[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 ...

Core Insights - Simon Property (SPG) is expected to report quarterly earnings of $3.04 per share, reflecting a 4.8% increase year-over-year, with revenues projected at $1.51 billion, a 3.3% increase from the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been revised upward by 0.2% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Forecasts - Analysts estimate 'Revenue- Management fees and other revenues' to be $34.47 million, a year-over-year increase of 3.9% [5]. - 'Revenue- Lease income' is projected to reach $1.39 billion, indicating a 5.4% increase from the prior-year quarter [5]. - 'Revenue- Other income' is expected to be $94.02 million, reflecting a year-over-year decline of 14% [5]. Key Metrics - The consensus for 'U.S. Malls and Premium Outlets - Occupancy - Total Portfolio' is 96.0%, up from 95.6% in the same quarter last year [6]. - 'Depreciation and amortization' is forecasted to reach $326.23 million [6]. - Over the past month, shares of Simon Property have increased by 2.3%, compared to a 3.4% increase in the Zacks S&P 500 composite [6].

Core Insights - Simon Property Group (SPG) is expected to report second-quarter 2025 results on August 4, with anticipated year-over-year increases in revenues and funds from operations (FFO) per share [1][9]. U.S. Retail Real Estate Market Overview - The U.S. shopping center market experienced a slight pullback in net absorption, with negative net absorption totaling 6.5 million square feet in Q2 2025, an improvement from negative 7.1 million square feet in Q1 2025 [4]. - The national vacancy rate increased by 50 basis points year-over-year to 5.8%, although it remains lower than the 6.4% observed from 2017 to 2019 [5]. - Asking rents for U.S. shopping centers rose by 2.3% year-over-year to $24.99 per square foot in Q2 2025 [6]. Simon Property Group's Performance Expectations - SPG is projected to report revenues of $1.51 billion for Q2 2025, reflecting a 3.3% increase year-over-year, with lease income expected to rise to $1.39 billion [9][11]. - FFO per share is anticipated to increase by 4.8% year-over-year to $3.04 [9][13]. - The company’s strong portfolio of high-quality retail assets and strategic focus on omnichannel integration and mixed-use developments are expected to drive performance [7][8]. Challenges and Market Dynamics - Rising e-commerce penetration may pose challenges to occupancy and sales performance, while elevated interest expenses are likely to impact profitability [10]. - The consensus estimate for other income is projected to decline to $94 million from $109.3 million in the prior-year quarter [12].