Simon Raises Quarterly Dividend to $2.30 a Share, Up 4.5% Year Over Year
Key Facts
Simon Property Group on Nov. 5 declared a regular cash dividend of $2.30 a share for the fourth quarter of 2026, an increase of $0.10, or 4.5% year over year. The company said the dividend will be paid on Dec. 31 to shareholders of record on Dec. 10. The announcement coincided with third-quarter results, which showed real estate funds from operations rising to $1.277 billion, or $3.37 per diluted share. The company reported $1.215 billion, or $3.22 a share, in the same quarter of 2025. The company's shares closed at $226.55 on Nov. 5.
Third-quarter revenue totaled $1.815 billion, compared with $1.602 billion in the same period of 2025. Net income attributable to common shareholders, meanwhile, fell to $499.0 million, or $1.54 per diluted share, from $606.2 million, or $1.86 a share, a year earlier. Simon said current-quarter results included after-tax noncash losses related to mark-to-market adjustments and the revaluation of an investment. Those losses totaled $99.6 million, or $0.27 per diluted share. For the first nine months of 2026, real estate funds from operations rose to $3.733 billion, or $9.82 per diluted share, from $3.484 billion, or $9.24 a share, an annual increase of 6.3%.
Operating metrics reflected continued strength at the company's malls and outlets in the United States. Occupancy was 96.5% on Sept. 30, 2026, compared with 96.4% on the same date a year earlier. Minimum base rent rose to $62.75 per square foot from $59.14, an annual increase of 6.1%. Retailer-reported sales per square foot for the 12 months ended Sept. 30 also rose to $852, compared with $742 in the year-earlier period, a gain of 14.8%. 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 drove retailer sales growth across the portfolio.
Simon raised its 2026 real estate funds from operations outlook to a range of $13.30 to $13.40 per diluted share, an increase of $0.10 a share from its previous estimate. The outlook revision followed growth in funds from operations in the third quarter and across the first nine months of the year. The company had about $9.0 billion in liquidity on Sept. 30, including $1.3 billion in cash, including its share of joint venture cash. Liquidity also included $7.7 billion of available capacity, net of outstanding commercial paper, under total revolving credit facilities of $8.5 billion. During the quarter ended Sept. 30, the company repurchased 1,137,182 common shares at an average price of $207.98 a share, for a total investment of $236.5 million.
The company said on Oct. 30 that an affiliate had entered into an agreement to acquire the open-air University Village center in Seattle. The center includes more than 100 retailers and services, according to a Simon statement. The company also held a call on Nov. 5 to discuss third-quarter results between 5 p.m. and 6 p.m. Eastern time. It said a replay of the call would remain available through Nov. 12.