $61.99, and reported retailer sales per square foot rose 11.8% to $819.
U.S. malls and premium outlets accounted for 77.1% of Simon Property Group’s net operating income during the first quarter, according to a supplemental presentation released Monday.
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Simon said during the call that in the first quarter, the company signed more than 1,100 leases totaling over 4.7 million square feet, with about 25% of its leasing volume being new deals. He added that the company has completed more than 75% of its 2026 expirations, which puts it ahead of last year’s pace, and that the pipeline of deals is “significantly larger” than it was at this time last year.
“Occupancy gains, increased shopper traffic and higher retailer sales drove strong cash flow growth in the quarter, reflecting solid fundamentals across all our platforms, the resilience of the consumer, and the strength and breadth of tenant demand we have for our centers,” Simon said. “Retailer demand remains broad-based, spanning new and legacy retailers across a wide range of categories in all of our platforms and geographies.”
Key Takeaways SPG posted Q1 Real Estate FFO of $3.17/share, topping estimates as revenues rose to $1.76B.SPG's U.S. malls and outlets ended at 96% occupancy; base rent rose 5.2% to $61.99/sf.SPG raised 2026 FFO outlook to $13.10-$13.25 and lifted its Q2 dividend to $2.25/share. Simon Property Group, Inc. (SPG - Free Report) started 2026 with a stronger-than-expected first quarter, delivering Real Estate FFO of $3.17 per share. The figure topped the Zacks Consensus Estimate of $2.98 by 6.4% and increased 7.5% year over year. Total revenues of $1.76 billion beat the consensus mark of $1.57 billion by 12.1% and rose 19.3% from the year-ago period.
The quarter reflected steady demand across the portfolio, with U.S. Malls and Premium Outlets ending occupancy at 96%. Management attributed the performance to continued leasing momentum, stronger retailer sales and traffic, and disciplined capital allocation.
Importantly, SPG also paired the solid quarter with a shareholder-friendly move. The company announced a higher quarterly dividend of $2.25 per share for second-quarter 2026 and raised its full-year 2026 Real Estate FFO per share outlook to $13.10-$13.25, signaling confidence in operating momentum for the balance of the year.
SPG's Revenue Mix Shows Broad-Based LiftA key contributor to the quarter was growth across Simon’s core revenue streams. Lease income remained the dominant driver, supported by the company’s scale across malls, outlets and mixed-use destinations.
Beyond core rent, Simon also benefited from higher management fees and other revenues. The combined uplift helped reinforce operating leverage as portfolio-level activity improved.
Simon's Property Metrics Point to Pricing PowerOperating fundamentals remained firm across Simon’s U.S. Malls and Premium Outlets. Base minimum rent per square foot climbed to $61.99 at quarter-end, up 5.2% from a year earlier, reflecting positive leasing spreads and continued tenant demand.
Shopper productivity also continued to improve. Reported retailer sales per square foot rose to $819 for the trailing 12 months ended March 31, 2026, an 11.8% increase year over year. Higher sales and traffic trends typically support leasing velocity and landlord pricing over time.
SPG Highlights NOI Growth and Leasing CadenceOperating performance also translated into stronger property-level profitability. Domestic property net operating income (NOI) increased 6.7% from the prior-year quarter, with portfolio NOI up the same amount, underscoring broad-based improvement across the platform.
On the earnings call, management added color on leasing volume and execution. Simon signed more than 1,100 leases totaling more than 4.7 million square feet during the quarter, with roughly 25% of leasing volume coming from new deals. The company also noted that it had completed more than 75% of its 2026 expirations, positioning it well as the year progresses.
SPG Keeps Liquidity Ample, Taps Multiple MarketsSimon ended the quarter with 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 revolving credit facilities. This level of flexibility supports ongoing investment activity and potential opportunistic capital actions.
During the quarter, the company executed 10 secured loan transactions totaling about $2.3 billion (U.S. dollar equivalent) at a weighted average interest rate of 5.25%. Simon also completed an $800 million senior notes offering with a five-year term and a 4.30% coupon, using proceeds to repay $800 million of notes at maturity. The company amended, restated and extended its $5.0 billion multi-currency revolving credit facility, with an initial maturity of June 30, 2030 and an option to extend to 2031.
