Core Insights - Simon Property Group (SPG) reported an earnings per share (EPS) of $9.35, significantly exceeding the estimated $3.47, and actual revenue of approximately $1.79 billion, surpassing the estimated $1.51 billion [1][6] Financial Performance - In 2025, Simon Property Group achieved a record Real Estate Funds From Operations (FFO) of $4.8 billion, demonstrating strong financial performance [2][6] - The company returned $3.5 billion to its shareholders, reflecting its commitment to rewarding investors [2] - The earnings yield of about 3.57% indicates the return on investment for shareholders [5] Strategic Initiatives - The company completed 23 significant redevelopment projects and acquired $2 billion worth of high-quality retail properties, aligning with its goal of driving sustainable growth in cash flow, FFO, and dividends per share [3] - SPG executed over 17 million square feet of leases and opened a new Premium Outlet in Indonesia, showcasing its operational excellence [2] Valuation Metrics - The company's price-to-earnings (P/E) ratio is approximately 28, indicating investor confidence in its earnings potential [3] - The price-to-sales ratio of approximately 10.14 suggests that investors are paying $10.14 for every $1 of sales, reflecting the company's strong market position [5] - The enterprise value to sales ratio is 14.17, and the enterprise value to operating cash flow ratio is 21.70, reflecting its valuation in relation to sales and cash flow [4] Challenges - Despite strong financial performance, Simon Property Group faces challenges with a debt-to-equity ratio of approximately 11.20, indicating a high level of debt compared to its equity [4][6] - The current ratio of around 0.70 suggests potential difficulties in covering short-term liabilities with short-term assets [4]

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For the quarter ended December 2025, Simon Property (SPG) reported revenue of $1.79 billion, up 13.2% over the same period last year. EPS came in at $3.49, compared to $2.04 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.63 billion, representing a surprise of +10.1%. The company delivered an EPS surprise of +0.58%, with the consensus EPS estimate being $3.47.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ho ...

Simon Property (SPG) came out with quarterly funds from operations (FFO) of $3.49 per share, beating the Zacks Consensus Estimate of $3.47 per share. This compares to FFO of $3.68 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of +0.58%. A quarter ago, it was expected that this shopping mall real estate investment trust would post FFO of $3.09 per share when it actually produced FFO of $3.22, delivering a surprise of +4.21%.Over the ...

Financial Data and Key Metrics Changes - The company reported record real estate funds from operations (FFO) of $4.8 billion, or $12.73 per share, reflecting strong financial performance [6] - Real estate FFO for the fourth quarter was $3.49 per share, a 4.2% increase from $3.35 in the prior year [11] - Domestic property net operating income (NOI) grew 4.8% year-over-year for the quarter and 4.4% for the year [11] - Portfolio NOI, including international properties at constant currency, grew 5.1% for the quarter and 4.7% for the year [11] - The company returned approximately $3.5 billion in cash to shareholders through stock repurchases and dividends [6] Business Line Data and Key Metrics Changes - The company signed over 1,300 leases totaling over 4.4 million square feet during the quarter, with more than 4,600 leases for over 17 million square feet for the year [8] - Approximately 30% of annual leasing volume consisted of new deals, indicating strong demand across the portfolio [8] - Average base minimum rents increased by 4.7% year-over-year for malls and premium outlets, with the addition of TRG properties contributing approximately 250 basis points to this growth [12] Market Data and Key Metrics Changes - Malls and premium outlets ended the year with an occupancy rate of 96.4%, while mills reached 99.2% [11] - Retailer sales per square foot for malls and premium outlets were $799 for the year, with total sales volumes growing approximately 4% in the fourth quarter and 3% for the full year [12] Company Strategy and Development Direction - The company acquired $2 billion of high-quality retail properties and completed over 20 major redevelopment projects [5][6] - The development pipeline now exceeds $4 billion, with a blended yield of 9% [10] - The company plans to enhance the merchandise mix and invest in capital upgrades at former TRG assets [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong occupancy, shopper traffic growth, and healthy retail sales, despite potential headwinds from tariffs affecting retailers [25][42] - The company expects real estate FFO of $13-$13.25 per share for 2026, with domestic property NOI growth of at least 3% [14] - Management noted that the retail demand remains strong, with a 15% increase in the leasing pipeline compared to the previous year [18] Other Important Information - The company completed approximately $9 billion in financing activities during 2025, maintaining a strong balance sheet with over $9 billion in liquidity [13] - The company paid more than $3.2 billion in common stock dividends and repurchased over 1.2 million shares [14] Q&A Session Summary Question: Details on leasing side and rent comparisons - Management indicated that new rents on leases are approximately $65 per square foot, with a 15% increase in the leasing pipeline year-over-year [17][18] Question: Early observations on the Simon Plus loyalty program - Management reported positive adoption and engagement from customers and brands, with expectations for continued growth in 2026 [20][22] Question: Insights on tenant credit and bad debt - Management acknowledged tariff pressures affecting retailers, with cautious expectations for tenant credit in 2026 [24][25] Question: Expected NOI or FFO from redevelopment projects - Management projected about $30 million contribution in 2026 from projects that are expected to stabilize [34] Question: Factors driving FFO guidance range - Management noted that sales growth could provide significant upside, with a conservative approach to budgeting [57][58] Question: Institutional appetite for higher productivity malls - Management indicated a status quo in partner investments, with no rush to buy in or out [100] Question: Expectations for luxury retail demand - Management noted mixed signals from luxury brands, with some showing growth while others are more cautious [104][106]

