Simon Property Group (NYSE:SPG) executives told investors the company delivered “strong financial and operational results” in the fourth quarter, highlighting record real estate funds from operations, steady leasing demand, and a growing redevelopment pipeline heading into 2026.
Record 2025 real estate FFO and shareholder returns
Chairman, CEO and President David Simon said the fourth quarter capped “another impressive year,” pointing to leasing momentum, acquisitions, redevelopment activity, and a new premium outlet opening in Indonesia. The company reported record real estate FFO of $4.8 billion, or $12.73 per share, for the year.
Acquisitions and redevelopment pipeline expand
Chief Operating Officer Eli Simon detailed a series of 2025 investments totaling roughly $2 billion, including:
- The Mall and two luxury outlet centers in Italy
- The company’s partners’ interest in Brickell City Centre in Miami
- The remaining 12% interest in Taubman Realty Group that Simon did not previously own
- Phillips Place, an open-air retail center in Charlotte
Eli Simon said the transactions “enhance the quality of our portfolio,” and that Simon plans to apply its leasing and property management approach to pursue “new growth and value creation opportunities” at the acquired properties.
On development, management said more than 20 significant redevelopment projects were completed in 2025, spanning retail, experiential, and mixed-use additions at properties including Southdale Center, Stanford Shopping Center, King of Prussia, the Forum Shops at Caesars, Northgate Station, and Lakeline Mall. For 2026, the company expects additional retail and mixed-use projects to come online, including work at Brea Mall, Northgate Station’s first residential phase, The Shops at Mission Viejo, Briarwood Mall, and Tacoma Mall. The company also expects to begin new projects, including anchor redevelopments at The Fashion Mall at Keystone and Town Center at Boca Raton.
At year-end, management said Simon’s share of net development costs across all platforms was about $1.5 billion at a blended yield of 9%, with about 45% of net costs tied to mixed-use projects. The company’s pipeline of development and redevelopment opportunities now exceeds $4 billion.
Leasing demand, occupancy and sales trends
Leasing demand remained a core theme. Eli Simon said the company signed more than 1,300 leases totaling over 4.4 million square feet during the quarter and more than 4,600 leases for over 17 million square feet for the year. About 30% of annual leasing volume was new deals, which management said reflected continued demand across the portfolio.
In response to an analyst question, CFO Brian McDade said new rents on leases were approximately $65 per square foot and the company expects that level to continue into 2026. He added that the leasing pipeline year to date is up about 15% versus last year and described demand as “increasing.”
McDade reported real estate FFO of $3.49 per share in the fourth quarter, up from $3.35 in the prior year, a 4.2% increase. Domestic property net operating income (NOI) grew 4.8% year-over-year in the quarter and 4.4% for the year. Portfolio NOI, including international properties on a constant currency basis, increased 5.1% in the quarter and 4.7% for the year.
Malls and premium outlets ended the year at 96.4% occupancy, while “the mills” ended at 99.2%. Management said the addition of the TRG assets reduced occupancy by 20 basis points for malls and premium outlets and by 30 basis points for the mills, and that the company expects to raise occupancy as it executes its leasing strategy at those assets.
Average base minimum rents rose 4.7% year-over-year for malls and premium outlets, with TRG contributing about 250 basis points to that growth. Retailer sales per square foot for malls and premium outlets were $799 for the year, and the SPG-only portfolio was up 2% year-over-year. Management said total sales volumes increased about 4% in the fourth quarter and 3% for the full year, while occupancy cost ended the year at 12.7%.
Balance sheet activity and 2026 guidance
McDade said Simon completed about $9 billion of financing activity during 2025, including a $1.5 billion dual-tranche U.S. senior notes offering with a combined average term of 7.8 years and a weighted average coupon of 1.77%. The company also completed $7 billion of secured loan refinancings and extensions.
After year-end, Simon issued $800 million of 5-year notes at a spread of 65 basis points over the 5-year Treasury and used proceeds to repay $800 million of notes that matured Jan. 15, 2026. Management cited an A-rated balance sheet with more than $9 billion of liquidity at year-end and net debt to EBITDA of 5.0x.
For capital returns, the company paid more than $3.2 billion in common stock dividends in 2025 and repurchased over 1.2 million shares for about $227 million. After year-end, Simon repurchased an additional 273,000 shares for $50 million. The company announced a first-quarter dividend of $2.20 per share, up $0.10, or 4.8%, year-over-year, payable March 31.
Looking ahead, Simon guided to 2026 real estate FFO of $13.00 to $13.25 per share (midpoint $13.13), assuming domestic property NOI growth of at least 3%. The range also reflects higher net interest expense of $0.25 to $0.30 per share versus 2025 due to market interest rates. On redevelopments delivering in 2026, McDade told analysts to expect about a $30 million contribution from projects completing this year, while noting many openings are back-end weighted toward the fourth quarter.
Tariffs, retailer health, and other call highlights
During Q&A, David Simon said tariffs are putting pressure on retailers and described the impact as more pronounced for smaller players. He said management is “a little more cautious,” but also noted that retailer demand, traffic, and sales trends are moving in the right direction and that weaker retailers can often be replaced by more productive tenants at higher rents.
Executives also discussed early results from the Simon Plus loyalty program, launched in November. Eli Simon said adoption has been strong and that a holiday activation generated “organic buzz” and helped increase traffic “a bit,” with a continued focus in 2026 on adding rewards, retailers, and partnerships with other loyalty programs.
On a separate topic, David Simon addressed an investment tied to Saks Global, saying the company wrote off its investment at the end of the fourth quarter, but described lease and property rights the company received in connection with the transaction, including rights related to leases, buildings, and approvals under REAs. He also said Simon has received redemption notices on exchangeable euro debt and has issued about 1.5 million shares to satisfy puts.
Management reiterated its approach to guidance as conservative at the start of the year, with potential upside tied to sales trends, leasing, occupancy, and contributions from ancillary businesses, while acknowledging that bankruptcies and tenant delays can occur.
About Simon Property Group (NYSE:SPG)
Simon Property Group, Inc (NYSE: SPG) is a publicly traded real estate investment trust (REIT) that owns, develops and manages retail real estate properties. Its core business activities include acquisition, development, leasing and property management of regional malls, outlet centers and mixed‑use retail destinations. The company operates retail brands that include high‑profile regional shopping centers and the Premium Outlets platform, and it provides services such as tenant leasing, marketing, property operations and capital projects to optimize asset performance.
Simon’s portfolio spans a broad mix of enclosed malls, open‑air centers, outlet properties and mixed‑use developments, and the company pursues redevelopment and repositioning to adapt properties to changing consumer and retail trends.