Simon Raises 2026 Real Estate FFO OutlookReflecting the stronger start to the year, Simon increased its full-year 2026 Real Estate FFO per share guidance to a range of $13.10-$13.25, lifting the midpoint by 5 cents from the prior outlook of $13.00-$13.25. The Zacks Consensus Estimate of $13.19 is within the guided range.
The company reiterated that it expects an earnings headwind of roughly 25 to 30 cents per share from higher interest expense and lower interest income, with the current environment trending closer to the lower end of that range.
Simon Steps Up Shareholder ReturnsSimon paired operating strength with higher cash returns to shareholders. The board declared a quarterly common stock dividend of $2.25 for the second quarter of 2026, representing a 7.1% year-over-year increase and a 2.3% sequential rise.
The company also remained active on repurchases, buying back 965,296 shares for approximately $175 million during the quarter. The combination of a higher dividend and continued buybacks signals confidence in cash-flow generation and balance sheet flexibility.
SPG’s Zacks RankCurrently, SPG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Retail REITsFederal Realty Investment Trust (FRT - Free Report) reported first-quarter 2026 core FFO per share of $1.88, up 10.6% year over year and ahead of the Zacks Consensus Estimate of $1.82. Total revenues of $341.08 million increased 10.3% year over year and beat the consensus mark of $333.8 million.
Federal Realty’s results were supported by strong leasing momentum and higher comparable property operating income. Federal Realty signed 101 comparable retail leases spanning 649,078 square feet, delivering cash rent spreads of 13% for the quarter.
Regency Centers Corporation (REG - Free Report) reported first-quarter 2026 NAREIT FFO per share of $1.20, missing the Zacks Consensus Estimate of $1.21 by 0.8%. However, the metric increased 4.3% from the year-ago quarter.
Regency Centers’ total revenues came in at $412.5 million, up 8.3% year over year and ahead of the Zacks Consensus Estimate of $400.9 million by 2.9%. Regency Centers’ results were aided by continued leasing traction, as reflected in same-property NOI growth of 4.4% year over year.
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.
Simon Property Group remains a relatively safe investment even with the new CEO, Eli Simon, due to enduring location advantages. Current economic uncertainty and inflation concerns highlight the need for safety and cash reserves. SPG's diversification and prime locations position it for faster recovery compared to industry peers during potential consumer downturns.
Key Takeaways Simon Property Group's strong Q1 results reinforced its leadership in premium retail real estateDespite an extended rally, SPG's valuation is still very reasonable with an enticing dividend above 4%SPG's ROIC highlights efficient capital allocation and durable competitive advantages Simon Property Group's (SPG - Free Report) ) stock has surged back near its 52-week highs after delivering strong Q1 results on Monday evening that reinforced its position as the premier mall REIT in the U.S.
The stock has rallied above $200, supported by resilient consumer spending, high occupancy levels, and improving operating metrics.
The key question for many investors is whether SPG still offers upside at these elevated levels or if the stock is worth holding onto because of its juicy dividend.
Image Source: Zacks Investment Research
SPG’s Q1 Results Show Continued Strength SPG posted stronger-than-expected Q1 2026 results, with earnings and revenue both comfortably ahead of Wall Street expectations. The company reported adjusted EPS of $3.17, which was up 7% from $2.95 per share a year ago and beat expectations of $2.98.
This came on Q1 sales of $1.75 billion, a 19% increase from the prior year quarter, while impressively exceeding estimates of $1.56 billion.
Furthermore, SPG’s strong Q1 results highlighted several encouraging trends: strong leasing demand across premium retail properties, healthy occupancy rates and tenant sales, continued pricing power on rents, and solid cash flow generation despite economic uncertainty.
Most importantly, management maintained a confident tone about the retail environment and the long-term strength of high-quality malls as SPG's portfolio continues to outperform lower-tier retail centers because luxury brands and experiential tenants still want access to its premium locations.
Image Source: Zacks Investment Research
SPG’s Valuation is Still Reasonable Despite an extensive rally in recent years, especially for a REIT stock, SPG does not appear excessively expensive relative to its earnings power and asset quality.
