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]

Simon Property Group (NYSE:SPG) Q4 2025 Earnings call February 02, 2026 05:00 PM ET Company ParticipantsBrian McDade - CFODavid Simon - Chairman, CEO and PresidentEli Simon - COORich Hightower - Managing DirectorTom Ward - SVP of Investor RelationsConference Call ParticipantsAlexander Goldfarb - Managing Director and Senior Equity Research AnalystCaitlin Burrows - Equity Research AnalystCraig Mailman - Managing Director and Senior Equity Research AnalystFloris van Dijkum - Managing Director and Senior Equit ...

Simon Property Group (NYSE:SPG) Q4 2025 Earnings call February 02, 2026 05:00 PM ET Speaker15Greetings! Welcome to Simon Property Group's fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and the number zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the con ...