Consensus Cloud Raises Earnings Outlook, Simon Lifts Real Estate FFO to $13.40
Key Facts
Consensus Cloud Solutions raised its 2026 adjusted diluted earnings per share guidance range as Simon Property Group reported quarterly results that led it to increase its annual Real Estate FFO outlook. Consensus Cloud revenue in the third quarter was $91.0 million, up 3.7% from $87.8 million in the same period of 2025, according to a company release carried by StockTitan from Business Wire. Adjusted earnings per share also rose to $1.50 from $1.38 a year earlier. The company raised its annual guidance range to $6.00–$6.10 per share, compared with the previous range of $5.55–$5.95. At Simon, Real Estate FFO rose to $1.277 billion, or $3.37 per diluted share, up 4.7% year over year, according to the company’s November 5 release.
Consensus Cloud revenue growth varied across its business channels: enterprise channel revenue increased 9.1%, while revenue from the small office/home office segment fell 6.0%. The company attributed the increase in total revenue to enterprise channel growth, which partially offset the decline in the SoHo segment associated with its strategic initiative. Meanwhile, quarterly cash flow metrics declined from a year earlier. Net cash provided by operating activities fell to $45.6 million from $51.6 million, while free cash flow dropped to $38.6 million from $44.4 million. The company attributed both declines primarily to changes in working capital accounts.
Simon’s results show a divergence between its real estate performance measure and accounting net income. Net income attributable to common shareholders fell to $499.0 million, or $1.54 per diluted share, from $606.2 million and $1.86 per share in the third quarter of 2025. The company said quarterly net income included $99.6 million in after-tax non-cash losses, equivalent to $0.27 per share, related to mark-to-market adjustments. At the same time, domestic property net operating income rose 6.6%, and portfolio net operating income increased 6.7% year over year. Chief Executive Eli Simon said, "Leasing momentum continued, rents and occupancy increased, and shopper traffic growth accelerated for the third consecutive quarter," adding that this supported growth in tenant sales across the portfolio.
For the first nine months, Simon’s Real Estate FFO was $3.733 billion, or $9.82 per diluted share, compared with $3.484 billion and $9.24 per share in the same period of 2025, an increase of 6.3% per share. U.S. store occupancy was also 96.5% on September 30, 2026, up from 96.4% on the same date a year earlier. Minimum base rent rose to $62.75 per square foot from $59.14, an increase of 6.1%. Reported tenant sales per square foot were $852 for the twelve months ended September 30, compared with $742 for the period ended on the same date in 2025, up 14.8%. Simon considers Real Estate FFO a non-GAAP performance measure, and FFO does not represent operating cash flow under those principles.
Following its third-quarter results, Simon raised its 2026 Real Estate FFO outlook to $13.30–$13.40 per diluted share, an increase of $0.10 from its previous range of $13.20–$13.30. The company had raised the previous range after its second-quarter results to $13.20–$13.30, an increase of $0.08 at the midpoint; the November update then raised the estimate again. It also declared a regular distribution of $2.30 per share for the fourth quarter of 2026, an increase of $0.10, or 4.5%, year over year. The distribution is payable on December 31 to shareholders of record on December 10. Reported liquidity of approximately $9.0 billion on September 30 supports the company’s financing flexibility; it included $1.3 billion in cash and $7.7 billion of available capacity under total revolving credit facilities of $8.5 billion.
Consensus Cloud shares closed at $37.18 on November 4, according to EL7 data. Simon held its third-quarter earnings call on November 5 and made an audio replay available through November 12, 2026. As part of its capital allocation, Simon repurchased 1,137,182 common shares during the quarter ended September 30, at an average of $207.98 per share and for a total investment of $236.5 million. These figures place the outlook and distribution updates within quarterly results in which the company recorded growth in real estate operating metrics while net income declined from a year earlier. At Consensus Cloud, results combined higher revenue and adjusted earnings per share with lower quarterly cash flows.