Based on current valuation metrics, SPG trades at a reasonable 15X forward earnings multiple compared to its Zacks REIT and Equity Trust-Retail Industry’s average of 17X and the benchmark S&P 500’s 23X.
Image Source: Zacks Investment Research
Furthermore, Simon Property Group owns some of the highest-quality retail real estate in the world. Its portfolio includes Class A malls, outlet centers, and mixed-use destinations that attract foot traffic even as weaker malls struggle.
This gives SPG stronger pricing power and more resilient occupancy than many retail REIT peers. Unlike many cyclical retail names, SPG generates highly stable rental income. Plus, long-term leases and diversified tenants help smooth earnings through economic cycles.
What may be most appealing is that even after the stock’s strong run, SPG still offers an above-market dividend yield (4.36%), which remains attractive for income-focused investors. The combination of yield plus moderate growth makes SPG appealing in a higher-rate environment.
Image Source: Zacks Investment Research
SPG’s ROIC Suggests Strong Capital AllocationOne of the more compelling aspects of Simon Property Group is its consistently solid return on invested capital (ROIC).
Recent data shows SPG generating ROIC of around 18.5% when excluding dividends, which is very strong for a REIT and above many peers in commercial real estate.
A REIT or any company for that matter with an ROIC near 20% or higher is important because it indicates SPG is deploying capital efficiently, with it noteworthy that management has historically made disciplined acquisitions and redevelopment investments while earning strong returns on its premium properties.
Notably, SPG’s ROIC has remained relatively stable over long periods, even during difficult retail cycles. That consistency suggests the business has durable competitive advantages.
For REIT investors, ROIC is especially valuable because it helps distinguish high-quality property owners from companies merely relying on leverage and asset appreciation.
Image Source: Zacks Investment Research
Risks Investors Should WatchEven high-quality REITs face challenges, and below are the potential challenges that investors should watch for:
Interest Rates
Higher interest rates can pressure REIT valuations because financing costs rise and income-oriented investors gain alternatives in bonds.
Consumer Spending Slowdown
If the economy weakens materially, discretionary retail spending could soften, hurting tenant sales and leasing activity.
E-Commerce Competition
While Simon’s premium malls have proven resilient, the long-term shift toward online shopping remains a structural headwind for retail real estate.
Still, Simon has adapted better than most competitors by emphasizing luxury retail, dining, entertainment, and mixed-use redevelopment.
Is SPG a Buy Near 52-Week Highs?For long-term investors, Simon Property Group still looks attractive despite trading near record levels. In this regard, SPG has strong operating momentum, high-quality assets, reliable dividends, solid ROIC, and reasonable valuation metrics.
Investors seeking a blend of income, stability, and moderate long-term appreciation may still find Simon Property Group's stock appealing. For now, SPG sports a Zacks Rank #2 (Buy).
Three Oversold REITs With Strong FundamentalsSimon Property Group NYSE: SPG reported first-quarter 2026 results that exceeded its internal plan and raised its full-year real estate funds from operations guidance, citing stronger occupancy, higher shopper traffic and accelerating retailer sales across its portfolio.
Eli Simon, the company’s chief executive officer, president and chief operating officer, said the quarter reflected “solid fundamentals across all our platforms, the resilience of the consumer, and the strength and breadth of tenant demand” for Simon’s centers. He also opened the call by thanking those who sent notes following the death of his father, saying his impact on the company and the industry was “truly powerful.”
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FFO Rises as NOI Growth Remains Strong AI Panic Hits Wall Street: 3 Financial Stocks on SaleBrian McDade, executive vice president and chief financial officer, said real estate FFO totaled $1.2 billion, or $3.17 per share, in the first quarter, compared with $1.1 billion, or $2.95 per share, in the prior-year period. That represented 7.5% growth.
McDade said domestic and international operations contributed $0.27 of growth, driven by increased lease income and disciplined cost management. Higher interest expense and lower interest income were a combined $0.05 drag year over year, as expected.