Financial Data and Key Metrics Changes - The company reported record real estate funds from operations (FFO) of $4.8 billion, or $12.73 per share, reflecting a 4.2% growth from $3.35 per share in the prior year [6][11] - Domestic property net operating income (NOI) grew 4.8% year-over-year for the quarter and 4.4% for the year, while portfolio NOI, including international properties at constant currency, grew 5.1% for the quarter and 4.7% for the year [11][12] - The company returned approximately $3.5 billion in cash to shareholders through stock repurchases and dividends, with a total of approximately $48 billion paid in dividends since going public [6][14] Business Line Data and Key Metrics Changes - The company signed more than 1,300 leases totaling over 4.4 million square feet during the quarter and over 4,600 leases for more than 17 million square feet for the year, with approximately 30% of annual volume being new deals [8][9] - Average base minimum rents increased by 4.7% year-over-year for malls and premium outlets, with retailer sales per square foot for these properties at $799 for the year [12] Market Data and Key Metrics Changes - Malls and premium outlets ended the year with an occupancy rate of 96.4%, while mills reached 99.2% occupancy [11] - The company expects to drive higher occupancy at newly acquired assets, which slightly reduced overall occupancy rates [12] Company Strategy and Development Direction - The company acquired $2 billion of high-quality retail properties and completed over 20 major redevelopment projects, enhancing the quality of its portfolio [5][8] - The development pipeline now exceeds $4 billion, with significant projects scheduled for completion in 2026, including expansions and mixed-use developments [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong leasing demand and traffic growth, despite potential headwinds from tariffs affecting retailers [25][42] - The company anticipates real estate FFO of $13-$13.25 per share for 2026, with domestic property NOI growth expected to be at least 3% [14][15] Other Important Information - The company completed approximately $9 billion in financing activities during 2025, maintaining a strong balance sheet with over $9 billion in liquidity at year-end [13] - The company announced a dividend of $2.20 per share for the first quarter of 2026, a year-over-year increase of 4.8% [14] Q&A Session Summary Question: Can you provide details on rents for new and renewal leases? - The company disclosed that new rents on leases are approximately $65 per square foot, with a 30% new leasing rate being a good run rate [17] Question: What are the early observations on the Simon Plus loyalty program? - Management noted early positive adoption from customers and brands, with plans to continue enhancing engagement and partnerships [20][22] Question: How is tenant credit and bad debt expected to change? - Management indicated that tariffs are putting pressure on retailers, particularly smaller ones, but overall tenant management remains cautious [24][25] Question: What incremental NOI or FFO should be expected from redevelopment projects? - The company expects about a $30 million contribution in 2026 from projects that are set to stabilize [34] Question: How does the leasing pipeline compare year-over-year? - The leasing pipeline is up about 15% over last year, indicating strong demand across all categories [18][111] Question: What is the outlook for luxury retail demand? - Management noted that luxury brands are showing mixed signals, with some growing and others being cautious, but overall, the long-term outlook remains positive [104][106]

