Core Insights - The article emphasizes the importance of dividend investing in quality blue-chip stocks, BDCs, and REITs for building a sustainable retirement income [1][2]. Group 1: Investment Strategy - The company adopts a buy-and-hold investment strategy, focusing on quality over quantity in its portfolio [1]. - The goal is to help lower and middle-class workers build investment portfolios that consist of high-quality, dividend-paying companies [1]. Group 2: Personal Investment Philosophy - The company aims to achieve financial independence through dividend income within the next 5-7 years [1]. - There is a strong emphasis on educating investors to conduct their own due diligence before making investment decisions [1].

INDIANAPOLIS, Aug. 7, 2025 /PRNewswire/ -- Simon®, a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations, today announced that Eli Simon, Executive Vice President, Chief Investment Officer and Director has been promoted to Chief Operating Officer. Eli will work directly with David Simon, Chairman, Chief Executive Officer and President, on all aspects of Simon's businesses including property performance, new development projects, the com ...

[Part I — Financial Information](index=5&type=section&id=Part%20I%20%E2%80%94%20Financial%20Information) [Item 1. Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The report presents unaudited consolidated financial statements for Simon and its Operating Partnership [Consolidated Financial Statements of Simon Property Group, Inc.](index=6&type=section&id=Consolidated%20Financial%20Statements%20of%20Simon%20Property%20Group%2C%20Inc.) Simon Property Group, Inc. reported lower net income and EPS for H1 2025 despite an increase in total assets Simon Property Group, Inc. - Key Financials (Six Months Ended June 30, in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Total Revenue** | $2,971.5 | $2,900.9 | | **Consolidated Net Income** | $1,121.5 | $1,410.6 | | **Net Income Attributable to Common Stockholders** | $969.8 | $1,225.2 | | **Diluted EPS** | $2.97 | $3.76 | Simon Property Group, Inc. - Balance Sheet Summary (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $33,295.6 | $32,405.7 | | **Total Liabilities** | $30,204.5 | $28,806.2 | | **Total Stockholders' Equity** | $2,451.5 | $2,941.9 | Simon Property Group, Inc. - Cash Flow Summary (Six Months Ended June 30, in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $2,042.6 | $1,836.3 | | **Net Cash (Used in) Provided by Investing Activities** | $(1,088.4) | $588.2 | | **Net Cash Used in Financing Activities** | $(1,123.0) | $(2,359.0) | | **(Decrease) Increase in Cash** | $(168.9) | $65.4 | [Consolidated Financial Statements of Simon Property Group, L.P.](index=11&type=section&id=Consolidated%20Financial%20Statements%20of%20Simon%20Property%20Group%2C%20L.P.) The Operating Partnership's financials mirror Simon's, with key differences in the equity section Simon Property Group, L.P. - Key Financials (Six Months Ended June 30, in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Total Revenue** | $2,971.5 | $2,900.9 | | **Consolidated Net Income** | $1,121.5 | $1,410.6 | | **Net Income Attributable to Unitholders** | $1,120.6 | $1,408.7 | | **Diluted EPU** | $2.97 | $3.76 | - The assets and liabilities of the Operating Partnership are the same as Simon Property Group, Inc, with the main balance sheet difference being the presentation of **Partners' Equity** instead of Stockholders' Equity[11](index=11&type=chunk)[14](index=14&type=chunk)[38](index=38&type=chunk) [Condensed Notes to Consolidated Financial Statements](index=16&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) Notes detail acquisitions, investments, debt structure, and reconciliations of key financial metrics - As of June 30, 2025, the company owned or had an interest in **194 U.S. properties** and **38 international properties**, along with an **88% interest in TRG** and a **22.4% equity stake in Klépierre**[51](index=51&type=chunk) - In 2025, the company acquired the remaining interests in Brickell City Centre's retail component for **$497.7 million**, Briarwood Mall, and two luxury outlets in Italy for **$392.4 million**[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - In Q1 2024, the company sold its remaining interest in Authentic Brands Group (ABG) for **$1.2 billion**, resulting in a pre-tax gain of **$414.8 million**[116](index=116&type=chunk) Consolidated Debt Summary (June 30, 2025) | Debt Type | Amount | | :--- | :--- | | Mortgages and unsecured indebtedness | $25,401.3M | | - Senior Unsecured Notes | $18.8B | | - Unsecured Term Loan | €350.0M | | - Credit Facility Outstanding | $460.0M | | - Supplemental Facility Outstanding | €500.0M | | - Mortgage Debt | $5.3B | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes a decrease in EPS due to a prior-year gain, highlighting strong core operational growth Key Performance Indicators (U.S. Malls and Premium Outlets) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Ending Occupancy** | 96.0% | 95.6% | | **Average Base Minimum Rent (psf)** | $58.70 | $57.94 | - The decrease in diluted EPS for H1 2025 was primarily driven by a **$414.8 million pre-tax gain** on the sale of the company's ABG interest in Q1 2024, which was not repeated in 2025[197](index=197&type=chunk) - Portfolio Net Operating Income (NOI) **increased by 4.2%** for the first six months of 2025 compared to the same period in 2024, indicating strong underlying operational performance[200](index=200&type=chunk) FFO Reconciliation Summary (Diluted Per Share) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Diluted Net Income per Share** | $2.97 | $3.76 | | **Diluted FFO per Share** | $5.82 | $6.46 | | **Real Estate FFO per Share** | $6.01 | $5.84 | [Item 3. Qualitative and Quantitative Disclosures About Market Risk](index=75&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20About%20Market%20Risk) Market risk disclosures remain materially unchanged from the 2024 Annual Report on Form 10-K - There have been **no material changes** in market risk disclosures since the 2024 Annual Report on Form 10-K[279](index=279&type=chunk) [Item 4. Controls and Procedures](index=75&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls with no material changes to internal controls - Management, including the CEO and CFO, concluded that disclosure controls and procedures for both Simon and the Operating Partnership were **effective** as of June 30, 2025[281](index=281&type=chunk)[284](index=284&type=chunk) - **No changes occurred** during the quarter that materially affected, or are reasonably likely to materially affect, internal control over financial reporting for either entity[282](index=282&type=chunk)[285](index=285&type=chunk) [Part II — Other Information](index=76&type=section&id=Part%20II%20%E2%80%94%20Other%20Information) [Item 1. Legal Proceedings](index=76&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings are not expected to have a material adverse effect on the company - The company does not expect current legal proceedings to have a **material adverse effect** on its financial condition or operations[286](index=286&type=chunk) [Item 1A. Risk Factors](index=76&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the 2024 Annual Report on Form 10-K - **No material changes** to the company's risk factors were reported for the quarter[287](index=287&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=76&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered equity sales or share repurchases during the quarter - **No unregistered sales** of equity securities were made by either Simon or the Operating Partnership during Q2 2025[288](index=288&type=chunk)[290](index=290&type=chunk) - As of June 30, 2025, **no shares had been repurchased** under the $2.0 billion stock repurchase plan authorized in February 2024[289](index=289&type=chunk) - The Operating Partnership redeemed **300 limited partner units for $50,000** during the quarter[291](index=291&type=chunk) [Item 5. Other Information](index=76&type=section&id=Item%205.%20Other%20Information) The Audit Committee approved additional audit and non-audit services from its accounting firm - The Audit Committee approved additional audit and non-audit services from **Ernst & Young LLP** during the quarter[294](index=294&type=chunk) [Item 6. Exhibits](index=78&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including required CEO/CFO certifications - The report includes standard exhibits such as organizational documents and **CEO/CFO certifications** under Sarbanes-Oxley Sections 302 and 906[296](index=296&type=chunk)