2 REITs That Look Attractive in a Stable Rate EnvironmentReported FFO was $2.91 per share and included $40 million, or $0.10 per share, of accelerated stock compensation expense. McDade said that expense reduced real estate FFO by $0.02 per share and other platform investments, net of tax, by $0.08 per share.
Domestic property net operating income increased 6.7% year over year in the quarter. McDade said approximately 120 basis points of that growth came from Simon’s acquisition of the remaining TRG interests. Portfolio NOI, which includes international properties at constant currency, also grew 6.7%.
The company increased its full-year 2026 real estate FFO guidance to a range of $13.10 to $13.25 per share, compared with $12.73 per share in 2025. McDade said the midpoint of the new range represents a 5% increase from last year.
Leasing Activity and Retailer Sales Accelerate Simon said retailer demand remained broad-based, spanning new and legacy retailers across categories, platforms and geographies. During the first quarter, the company signed more than 1,100 leases totaling over 4.7 million square feet. About 25% of leasing volume came from new deals.
The company has completed more than 75% of its 2026 lease expirations, which Simon said is ahead of where it stood at the same time last year. He said the leasing pipeline is “significantly larger” than a year ago and includes legacy brands, new-to-portfolio concepts, luxury retailers, restaurants and local and regional tenants.
Average base minimum rent for malls and premium outlets increased 5.2% year over year, while mall rent increased 9.1%. Occupancy for malls and premium outlets was 96% at quarter-end, up 10 basis points from a year earlier. McDade said occupancy cost was 12.7%.
Retailer sales at malls and premium outlets were $819 per square foot, up 11.8%. Simon said total sales volume increased 5.6% over the trailing 12 months and 8.8% in the quarter, while comparable sales grew 6.5% in the first quarter. He cited strength in luxury, jewelry, athleisure and juniors.
During the question-and-answer portion of the call, Simon pushed back on the idea that the company has leverage over retailers, saying retailers have multiple options, including online channels. Still, he said tenants increasingly want to discuss lease expirations beyond 2026, including 2027, 2028 and 2029.
Development Pipeline Totals Billions of Dollars Simon said the company has projects under construction at 29 centers, with its share of net costs at $1.06 billion and a blended yield of 9%. About half of the net cost is tied to mixed-use projects, including roughly 1,200 multifamily units at Brea Mall, Briarwood Mall and Northgate, along with more than 400 hotel keys at Northshore Mall, Roosevelt Field and The Domain.
The company also has redevelopments of former anchor boxes underway at Brea Mall and the Fashion Mall at Keystone, where it plans to add retail, restaurants, entertainment and fitness uses.
Simon said an additional $1 billion of projects could begin construction this year, including new developments, anchor redevelopments and international redevelopments and expansions. Beyond that, he said Simon has about $3 billion of projects in its pipeline that could start over the next several years.
He said the projects will be funded from internally generated cash flow and emphasized that the company has flexibility to adjust timing based on construction costs or market conditions. “We can be patient,” Simon said, adding that the company can also invest counter-cyclically.
Dividend Raised, Buybacks Continue Simon announced a second-quarter dividend of $2.25 per share, up $0.15, or 7.1%, from the prior-year period. The dividend is payable June 30.
The company repurchased approximately 965,000 shares of common stock in the first quarter for $175 million, at an average purchase price of $181.59. Simon said the company expects to continue to be active on buybacks but will remain prudent depending on market conditions.
On the balance sheet, McDade said Simon completed 10 secured loan transactions totaling about $2.3 billion at a weighted average interest rate of 5.25%. The company also issued $800 million of senior notes to repay $800 million of notes that matured Jan. 15 and amended, restated and extended its $5 billion revolving credit facility at a 15-basis-point lower pricing grid.
Simon ended the quarter with approximately $8.7 billion of liquidity. McDade said net debt to EBITDA was 5.0 times and the fixed charge coverage ratio was 4.6 times.
Consumer Trends and Portfolio Strategy Asked about the consumer, Simon said sales growth was broad-based, with the upper-end consumer performing well and hard luxury, jewelry and watches showing strong growth. He also cited strength in juniors brands that target Gen Z shoppers.
