Simon Raises 2026 Real Estate FFO Outlook to $13.30–$13.40 per Share

Key Facts

On November 5, Simon Property Group raised its annual diluted Real Estate FFO outlook to a range of $13.30–$13.40 per share for the year ending December 31, 2026, an increase of $0.10 per share from its previous estimate, according to the company. The update accompanied its third-quarter results, which showed Real Estate FFO rising to $1.277 billion, or $3.37 per diluted share, from $1.215 billion and $3.22 per share a year earlier. That represents annual growth of 4.7% in the per-share measure. Eli Simon, the company's president, chief executive officer and chief operating officer, said it had "delivered another quarter of excellent financial and operating results." Simon tied the performance to leasing momentum, higher rents and occupancy, and accelerating shopper traffic growth for the third consecutive quarter.

At the property level, domestic property net operating income rose 6.6% in the third quarter from the same period a year earlier, while portfolio net operating income increased 6.7%, according to the statement. Occupancy at U.S. malls and premium outlets was 96.5% on September 30, 2026, compared with 96.4% on the same date in 2025. Minimum base rent reached $62.75 per square foot, compared with $59.14 a year earlier, an increase of 6.1%. These measures reflect improving occupancy and rents alongside growth in property income. The company said shopper traffic growth accelerated for the third consecutive quarter, driving tenant sales growth across the portfolio.

Reported tenant sales were $852 per square foot for the 12 months ended September 30, 2026, up from $742 in the comparable period, an increase of 14.8%, the company said. Elsewhere in the results, net income attributable to common shareholders fell to $499.0 million, or $1.54 per diluted share, in the third quarter, from $606.2 million and $1.86 per share a year earlier. The company attributed part of the quarter's result to after-tax non-cash losses of $99.6 million, or $0.27 per diluted share. It said the losses included mark-to-market adjustments and a revaluation of an equity investment. Net income therefore moved in the opposite direction from per-share Real Estate FFO over the same period.

For the first nine months of the year, 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 corresponding period of 2025, an annual per-share increase of 6.3%. The company had raised its annual outlook in August to $13.20–$13.30 per share, increasing the midpoint by $0.08 at the time; it then raised both ends of the range in its November update to $13.30–$13.40. Alongside its financial guidance, the company repurchased 1,137,182 shares during the quarter ended September 30, at an average of $207.98 per share and for a total investment of $236.5 million. Its liquidity was about $9.0 billion on September 30, including $1.3 billion in cash and $7.7 billion of available capacity under revolving credit facilities totaling $8.5 billion. It also issued $800 million of senior notes in two tranches during the quarter, with a weighted average term of 7.7 years and a weighted average coupon of 5.45%.

Expanding its portfolio, a Simon subsidiary agreed to acquire University Village, an open-air shopping center in Seattle, with the deal expected to close in the fourth quarter of 2026, subject to customary closing conditions. The center has more than 100 shops and services and is located north of downtown Seattle near the University of Washington. The deal announcement did not disclose the acquisition price. The company described it as a shopping and dining destination; it first opened in the 1950s. The deal would add a property to Simon's portfolio. Simon is a real estate investment trust that owns destinations for shopping, dining, entertainment and mixed uses.

Simon declared a regular cash distribution of $2.30 per share for the fourth quarter of 2026, an annual increase of 4.5%. The distribution is scheduled to be paid on December 31 to shareholders of record on December 10, according to the company statement. The company had said quarterly distributions would be discussed on its third-quarter earnings call on November 5, between 5 p.m. and 6 p.m. Eastern time. A replay of the call was available through November 12. The distribution and record dates come at the close of the company's quarterly results announcement and its updated annual outlook.