Simon Property Group — Third Quarter 2026 Earnings Summary

Financial Performance

• Net income attributable to common stockholders for the quarter ended September 30, 2026, was $499.0 million ($1.54 per diluted share), compared to $606.2 million ($1.86 per diluted share) in the prior year period.
• Real Estate FFO for the quarter was $1.277 billion ($3.37 per diluted share), a 4.7% increase from $1.215 billion ($3.22 per diluted share) in the prior year.
• FFO for the quarter was $1.172 billion ($3.09 per diluted share), compared to $1.228 billion ($3.25 per diluted share) in the prior year.
• Domestic property NOI increased 6.6% and portfolio NOI increased 6.7% year-over-year for the quarter.
• For the nine months ended September 30, 2026, net income attributable to common stockholders was $1.462 billion ($4.51 per diluted share), compared to $1.576 billion ($4.83 per diluted share) in 2025.
• Real Estate FFO for the nine months was $3.733 billion ($9.82 per diluted share), a 6.3% increase from $3.484 billion ($9.24 per diluted share) in 2025.
• FFO for the nine months was $3.464 billion ($9.12 per diluted share), compared to $3.421 billion ($9.07 per diluted share) in 2025.
• Domestic property NOI increased 7.3% and portfolio NOI increased 7.2% year-over-year for the nine-month period.
• Consolidated revenue for the quarter was $1.815 billion, up from $1.602 billion in the prior year.
• Consolidated revenue for the nine months was $5.362 billion, up from $4.573 billion in the prior year.
• Total debt (our share) was $35.352 billion with a weighted average interest rate of 4.27% and weighted average years to maturity of 6.4 years.
• Liquidity as of September 30, 2026, was approximately $9.0 billion, consisting of $1.3 billion in cash and $7.7 billion in available capacity under $8.5 billion of revolving credit facilities.

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 from previous estimates.
• Estimated net income attributable to common stockholders per diluted share for 2026 is now $6.32 to $6.42, down from a previous range of $6.47 to $6.57.

Business Segments and Product Lines

• U.S. Malls and Premium Outlets occupancy was 96.5% at September 30, 2026, a 0.1% increase from 96.4% in the prior year.
• Base minimum rent per square foot for U.S. Malls and Premium Outlets was $62.75 at September 30, 2026, up 6.1% from $59.14 in the prior year.
• Reported retailer sales per square foot for the trailing 12 months ended September 30, 2026, were $852, an increase of 14.8% from $742 in the prior year.
• The portfolio includes 254 properties comprising 206 million square feet in North America, Asia, and Europe as of September 30, 2026.
• The company holds a 20.7% ownership interest in Klépierre, a publicly traded Paris-based real estate company.
• 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%.
• The company completed seven secured loan transactions totaling approximately $970 million with a weighted-average interest rate of 6.33%.

Market and Competitive Landscape

• Management cited accelerating shopper traffic growth for the third consecutive quarter and robust retailer sales growth across the portfolio.
• Leasing momentum continued with increased rents and occupancy.
• The company faces a competitive market environment including e-commerce and evolving consumer preferences, as noted in forward-looking statements.

Risks and Challenges

• Risks include the inability to renew leases or relet vacant space on favorable terms, tenant bankruptcy or insolvency, loss of anchor stores, and increases in vacant space.
• Economic risks include inflation, tariffs, global trade disruptions, recessionary pressures, wars, and geopolitical tensions.
• Risks related to interest rate changes, substantial indebtedness, and covenants in governing agreements.
• Risks associated with international activities, including foreign exchange rates.
• Risks related to joint venture properties, including guarantees of certain joint venture indebtedness.
• Risks related to climate change, environmental liabilities, natural disasters, and pandemics.

Management Commentary and Tone

• Eli Simon, CEO, President, and COO, stated the company delivered "another quarter of excellent financial and operational results."
• Management highlighted that leasing momentum, rents, occupancy, and shopper traffic growth accelerated for the third consecutive quarter.
• The tone was confident, noting 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 its 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 reported non-cash after-tax losses of $99.6 million ($0.27 per diluted share) in the quarter due to unrealized mark-to-market adjustments on Klépierre exchangeable bonds and the revaluation of an equity security.
• Credit ratings include Standard & Poor's A (Stable Outlook) for Corporate and Senior Unsecured, and Moody's A3 (Positive Outlook) for Senior Unsecured.
• 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).