Food and beverage was “a touch softer,” Simon said, with comparable performance roughly flat. He also noted softness in tourist markets that rely on European and Canadian international travelers, while Florida markets, including Orlando, remained strong.
On leadership and capital allocation, Simon said the company is operating “business as usual” and does not expect a change in strategy. He said Simon will continue to evaluate development, acquisitions, share repurchases and dividends based on returns and shareholder value.
Simon also discussed the integration of Taubman assets, saying corporate integration was effectively completed by the end of April. He said the company is focused on reinvesting in assets including Green Hills in Nashville, International Plaza in Tampa and Cherry Creek in Denver, with more than $250 million of planned investment beginning later this year.
About Simon Property Group NYSE: SPGSimon Property Group, Inc NYSE: SPG is a publicly traded real estate investment trust (REIT) that owns, develops and manages retail real estate properties. Its core business activities include acquisition, development, leasing and property management of regional malls, outlet centers and mixed‑use retail destinations. The company operates retail brands that include high‑profile regional shopping centers and the Premium Outlets platform, and it provides services such as tenant leasing, marketing, property operations and capital projects to optimize asset performance.
Simon's portfolio spans a broad mix of enclosed malls, open‑air centers, outlet properties and mixed‑use developments, and the company pursues redevelopment and repositioning to adapt properties to changing consumer and retail trends.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Key Takeaways O raised its 2026 investment target to $9.5B from $8.0B after deploying $2.8B in Q1.O's Q1 mix: $1.58B acquisitions, $155.8M development, plus $1.03B in loans and financing.O added an Apollo JV and a $1.7B fund raise; Q1 AFFO/share was $1.13, and occupancy hit 98.9%. Realty Income’s (O - Free Report) higher 2026 investment target looks like a clear vote of confidence in its deal pipeline. The REIT lifted expected investment volume to $9.5 billion from $8.0 billion after putting $2.8 billion to work in the first quarter, including $2.6 billion at its pro-rata share.
The company’s investments were not limited to one track. In the first quarter, Realty Income completed $1.58 billion of real estate acquisitions, added $155.8 million in development-related investments and made about $1.03 billion of other investments, including loans and construction financing. This mix shows a wider approach than simply buying more stores or warehouses.
Management is also leaning harder into structured investments. On the call, Realty Income said that credit deals are often designed with a path toward owning the real estate later. This includes a data center loan in Virginia and construction-related investments tied to its GIC partnership in Mexico, giving the company a way to enter projects before assets are fully stabilized.
Private capital is becoming an important support for this bigger investment plan. Realty Income formed a $1.0 billion Apollo-backed joint venture involving 492 retail properties and completed a $1.7 billion cornerstone capital raise for its U.S. Core Plus fund. These channels give the company more funding options beyond public equity markets.
The raised target also comes with operating support. AFFO per share rose 6.6% year over year to $1.13 in the first quarter, occupancy stayed at 98.9%, and rent recapture reached 103.4%. With $3.9 billion of available liquidity and leverage at 5.2X net debt to annualized pro forma adjusted EBITDAre, Realty Income appears to have room to keep investing while staying selective.
How Are SPG and FRT Investing for Growth?Simon Property Group (SPG - Free Report) is investing through development and redevelopment rather than chasing volume. Simon Property Group has projects under construction at 29 centers, with $1.06 billion of net cost and a 9% blended yield. Simon Property Group also sees another $1 billion able to start this year, which the company is funding internally.
Federal Realty (FRT - Free Report) is using capital recycling and targeted acquisitions to sharpen growth. It sold assets for $159 million, then bought Congressional North for $72 million at a 7% stabilized yield. Federal Realty has $400 million allocated to residential projects adding nearly 800 units. Federal Realty expects $27 million income stabilized.
O’s Price Performance, Valuation and EstimatesShares of Realty Income have gained 10.1% so far this year, underperforming the industry’s growth of 17%.
Image Source: Zacks Investment Research
From a valuation standpoint, O trades at a forward 12-month price-to-FFO of 13.81, below the industry but ahead of its one-year median of 13.44. It carries a Value Score of D.