Core Insights - Simon Property Group, Inc. (SPG) reported a second-quarter 2025 real estate funds from operations (FFO) per share of $3.05, exceeding the Zacks Consensus Estimate of $3.04 and up from $2.93 a year ago [1][8] - The company generated revenues of $1.50 billion, slightly missing the Zacks Consensus Estimate of $1.51 billion, but reflecting a year-over-year increase of 2.8% [2] - SPG's occupancy for U.S. Malls and Premium Outlets reached 96%, a 40 basis points increase from 95.6% a year ago, with base minimum rent per square foot rising 1.3% to $58.70 [4][8] Revenue and Financial Performance - Revenues from lease income amounted to $1.38 billion, a 4.8% increase compared to the prior year, surpassing the estimate of $1.36 billion [3] - Domestic property net operating income (NOI) increased by 4.2% year over year, while portfolio NOI rose by 4.7% [4] Strategic Developments - In June 2025, Simon Property acquired its partner's stake in the retail and parking facilities at Brickell City Centre in Miami, FL, achieving full ownership of the asset [5] Balance Sheet and Liquidity - As of the end of the second quarter 2025, SPG had $9.2 billion in liquidity, which included $1.8 billion in cash and $7.4 billion in available capacity under revolving credit facilities [6] Guidance and Outlook - SPG has narrowed its 2025 real estate FFO per share guidance to a range of $12.45 to $12.65, raising the midpoint to $12.55 [7] - The Zacks Consensus Estimate for 2025 FFO per share is at the lower end of this range, at $12.45 [7] Dividend Announcement - Concurrent with its earnings release, SPG announced a quarterly common stock dividend of $2.15 for Q3 2025, marking a 4.9% year-over-year increase [8]

Core Insights - Simon Property Group is successfully adapting to hybrid retail models by investing in digital platforms while consolidating ownership of premium urban assets [1][10] - The company reported strong Q2 2025 results, attributing its success to disciplined execution, high-quality assets, and strategic investments despite macroeconomic challenges [2][4] - Simon's management raised its full-year 2025 guidance for Real Estate FFO to between $12.45 and $12.65 per share, indicating confidence in sustained cash flow growth [5] Financial Performance - Occupancy in Simon's U.S. Malls and Premium Outlets reached 96%, a 40 basis point increase year-over-year, with base minimum rent per square foot climbing to $58.70, a 1.3% increase [7] - Tenant sales per square foot rose to $736, reflecting strong consumer engagement, particularly in affluent and tourism-heavy states like Florida, California, and Texas [7][8] - The U.S. Malls and Premium Outlets segment accounts for over 70% of Simon's Net Operating Income (NOI) [7] Strategic Investments - Simon acquired full ownership of the retail and parking components of Brickell City Centre in Miami, highlighting its strategy to control iconic assets in prime locations [9][10] - The company is investing in digital platforms and hybrid retail operators, indicating a strategy to blend online and in-person shopping experiences [10][11] Market Positioning - Simon's NOI is concentrated in high-income, high-tourism states, positioning the company to benefit from population migration trends and luxury spending resilience [8] - The company emphasizes that the rise of eCommerce is not a threat but a catalyst for transformation in the retail landscape [10] Industry Context - Despite inflation and high interest rates, consumer engagement with in-person retail remains strong, particularly in premium locations [6][12] - The broader retail narrative is complicated by structural and cyclical risks, including competition from eCommerce and global economic uncertainties [13][14]

Financial Performance - Simon Property reported $1.5 billion in revenue for the quarter ended June 2025, a year-over-year increase of 2.8% [1] - The EPS for the same period was $3.05, compared to $1.51 a year ago [1] - The reported revenue was below the Zacks Consensus Estimate of $1.51 billion, resulting in a surprise of -0.55% [1] - The company delivered an EPS surprise of +0.33%, with the consensus EPS estimate being $3.04 [1] Key Metrics - Occupancy rate for U.S. Malls and Premium Outlets was 96%, matching the average estimate by three analysts [4] - Revenue from management fees and other revenues was $37.93 million, exceeding the average estimate of $34.47 million by six analysts, representing a year-over-year increase of +14.3% [4] - Lease income revenue was $1.38 billion, slightly below the average estimate of $1.39 billion based on five analysts, reflecting a +4.8% year-over-year change [4] - Other income reported was $81.07 million, lower than the average estimate of $94.02 million from four analysts, indicating a year-over-year decline of -25.9% [4] - Net Earnings Per Share (Diluted) was $1.70, surpassing the average estimate of $1.59 by six analysts [4] Stock Performance - Shares of Simon Property have returned -3.6% over the past month, while the Zacks S&P 500 composite increased by +0.