Simon Property | 8-K: FY2026 Q2 Revenue: USD 1.791 B

Revenue: As of FY2026 Q2, the actual value is USD 1.791 B.

EPS: As of FY2026 Q2, the actual value is USD 1.49, missing the estimate of USD 1.638.

EBIT: As of FY2026 Q2, the actual value is USD 824.1 M.

Net Income Attributable to Common Stockholders

Net income attributable to common stockholders for the second quarter ended June 30, 2026, was $483.1 million, or $1.49 per diluted share, compared to $556.1 million, or $1.70 per diluted share in the prior year period. The second quarter of 2025 included a non-cash after-tax gain of $0.21 per diluted share from investment activity. For the six months ended June 30, 2026, net income attributable to common stockholders was $962.7 million, or $2.97 per diluted share, compared to $969.8 million, or $2.97 per diluted share in the prior year.

Real Estate Funds From Operations (Real Estate FFO)

Real Estate FFO for the second quarter of 2026 was $1.249 billion, or $3.29 per diluted share, marking a 7.9% increase from $1.154 billion, or $3.05 per diluted share in the prior year. For the six months ended June 30, 2026, Real Estate FFO was $2.457 billion, or $6.46 per diluted share, an increase of 7.5% compared to $2.268 billion, or $6.01 per diluted share in the prior year.

Funds From Operations (FFO)

FFO for the second quarter of 2026 was $1.185 billion, or $3.12 per diluted share, compared to $1.189 billion, or $3.15 per diluted share in the prior year. The prior year period included a $0.21 per diluted share non-cash after-tax gain. For the six months ended June 30, 2026, FFO was $2.293 billion, or $6.03 per diluted share, compared to $2.194 billion, or $5.82 per diluted share in the prior year.

Net Operating Income (NOI) Growth

Domestic property NOI increased by 8.5% for the second quarter of 2026 and by 7.6% for the six months ended June 30, 2026, compared to the prior year periods. Portfolio NOI increased by 8.3% for the second quarter of 2026 and by 7.5% for the six months ended June 30, 2026, compared to the prior year periods.

Consolidated Revenue

Total consolidated revenue for the three months ended June 30, 2026, was $1,790,598 thousand, up from $1,498,459 thousand in the same period of 2025. For the six months ended June 30, 2026, total consolidated revenue was $3,547,691 thousand, compared to $2,971,472 thousand in 2025. Lease income for the three months ended June 30, 2026, was $1,659,709 thousand, and for the six months, it was $3,288,240 thousand. Other income was $90,055 thousand for the three months and $178,429 thousand for the six months ended June 30, 2026.

Operating Expenses

Total operating expenses for the three months ended June 30, 2026, were $966,500 thousand, compared to $754,262 thousand in 2025. For the six months ended June 30, 2026, total operating expenses were $1,961,431 thousand, compared to $1,499,658 thousand in 2025. Depreciation and amortization expenses were $459,876 thousand for the quarter and $918,773 thousand for the six months ended June 30, 2026. Interest expense was - $281,164 thousand for the quarter and - $556,826 thousand for the six months ended June 30, 2026.

Operating Income Before Other Items

Operating income before other items for the three months ended June 30, 2026, was $824,098 thousand, compared to $744,197 thousand in 2025. For the six months ended June 30, 2026, it was $1,586,260 thousand, compared to $1,471,814 thousand in 2025.

Consolidated Net Income

Consolidated net income was $574,130 thousand for the three months ended June 30, 2026, and $1,142,665 thousand for the six months ended June 30, 2026.

Funds Available for Distribution

Funds available for distribution were $1,099,118 thousand for the three months ended June 30, 2026, and $2,158,431 thousand for the six months ended June 30, 2026.

Capital Expenditures

Capital expenditures for the six months ended June 30, 2026, totaled $445,285 thousand for consolidated properties and $285,469 thousand for unconsolidated properties, amounting to a total of $730,754 thousand. Simon Property Group, Inc.’s share of capital expenditures for this period was $130,211 thousand.

Dividends Declared

Simon Property Group, Inc. declared a quarterly common stock dividend of $2.25 for the third quarter of 2026, representing a 4.7% year-over-year increase. A quarterly dividend of $1.046875 per share was also declared for its 8 ³⁄₈% Series J Cumulative Redeemable Preferred Stock.

Common Stock Repurchase Program

During the second quarter of 2026, Simon Property Group, Inc. repurchased 793,077 shares of its common stock and 237,618 limited partnership units. The average price for these repurchases was $205.10 per share/unit, totaling an investment of $211.4 million.

Liquidity and Capital Markets

As of June 30, 2026, Simon Property Group, Inc. had approximately $9.3 billion in total liquidity. This consisted of $1.7 billion in cash on hand (including its share of joint venture cash) and $7.6 billion in available capacity under its $8.5 billion total revolving credit facilities. The Company completed 8 secured loan transactions totaling approximately $1.4 billion with a weighted average interest rate of 5.36%. A Euro senior notes offering of €500 million with a 3.65% coupon rate and a 5-year term was also completed, along with a $460 million 5-year term loan priced at SOFR +0.70% to repay a draw on the revolving credit facility.

U.S. Malls and Premium Outlets Operating Statistics

Occupancy at U.S. Malls and Premium Outlets remained unchanged at 96.0% as of June 30, 2026, compared to June 30, 2025. Base minimum rent per square foot increased by 6.3% to $62.42 at June 30, 2026, from $58.70 at June 30, 2025. Reported retailer sales per square foot for the trailing 12 months ended June 30, 2026, increased by 13.9% to $838 from $736 at June 30, 2025.

Property Portfolio

As of June 30, 2026, Simon Property Group, Inc. owned or had an interest in 254 properties, comprising 206 million square feet across North America, Asia, and Europe. This portfolio includes 175 U.S. Malls and Premium Outlets (149.0 million square feet) and 16 The Mills properties (24.1 million square feet). The Company also holds a 20.7% ownership interest in Klépierre, a Paris-based real estate company.

Lease Expirations (U.S. Malls and Premium Outlets)

For the remainder of 2026 (July 1 – December 31), 712 inline store and freestanding leases are set to expire, covering 2,033,479 square feet with an average base minimum rent of $67.81 per square foot, representing 2.0% of gross annual rental revenues. In 2027, 3,182 inline store and freestanding leases will expire, covering 11,408,842 square feet at an average base minimum rent of $60.22 per square foot, accounting for 10.0% of gross annual rental revenues.

Outlook / Guidance

Simon Property Group, Inc. is increasing its outlook for full-year 2026 Real Estate FFO per diluted share to $13.20 to $13.30, an increase of $0.08 per diluted share at the midpoint. The estimated net income attributable to common stockholders per diluted share for 2026 is projected to be between $6.47 and $7.47.