Simon Raises 2026 Real Estate FFO Guidance and Quarterly Dividend

Simon Property (SPG ) Group reported third-quarter results on November 5, 2026, raising its full-year 2026 Real Estate Funds From Operations (Real Estate FFO) guidance to $13.30 to $13.40 per diluted share from $13.20 to $13.30. For the quarter ended September 30, 2026, stronger property operating measures contrasted with lower GAAP earnings. Simon also declared a fourth-quarter common dividend of $2.30 per share, up 4.5% year over year.

Third-quarter Real Estate FFO was $1.277 billion, or $3.37 per diluted share, compared with $1.215 billion, or $3.22, a year earlier, a 4.7% per-share increase. Net income attributable to common stockholders moved in the opposite direction, falling to $499.0 million, or $1.54 per diluted share, from $606.2 million, or $1.86.

The current quarter included $99.6 million, or $0.27 per diluted share, of non-cash after-tax losses from unrealized mark-to-market adjustments tied to Klépierre exchangeable bonds and the revaluation of an equity security that became publicly traded during the quarter. That security is held by an unconsolidated Other Platform Investment. FFO, which included those losses, was $1.172 billion, or $3.09 per diluted share, down from $1.228 billion, or $3.25.

Simon defines its non-GAAP Real Estate FFO measure as operating-partnership FFO excluding other platform investments, specified disposal, exchange or revaluation gains and losses on equity interests, and unrealized fair-value movements in publicly traded equity instruments and a derivative instrument, after the specified tax adjustments. Those exclusions help explain why the property-focused measure rose while both GAAP net income and FFO declined.

The annual outlook contains a similar contrast. Simon now estimates full-year net income attributable to common stockholders at $6.32 to $6.42 per diluted share, down from its previous $6.47 to $6.57 range, even as it raises the Real Estate FFO forecast.

Rent and Sales Gains Support Property Results

Domestic property net operating income (NOI) increased 6.6%, while portfolio NOI rose 6.7% from the prior-year period. At Simon’s U.S. Malls and Premium Outlets, base minimum rent increased 6.1% to $62.75 per square foot from $59.14. Occupancy was nearly unchanged at 96.5%, versus 96.4% a year earlier.

Reported retailer sales for the trailing 12 months ended September 30, 2026 rose 14.8% to $852 per square foot from $742. The much smaller occupancy movement makes the rent and retailer-sales gains the more pronounced changes in the quarter’s operating statistics.

Chief Executive Officer Eli Simon connected the results to activity across the portfolio: “Leasing momentum continued, rents and occupancy increased and shopper traffic growth accelerated for the third consecutive quarter, driving robust retailer sales growth across our portfolio.”

The consolidated statements also show the expenses accompanying that growth. Total revenue rose to $1.815 billion from $1.602 billion, but total operating expenses increased to $1.010 billion from $788.7 million. Operating income before other items consequently edged down to $804.5 million from $812.9 million. Depreciation and amortization expense rose to $510.8 million from $338.6 million, while interest expense, reported below operating income, increased to $287.6 million from $242.8 million.

Capital Returns and New Financing

The fourth-quarter common dividend is payable December 31, 2026, to shareholders of record on December 10, 2026. Simon also repurchased 1,137,182 common shares during the third quarter at an average price of $207.98, investing $236.5 million.

Simon completed an $800 million two-tranche senior-notes offering during the quarter. The notes had a combined weighted-average term of 7.7 years and a weighted-average coupon rate of 5.45%. Seven secured loan transactions totaled approximately $970 million in U.S.-dollar equivalent at a weighted-average interest rate of 6.33%.

As of September 30, 2026, liquidity was approximately $9.0 billion, comprising $1.3 billion of cash, including Simon’s share of joint-venture cash, and $7.7 billion of available revolving-credit capacity, net of outstanding commercial paper, under $8.5 billion of total facilities.

The opposite guidance moves show the limit of reading the quarter through either earnings measure alone: property operations are improving, while the GAAP outlook is moving lower after a quarter affected by valuation losses and higher expenses.