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Performance - Simon Property (SPG) reported quarterly funds from operations (FFO) of $3.05 per share, exceeding the Zacks Consensus Estimate of $3.04 per share, and up from $2.90 per share a year ago, representing an FFO surprise of +0.33% [1] - The company posted revenues of $1.5 billion for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.55%, compared to $1.46 billion in the same quarter last year [2] - Over the last four quarters, Simon Property has surpassed consensus FFO estimates three times and topped consensus revenue estimates two times [2] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $3.11 on revenues of $1.52 billion, and for the current fiscal year, it is $12.45 on revenues of $6.13 billion [7] - The estimate revisions trend for Simon Property was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The REIT and Equity Trust - Retail industry, to which Simon Property belongs, is currently in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Real estate FFO was $3.05 per share in Q2 2025, a 4.1% increase from $2.93 in the prior year [10] - Domestic property NOI increased by 4.2% year over year for the quarter and 3.8% for the first half of the year [10] - Second quarter funds from operation were $1,190 million or $3.15 per share, compared to $1,090 million or $2.90 per share last year, reflecting an 8.6% growth [12] - The company raised its full year 2025 real estate FFO guidance range to $12.45 to $12.65 per share, up from $12.24 last year [15] Business Line Data and Key Metrics Changes - Approximately 1,000 leases were signed for over 3.6 million square feet in the quarter, with nearly 90% of leases expiring through 2025 completed [11] - Malls and premium outlets ended Q2 at 96% occupancy, up 10 basis points sequentially and 40 basis points year over year [11] - The mills achieved a record occupancy of 99.3%, an increase of 90 basis points sequentially and 110 basis points from the prior year [11] Market Data and Key Metrics Changes - Average base minimum rent for malls and outlets increased by 1.3% year over year, while mills increased by 0.6% [12] - Sales for malls and premium outlets per square foot were $736 for the quarter [12] - Traffic increased by 1.5%, although some centers near borders experienced sales and traffic weakness [70] Company Strategy and Development Direction - The company focuses on creating long-term value through disciplined investments and operational excellence [6] - The acquisition of Brickell City Center was highlighted as a strategic move to enhance operations and drive NOI growth [13] - The company is actively seeking additional acquisition opportunities while maintaining a selective approach based on product and price sensitivity [40][52] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment, acknowledging the impact of tariffs and geopolitical uncertainties [62] - Despite challenges, management noted that retail demand remains strong and traffic is increasing [24][66] - The company is optimistic about the growth profile of the U.S. economy, driven by significant planned capital investments [64] Other Important Information - The company announced a dividend of $2.15 per share for Q3, a year-over-year increase of $0.10 or 4.9% [15] - The company completed 21 secured loan transactions totaling approximately $3.8 billion, with a weighted average interest rate of 5.84% [14] Q&A Session Summary Question: Leasing velocity and demand insights - Management noted that retail demand is unabated despite geopolitical uncertainties, with strong traffic and sales performance [19][24] Question: Demand from smaller tenants - Management indicated that smaller tenants are performing well and beating their plans for the year, showing strong demand [30] Question: Acquisition opportunities and Brickell asset potential - Management expressed excitement about the Brickell acquisition, highlighting its strategic location and growth potential [36][39] Question: Economic outlook and guidance updates - Management remains cautious about the economic environment but is optimistic about the growth profile for 2026 [62][66] Question: Traffic growth quantification - Management reported a 1.5% increase in traffic, with some centers near borders experiencing challenges [70] Question: Supply and occupancy pipeline - Management indicated a focus on optimizing occupancy and tenant mix across all asset classes [76] Question: Interest in acquiring anchor boxes - Management clarified that while they are interested in acquiring anchor boxes, pricing and complexity of transactions are key considerations [88][90]