Image Source: Zacks Investment Research
Over the past 30 days, estimates for both 2026 and 2027 FFO per share have been revised slightly downward.
Immersive fan experiences, exclusive retail, and high-energy events bring soccer excitement to Simon destinations nationwide
, /PRNewswire/ -- Simon®, a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment, and mixed-use destinations, is teaming up with adidas® to bring soccer fan experiences and programming to select Simon destinations this summer.
From large-scale block party experiences, to soccer watch parties, and exclusive adidas product releases and immersive in-store activations, these experiences are designed to bring the energy and culture of the global game to life.
Soccer at Simon adidas will host events at Del Amo Fashion Center® (June 14), Houston Premium Outlets® (June 18), Sawgrass Mills® (June 27), and Phipps Plaza® (July 15). Each event will feature interactive fan zones, adidas product experiences, and DJ performances, creating family-friendly environments that reflect soccer's vibrant, international spirit.
A larger-than-life adidas Match Ball installation will serve as a centerpiece of each block party and travel to additional Simon locations throughout the summer, offering fans an interactive, photo-driven moment inspired by the sport.
"Together with adidas we're creating an unforgettable fan experience across Simon destinations nationwide," said Lee Sterling, Simon's Chief Marketing Officer. "With adidas's deep connection to soccer and Simon's unmatched national reach, we're delivering engaging experiences that connect communities through a shared love of the game."
In addition to live events in select markets, adidas retail locations at 90 Simon centers will offer enhanced in-store activations, including limited-edition product, collectible merchandise, and scratch-off prizes with qualifying purchases extending fan engagement across the country.
This summer, Simon destinations will serve as gathering places for fans to experience the excitement, culture, and creativity inspired by soccer.
About adidas at Simon
adidas operates stores at approximately 90 Simon centers nationwide, offering soccer footwear, apparel, and accessories.
About Simon
Simon® is a real estate investment trust engaged in the ownership of premier shopping, dining, and entertainment 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. For more information, visit simon.com.
Simon Property Group (SPG) remains a Buy, supported by robust Q1 results, a guidance boost, and a sustainable, growing dividend. SPG's accretive growth pipeline, 9% blended yield on $1.06B in projects, and low-rate debt underpin long-term value creation. Net debt/EBITDA at 5.0x and a recently extended $5B credit facility reinforce SPG's financial strength amid macro headwinds.
The fifth annual signature event, that rivals Black Friday, returns this summer with the best-ever deals and experiences from over 500 participating brands
, /PRNewswire/ -- Simon® a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations, today announced the return of the shopping event of the summer, National Outlet Shopping Day®, June 11-14, across Premium Outlets® and The Mills® locations nationwide.
Simon Premium Outlets and The Mills are America's premier outlet shopping destinations, home to thousands of the world's most sought-after brands and an unparalleled collection of luxury and designer outlet stores.
National Outlet Shopping Day® National Outlet Shopping Day returns to 90 locations nationwide, inviting shoppers to enjoy exceptional savings at destinations that are conveniently located near many of the country's most visited cities and travel hubs. From iconic properties such as Woodbury Common® one of the nation's top outlet centers located just one hour from New York City with 250+ stores set against the backdrop of the Hudson Valley; Desert Hills® roughly an hour from Los Angeles and home to 180+ stores in a striking desert landscape; and Sawgrass Mills®, one of the most impressive value retail shopping destinations in the country with 350+ stores, located in sunny Sunrise, FL. Simon's portfolio spans some of the highest performing and picturesque retail environments in the U.S.
Celebrating its fifth anniversary, this year's National Outlet Shopping Day will feature more exclusive offers than ever before, with around 6,000 offers from over 500 brands*. Shoppers can take advantage of a wide range of promotions, including discounts, deals, and gifts with purchase. Highlights include up to 40% off, 20% off $100 purchases, and buy one, get one offers on select food, services, and merchandise.
Simon+® members will receive double points on qualifying purchases all weekend and enjoy exclusive gifts and experiences with purchase*, including premium brand giveaways, VIP lounge access, customization stations, and complimentary tote bags while supplies last.
