Simon Property Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to common stockholders was $499.0 million ($1.54 per diluted share) for the quarter ended September 30, 2026, compared to $606.2 million ($1.86 per diluted share) in the prior year period.
• Real Estate FFO was $1.277 billion ($3.37 per diluted share) for the quarter, an increase of 4.7% compared to $1.215 billion ($3.22 per diluted share) in the prior year.
• FFO was $1.172 billion ($3.09 per diluted share) for the quarter, compared to $1.228 billion ($3.25 per diluted share) in the prior year.
• Net income attributable to common stockholders was $1.462 billion ($4.51 per diluted share) for the nine months ended September 30, 2026, compared to $1.576 billion ($4.83 per diluted share) in the prior year.
• Real Estate FFO was $3.733 billion ($9.82 per diluted share) for the nine months, an increase of 6.3% compared to $3.484 billion ($9.24 per diluted share) in the prior year.
• FFO was $3.464 billion ($9.12 per diluted share) for the nine months, compared to $3.421 billion ($9.07 per diluted share) in the prior year.
• Domestic property Net Operating Income (NOI) increased 6.6% for the quarter and 7.3% for the nine months compared to the prior year.
• Portfolio NOI increased 6.7% for the quarter and 7.2% for the nine months compared to the prior year.
• Total consolidated revenue was $1.815 billion for the quarter and $5.362 billion for the nine months, compared to $1.602 billion and $4.573 billion, respectively, in the prior year periods.
• Consolidated net income was $565.3 million for the quarter and $1.708 billion for the nine months.
• The quarter included non-cash after-tax losses of $99.6 million ($0.27 per diluted share) due to unrealized mark-to-market adjustments on Klépierre exchangeable bonds and the revaluation of an equity security.

Guidance and Future Outlook:

• The Company increased its full-year 2026 Real Estate FFO per diluted share guidance to a range of $13.30 to $13.40, an increase of $0.10 per share from previous estimates.
• Estimated net income attributable to common stockholders per diluted share for 2026 is $6.32 to $6.42, compared to a previous range of $6.47 to $6.57.

Business Segments and Product Lines:

• Occupancy at U.S. Malls and Premium Outlets was 96.5% as of September 30, 2026, a 0.1% increase from 96.4% in the prior year.
• Base minimum rent per square foot was $62.75 as of September 30, 2026, an increase of 6.1% from $59.14 in the prior year.
• Reported retailer sales per square foot were $852 for the trailing 12 months ended September 30, 2026, an increase of 14.8% from $742 in the prior year.
• The portfolio consists of 254 properties comprising 206 million square feet in North America, Asia, and Europe, including a 20.7% ownership interest in Klépierre.
• U.S. Malls and Premium Outlets properties increased from 162 to 174 total properties, with square footage growing from 136.0 million to 148.6 million.
• The Mills segment had 16 properties totaling 24.1 million square feet with 98.9% occupancy.
• International properties included 24 Premium Outlets, 12 Designer Outlets, 2 Mall Luxury Outlets, and 4 Malls.

Market and Competitive Landscape:

• Management reported that leasing momentum continued, with rents and occupancy increasing.
• Shopper traffic growth accelerated for the third consecutive quarter, driving robust retailer sales growth across the portfolio.
• The retail real estate industry faces competition from e-commerce and evolving consumer preferences.

Risks and Challenges:

• Risks include the competitive market environment, evolving consumer preferences, inability to renew leases on favorable terms, and tenant bankruptcy or insolvency.
• Potential loss of anchor stores or major tenants and increases in vacant space are cited as risks.
• Economic factors such as inflation, tariffs, global trade disruptions, recessionary pressures, and geopolitical tensions (e.g., Ukraine, Middle East) may adversely affect the retail environment.
• Risks associated with substantial indebtedness, interest rate changes, and maintaining REIT status are noted.
• Climate change, environmental liabilities, natural disasters, and pandemics are identified as potential risks.

Management Commentary and Tone:

• Eli Simon, CEO, President, and COO, stated the company delivered "another quarter of excellent financial and operational results."
• Management highlighted the acceleration of shopper traffic growth and robust retailer sales growth as key drivers.
• The tone was positive, reflected in the decision to increase full-year guidance and raise the quarterly dividend.

Other Key Points:

• The Board of Directors declared a quarterly common stock dividend of $2.30 for the fourth quarter of 2026, an increase of $0.10 (4.5%) year-over-year.
• The Board declared a quarterly dividend of $1.046875 per share on the 8 3/8% Series J Cumulative Redeemable Preferred Stock.
• During the quarter, the Company repurchased 1,137,182 shares of common stock at an average price of $207.98 per share for a total investment of $236.5 million.
• The Company completed a two-tranche senior notes offering totaling $800 million with a weighted-average term of 7.7 years and a weighted-average coupon rate of 5.45%.
• Seven secured loan transactions totaling approximately $970 million were completed with a weighted-average interest rate of 6.33%.
• As of September 30, 2026, the Company had approximately $9.0 billion of liquidity, consisting of $1.3 billion in cash and $7.7 billion in available capacity under its $8.5 billion revolving credit facilities.
• Credit ratings include S&P Corporate A (Stable Outlook) and Moody's Senior Unsecured A3 (Positive Outlook).
• The Company maintains compliance with all senior unsecured debt covenants, including a Total Debt to Total Assets ratio of 36% (limit ≤65%) and a Fixed Charge Coverage Ratio of 4.6X (limit >1.5X).