Financial Data and Key Metrics Changes - Real estate FFO was $3.05 per share in Q2 2025, a 4.1% increase from $2.93 in the prior year [6] - Second quarter funds from operation totaled $1,190 million or $3.15 per share, compared to $1,090 million or $2.90 per share last year, reflecting an 8.6% growth [9] - Domestic property NOI increased by 4.2% year over year for the quarter and 3.8% for the first half of the year [6] Business Line Data and Key Metrics Changes - Approximately 1,000 leases were signed for over 3.6 million square feet in the quarter, with nearly 90% of leases expiring through 2025 completed ahead of last year [7] - Malls and premium outlets ended Q2 at 96% occupancy, up 10 basis points sequentially and 40 basis points year over year [7] - The mills achieved a record occupancy of 99.3%, an increase of 90 basis points sequentially and 110 basis points from the prior year [7] Market Data and Key Metrics Changes - Average base minimum rent for malls and outlets increased by 1.3% year over year, while mills increased by 0.6% [8] - Sales for malls and premium outlets per square foot were $736 for the quarter [8] - Traffic increased by 1.5%, although some centers near borders experienced flat sales and traffic due to restrictions [67] Company Strategy and Development Direction - The company focuses on long-term value creation through disciplined investments and operational excellence, driving growth in cash flow, funds from operation, and dividends per share [5] - The acquisition of Brickell City Center was highlighted as a strategic move to enhance operations and drive NOI growth [10] - The company is optimistic about future acquisitions, emphasizing a selective approach based on product quality and pricing [36] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment, acknowledging the impact of tariffs and geopolitical uncertainties [58][60] - Despite challenges, management noted strong retail demand and traffic, indicating a positive outlook for the remainder of the year [20][64] - The company raised its full-year 2025 real estate FFO guidance range to $12.45 to $12.65 per share, compared to $12.24 last year [12] Other Important Information - The company announced a dividend of $2.15 per share for Q3, a year-over-year increase of $0.10 or 4.9% [12] - The company completed 21 secured loan transactions totaling approximately $3.8 billion, with a weighted average interest rate of 5.84% [11] Q&A Session Summary Question: Leasing velocity and demand insights - Management noted that despite geopolitical and domestic uncertainties, retail demand remains strong, with increased shopper traffic and sales holding steady [15][20] Question: Demand from smaller tenants - Management indicated that smaller tenants are performing well, with demand remaining strong despite concerns about tariffs affecting their cost of goods [25][26] Question: Acquisition opportunities and Brickell asset potential - Management expressed excitement about the Brickell acquisition, highlighting its unique market position and potential for growth [32][34] Question: Future acquisition strategy and market dynamics - Management clarified that they remain focused on both internal reinvestment and external acquisitions, emphasizing the importance of price sensitivity [44][50] Question: Impact of tariffs and economic outlook - Management acknowledged the cautious approach due to tariffs but expressed optimism about the US economic landscape and potential growth in 2026 [60][62] Question: Traffic growth quantification - Management reported a 1.5% increase in traffic, noting some centers near borders are experiencing flat performance due to restrictions [67][68] Question: Supply and occupancy trends - Management confirmed that the S and O pipeline is at 340 basis points, with a focus on optimizing tenant mix to enhance property performance [74][76] Question: Interest in acquiring anchor boxes - Management discussed the complexities of acquiring anchor boxes, emphasizing the importance of price and the relationship with Catalyst Brands [84][90]

TABLE OF CONTENTS SIMON PROPERTY GROUP EARNINGS RELEASE & SUPPLEMENTAL INFORMATION UNAUDITED SECOND QUARTER TABLE OF CONTENTS TABLE OF CONTENTS | EARNINGS RELEASE AND SUPPLEMENTAL INFORMATION | | | --- | --- | | FOR THE QUARTER ENDED JUNE 30, 2025 | PAGE | | (1) Earnings Release | 2–11 | | Overview | 12 | | The Company | 12 | | Stock Information, Credit Ratings and Senior Unsecured Debt Covenants | 13 | | Financial Data | | | Selected Financial and Equity Information | 14 | | Net Operating Income (NOI) Comp ...