The event has experienced remarkable growth, with a more than 65% increase in shopper participation since its inaugural year, extending the experience to millions more consumers nationwide and underscoring the enduring appeal of Simon Premium Outlets and The Mills.
"National Outlet Shopping Day has become one of the most anticipated shopping events of the year because it's the perfect way to kick off summer," said Lee Sterling, Simon's Chief Marketing Officer. "Shoppers enjoy unreal deals from the world's best brands and score a fashion haul right before the barbeques and beach vacations. But it's the energy and excitement that truly sets the day apart. It's a celebration of savings, style, and of spending time together."
More than a savings event, National Outlet Shopping Day is a celebration of the shopping experience. Whether finding the perfect look, getting a second opinion from a friend, grabbing a coffee at one of the new Coach Coffee Shops, or capturing memories along the way, Simon offers an experience that makes every visit memorable.
For more information about National Outlet Shopping Day 2026 and to find participating locations, visit here. To stay on top of all the latest styles, offers and events, follow @theoutlets on Instagram and TikTok.
*Deals, experiences, and giveaways vary by property and Rewards Program Terms apply to participation in and the awarding of points and other benefits of Simon+.
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.
, /PRNewswire/ -- Simon Property Group, L.P., a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations (the "Company"), today announced that its indirect subsidiary, Simon Global Development B.V., incorporated as a private limited liability company (besloten vennootschap met beperkte aansprakelijkheid) registered with the Dutch Trade Register of the Chamber of Commerce (the "Issuer"), has agreed to sell €500,000,000 principal amount of its 3.650% unsecured notes due 2031 (the "Notes") in an offering to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). The Notes will be fully and unconditionally guaranteed by the Company. This offering is expected to close on June 15, 2026, subject to customary closing conditions. The Notes are expected to be admitted on the Official List of the Luxembourg Stock Exchange and to trading on the Euro MTF Market.
The Company currently expects to use the net proceeds from the offering for general corporate purposes.
The Notes to be offered have not been, and will not be, registered under the Securities Act or applicable state or other securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the Notes or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
This press release has been prepared on the basis that any offer of the securities in any Member State of the European Economic Area ("EEA") (each, a "Relevant State") will be made pursuant to an exemption under Regulation (EU) 2017/1129, as amended (the "Prospectus Regulation"), from the requirement to publish a prospectus for offers of securities and in the United Kingdom will be made pursuant to an exception to the prohibition on public offers under the Public Offers and Admissions to Trading Regulations 2024.
In the United Kingdom, this press release is only being distributed to, and is only directed at, persons (i) that are "investment professionals" falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Order"), (ii) falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations, etc.") of the Order, or (iii) to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000, as amended) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "Relevant Persons"). This press release is directed only at Relevant Persons and must not be acted on or relied upon by persons who are not Relevant Persons. Any investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.
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 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 the Company's 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 the Company to the extent impacting its 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 the Company's properties; the availability of comprehensive insurance coverage; security breaches that could compromise the Company's information technology or infrastructure; changes in market rates of interest; the Company's international activities subjecting it to risks that are different from or greater than those associated with the Company's domestic operations, including changes in foreign exchange rates; the impact of the Company's substantial indebtedness on its future operations, including covenants in the governing agreements that impose restrictions on it that may affect the Company's ability to operate freely; any disruption in the financial markets that may adversely affect the Company's ability to access capital for growth and satisfy its ongoing debt service requirements; any change in the Company's credit rating or outlook; the Company's continued ability to maintain Company's status as a real estate investment trust (a "REIT") for U.S. federal income tax purposes; 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 the Company's 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 the Company's business, financial condition, results of operations, cash flows 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 global leader 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.
It has been about a month since the last earnings report for Simon Property (SPG - Free Report) . Shares have added about 3% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Simon Property due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Simon Property Q1 FFO Tops Estimates, Dividend and Guidance RaisedSimon Property Group started 2026 with a stronger-than-expected first quarter, delivering Real Estate FFO of $3.17 per share. The figure topped the Zacks Consensus Estimate of $2.98 by 6.4% and increased 7.5% year over year. Total revenues of $1.76 billion beat the consensus mark of $1.57 billion by 12.1% and rose 19.3% from the year-ago period.