Financial Data and Key Metrics Changes - The company reported record real estate funds from operations (FFO) of $4.8 billion, or $12.73 per share, reflecting a 4.2% growth from $3.35 per share in the prior year [4][10] - Domestic property net operating income (NOI) grew 4.8% year-over-year for the quarter and 4.4% for the year, while portfolio NOI, including international properties at constant currency, grew 5.1% for the quarter and 4.7% for the year [10][11] - The average base minimum rents increased by 4.7% year-over-year for malls and premium outlets, with retailer sales per square foot for these properties at $799 for the year, up 2% year-over-year [11] Business Line Data and Key Metrics Changes - The company signed more than 1,300 leases totaling over 4.4 million square feet during the quarter and over 4,600 leases for more than 17 million square feet for the year, with approximately 30% of annual volume being new deals [6][7] - The company completed over 20 significant redevelopment projects in 2025, enhancing the quality of its portfolio [7][9] Market Data and Key Metrics Changes - Malls and premium outlets ended the year at 96.4% occupancy, while mills ended at 99.2% [10] - The addition of Taubman Realty Group (TRG) assets reduced occupancy by 20 basis points for malls and premium outlets and 30 basis points for mills [11] Company Strategy and Development Direction - The company plans to enhance its merchandise mix and invest in capital upgrades at former TRG assets, with a development pipeline exceeding $4 billion [9] - The company is focused on pursuing new growth and value creation opportunities across its properties, leveraging its strong balance sheet and leasing expertise [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the retail environment, noting strong retailer demand and traffic growth, despite some caution regarding the impact of tariffs on smaller retailers [23][40] - The company expects real estate FFO of $13-$13.25 per share for 2026, with domestic property NOI growth of at least 3% [13][14] Other Important Information - The company returned approximately $3.5 billion in cash to shareholders through stock repurchases and dividends, with a total of approximately $48 billion paid in dividends since going public [4][13] - The company completed approximately $9 billion in financing activities during 2025, maintaining a strong balance sheet with over $9 billion in liquidity at year-end [12] Q&A Session Summary Question: Can you provide details on rents for new and renewal leases? - The company disclosed that new rents on leases are approximately $65 per square foot, with a 15% year-over-year increase in the leasing pipeline [16][17] Question: What are the early observations on the Simon Plus loyalty program? - Management noted early positive adoption and engagement from customers and brands, with expectations for continued growth in 2026 [19][20] Question: How is tenant credit and bad debt expected to change? - Management indicated that tariffs are putting pressure on retailers, particularly smaller ones, but overall tenant demand remains strong [22][23] Question: What incremental NOI or FFO should be expected from redevelopment projects? - The company expects about a $30 million contribution in 2026 from projects that are set to be completed [31][32] Question: How should we think about the factors driving FFO guidance? - Management stated that sales growth and ancillary businesses could drive outperformance, despite potential bankruptcies [55][56] Question: What is the institutional appetite for higher productivity malls? - Management noted that there is no rush to invest or divest, with a status quo observed among partners [99][100] Question: What is the outlook for luxury retail leasing demand? - Management indicated that luxury brands are making long-term decisions and remain committed to the U.S. market, despite some caution [104][106]

4Q 2025 SUPPLEMENTAL SIMON PROPERTY GROUP EARNINGS RELEASE & SUPPLEMENTAL INFORMATION UNAUDITED FOURTH QUARTER TABLE OF CONTENTS | EA | RN | IN | GS | RE | LE | AS | E | AN | D | SU | PP | LE | ME | NT | AL | IN | FO | RM | AT | IO | N | FO | QU | CE | 20 | 25 | GE | R | TH | E | AR | TE | R | EN | DE | D | DE | MB | ER | 31 | PA | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ...

