Simon Property Q2 FFO Beats Estimates on Higher Revenues & Occupancy

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]