The quarter reflected steady demand across the portfolio, with U.S. Malls and Premium Outlets ending occupancy at 96%. Management attributed the performance to continued leasing momentum, stronger retailer sales and traffic, and disciplined capital allocation.
Importantly, Simon Property also paired the solid quarter with a shareholder-friendly move. The company announced a higher quarterly dividend of $2.25 per share for the second quarter of 2026 and raised its full-year 2026 Real Estate FFO per share outlook to $13.10-$13.25, signaling confidence in operating momentum for the balance of the year.
Simon Property's Revenue Mix Shows Broad-Based LiftA key contributor to the quarter was growth across Simon’s core revenue streams. Lease income remained the dominant driver, supported by the company’s scale across malls, outlets and mixed-use destinations.
Beyond core rent, Simon also benefited from higher management fees and other revenues. The combined uplift helped reinforce operating leverage as portfolio-level activity improved.
Simon's Property Metrics Point to Pricing PowerOperating fundamentals remained firm across Simon’s U.S. Malls and Premium Outlets. Base minimum rent per square foot climbed to $61.99 at quarter-end, up 5.2% from a year earlier, reflecting positive leasing spreads and continued tenant demand.
Shopper productivity also continued to improve. Reported retailer sales per square foot rose to $819 for the trailing 12 months ended March 31, 2026, an 11.8% increase year over year. Higher sales and traffic trends typically support leasing velocity and landlord pricing over time.
Simon Property Highlights NOI Growth and Leasing CadenceOperating performance also translated into stronger property-level profitability. Domestic property NOI increased 6.7% from the prior-year quarter, with portfolio NOI up the same amount, underscoring broad-based improvement across the platform.
On the earnings call, management added color on leasing volume and execution. Simon signed more than 1,100 leases totaling more than 4.7 million square feet during the quarter, with roughly 25% of leasing volume coming from new deals. The company also noted that it had completed more than 75% of its 2026 expirations, positioning it well as the year progresses.
Simon Property Keeps Liquidity Ample, Taps Multiple MarketsSimon ended the quarter with 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 revolving credit facilities. This level of flexibility supports ongoing investment activity and potential opportunistic capital actions.
During the quarter, the company executed 10 secured loan transactions totaling about $2.3 billion (U.S. dollar equivalent) at a weighted average interest rate of 5.25%. Simon also completed an $800 million senior notes offering with a five-year term and a 4.30% coupon, using proceeds to repay $800 million of notes at maturity. The company amended, restated and extended its $5 billion multi-currency revolving credit facility, with an initial maturity of June 30, 2030, and an option to extend to 2031.
Simon Raises 2026 Real Estate FFO OutlookReflecting the stronger start to the year, Simon increased its full-year 2026 Real Estate FFO per share guidance to a range of $13.10-$13.25, lifting the midpoint by 5 cents from the prior outlook of $13.00-$13.25.
The company reiterated that it expects an earnings headwind of roughly 25 to 30 cents per share from higher interest expense and lower interest income, with the current environment trending closer to the lower end of that range.
Simon Steps Up Shareholder ReturnsSimon paired operating strength with higher cash returns to shareholders. The board declared a quarterly common stock dividend of $2.25 for the second quarter of 2026, representing a 7.1% year-over-year increase and a 2.3% sequential rise.
The company also remained active on repurchases, buying back 965,296 shares for approximately $175 million during the quarter. The combination of a higher dividend and continued buybacks signals confidence in cash-flow generation and balance sheet flexibility.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresAt this time, Simon Property has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Simon Property has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerSimon Property belongs to the Zacks REIT and Equity Trust - Retail industry. Another stock from the same industry, Federal Realty Investment Trust (FRT - Free Report) , has gained 7.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Federal Realty Investment Trust reported revenues of $341.08 million in the last reported quarter, representing a year-over-year change of +10.3%. EPS of $1.81 for the same period compares with $1.70 a year ago.
For the current quarter, Federal Realty Investment Trust is expected to post earnings of $1.85 per share, indicating a change of -3.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
Federal Realty Investment Trust has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