Financial Performance - For the fourth quarter of 2025, net income attributable to common stockholders was $3.048 billion, or $9.35 per diluted share, compared to $667.2 million, or $2.04 per diluted share in 2024[7]. - Consolidated net income for Q4 2025 was $3,539,882, compared to $771,760 in Q4 2024, representing a significant increase of 359.5%[23]. - Basic and diluted earnings per common share for Q4 2025 were $9.35, up from $2.04 in Q4 2024, reflecting a growth of 359.3%[23]. - Consolidated net income for the twelve months ended December 31, 2025, reached $5,364,120, compared to $2,729,021 in 2024, marking a significant increase of 96.5%[44]. - The company reported a net income attributable to common stockholders of $3,048,269 for Q4 2025, compared to $667,231 in Q4 2024, an increase of 356.5%[23]. Revenue and Income Growth - Total revenue for Q4 2025 reached $1,791,462, an increase of 13.2% from $1,582,232 in Q4 2024[23]. - Lease income for the year ended December 31, 2025, was $5,839,160, up 8.3% from $5,389,760 in 2024[23]. - Total consolidated revenue for the three months ended December 31, 2025, was $1,791,462, an increase from $1,582,232 in the same period of 2024, representing a growth of 13.2%[44]. - Total Income from Unconsolidated Entities for Q4 2025 was $206,938, up from $140,947 in Q4 2024, marking a significant increase of 46.9%[59]. Operational Metrics - Domestic property Net Operating Income (NOI) increased by 4.8% in Q4 2025, while portfolio NOI increased by 5.1% compared to the prior year period[7]. - Total operating expenses for Q4 2025 were $900,793, an increase of 20.6% from $746,486 in Q4 2024[23]. - Total operating expenses for the twelve months ended December 31, 2025, were $1.019 billion, up from $930 million in 2024, indicating an increase of 9.5%[113]. - Operating income before other items for the three months ended December 31, 2025, was $193.449 million, compared to $189.144 million in the same period of 2024, showing a slight increase of 2.4%[110]. Shareholder Returns - For the full year 2025, Real Estate FFO reached a record $4.8 billion, with $3.5 billion returned to shareholders[5]. - The company declared a quarterly common stock dividend of $2.20 for Q1 2026, an increase of 4.8% year-over-year[11]. Assets and Liabilities - Total assets increased to $40,606,466 in 2025, up from $32,405,691 in 2024, marking a growth of 25.5%[25]. - Total liabilities rose to $33,901,073 in 2025, compared to $28,806,239 in 2024, an increase of 17.5%[25]. - Mortgages and unsecured indebtedness as of December 31, 2025, were $7.514 billion, compared to $6.313 billion in 2024, reflecting an increase of 19.0%[116]. - Total liabilities as of December 31, 2025, were $6.474 billion, consistent with total assets, indicating a balanced financial position[116]. Debt and Financing - The weighted average interest rate for consolidated indebtedness is 4.43%, with total mortgage debt amounting to $8,226,679,000[86]. - The total share of debt for 2026 is $7,305,804,000, with a weighted average interest rate of 3.90%[89]. - The company has a total debt amortization of $35,619,627,000, with a weighted average interest rate of 4.09%[89]. - The company’s total investment in new developments for FY 2025 is $16,979,000, with a forecasted return rate of 11%[75]. Property and Portfolio Management - The company owned or had an interest in 254 properties comprising 206 million square feet as of December 31, 2025[36]. - The company has a total of 178 U.S. Malls and Premium Outlets as of December 31, 2025, compared to 162 in 2024, representing a 9.9% increase[63]. - Total mall square footage is 119,734,147 square feet as of December 31, 2025[97]. - The company has a 100% ownership in most of its properties, indicating a strong control over its assets[99]. Future Projections - Estimated net income for 2026 is projected to be between $6.87 and $7.12 per diluted share, with Real Estate FFO expected to be between $13.00 and $13.25 per diluted share[13]. - The company has a total net cash investment for FY 2025 of $1,227,865,000, with a forecasted investment of $1,090,516,000 for FY 2025-2027[75].

The Company was active in both the secured and unsecured credit markets in 2025. The Company completed a two tranche senior notes offering totaling $1.5 billion, with a weighted-average term of 7.8 years and a coupon rate of 4.775%. In addition, the Company completed 46 secured loan transactions totaling approximately $7.0 billion (U.S. dollar equivalent), with a weighted average interest rate of 5.43%. ® INDIANAPOLIS, Feb. 2, 2026 /PRNewswire/ -- Simon, a real estate investment trust engaged in the ownersh ...