Simon Property Group (NYSE:SPG) Releases Earnings Results, Misses Estimates By $0.15 EPS

Simon Property Group (NYSE:SPG) posted its quarterly earnings data on Monday. The real estate investment trust reported $1.49 EPS for the quarter, missing the consensus estimate of $1.64 by ($0.15), Zacks reports. The firm had revenue of $1.79 billion for the quarter, compared to analysts’ expectations of $1.61 billion. Simon Property Group had a return on equity of 91.46% and a net margin of 66.56%.The firm’s quarterly revenue was up 19.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.70 earnings per share. Simon Property Group updated its FY 2026 guidance to 13.200-13.300 EPS.

Here are the key takeaways from Simon Property Group’s conference call:

• Positive Sentiment: Second-quarter domestic property NOI rose 8.5% and real estate FFO per share increased 7.9% year over year to $3.29, prompting the company to raise full-year 2026 FFO guidance to $13.20–$13.30 per share.
• Positive Sentiment: Leasing demand remained strong: Simon signed more than 1,200 leases covering 4.8 million square feet, with new-leasing rents up 17% and tenant allowances down 12% year to date. Occupancy held at 96% despite absorbing roughly 1 million square feet returned through Saks OFF 5TH’s bankruptcy.
• Positive Sentiment: Replacing Saks OFF 5TH locations is expected to substantially improve economics, with signed replacement leases for about half the space already generating more than $18 million in former annual rent versus approximately $44 million when fully leased; most of the benefit is expected in 2027.
• Positive Sentiment: Retailer sales and traffic accelerated, with comparable sales up 5.7% in the quarter, total sales volume up 7.6%, and July traffic up 3.6%. Management said strength was broad-based across malls, outlets, luxury, emerging brands, and younger-consumer categories.
• Negative Sentiment: Higher interest expense and lower interest income reduced year-over-year FFO by $0.06 per share, while roughly $4.5 billion of unsecured debt matures in the second half of 2027. Management expects to refinance successfully but acknowledged continued exposure to elevated interest rates.

Simon Property Group Stock Performance

Shares of NYSE:SPG traded down $0.03 during trading on Wednesday, hitting $219.50. The stock had a trading volume of 40,605 shares, compared to its average volume of 1,722,991. The stock has a market capitalization of $71.18 billion, a price-to-earnings ratio of 15.48, a price-to-earnings-growth ratio of 2.85 and a beta of 1.30. Simon Property Group has a 12-month low of $169.11 and a 12-month high of $238.50. The stock has a 50-day simple moving average of $221.47 and a two-hundred day simple moving average of $205.34. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 4.68.

Simon Property Group Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 9th will be paid a dividend of $2.25 per share. This represents a $9.00 annualized dividend and a yield of 4.1%. The ex-dividend date is Wednesday, September 9th. Simon Property Group’s payout ratio is presently 63.47%.

More Simon Property Group News

Here are the key news stories impacting Simon Property Group this week:

• Positive Sentiment: Funds from operations (FFO) exceeded expectations: Second-quarter FFO was $3.29 per share, up from $3.05 a year earlier and above the $3.18 consensus estimate. Revenue increased 19.5% year over year to approximately $1.8 billion, also surpassing forecasts. Q2 FFO and revenue results
• Positive Sentiment: Management raised its 2026 outlook: Full-year guidance was set at $13.20-$13.30 per share, broadly in line with the $13.21 analyst consensus, reflecting confidence in leasing, retailer sales and acquisition contributions. Simon second-quarter results and guidance
• Positive Sentiment: Leasing momentum remains strong: Retailer sales rose 13.9%, while record leasing activity and improving shopper traffic supported operating performance. Simon is re-leasing former Saks Off 5th locations at materially higher market rents, potentially more than doubling the roughly $18 million in annual rent previously associated with the vacated space. Saks store closures and higher rents
• Positive Sentiment: Analyst support and income appeal: Ladenburg Thalmann raised its price target to $275 from $250 and maintained a Buy rating. Simon also declared a $2.25 quarterly dividend, representing an annualized yield of approximately 4.1%. Simon price-target increase
• Neutral Sentiment: Simon’s strong revenue and FFO performance was partly offset by mixed headline earnings metrics and continued attention to its highly leveraged balance sheet.
• Negative Sentiment: Reported EPS missed estimates: Quarterly EPS was $1.49 versus the $1.64 consensus and declined from $1.70 a year earlier. The guidance increase was also only slightly above the existing consensus, limiting the potential for a major earnings-related stock catalyst. Simon Q2 FFO and revenue report

Analysts Set New Price Targets

SPG has been the subject of a number of recent analyst reports. UBS Group boosted their target price on shares of Simon Property Group from $199.00 to $222.00 and gave the company a “neutral” rating in a research note on Thursday, July 9th. Weiss Ratings upgraded Simon Property Group from a “buy (b)” rating to a “buy (b+)” rating in a report on Tuesday, July 14th. Stifel Nicolaus raised their target price on shares of Simon Property Group from $194.00 to $209.00 and gave the company a “hold” rating in a research report on Tuesday. Jefferies Financial Group upgraded shares of Simon Property Group to a “strong-buy” rating in a research note on Friday, June 26th. Finally, Piper Sandler lifted their price objective on shares of Simon Property Group from $230.00 to $285.00 and gave the company an “overweight” rating in a report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $221.07.

Insider Activity

In other Simon Property Group news, Director Larry C. Glasscock purchased 397 shares of Simon Property Group stock in a transaction that occurred on Tuesday, June 30th. The stock was bought at an average price of $223.38 per share, with a total value of $88,681.86. Following the acquisition, the director owned 45,902 shares of the company’s stock, valued at $10,253,588.76. This trade represents a 0.87% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Marta R. Stewart purchased 182 shares of the company’s stock in a transaction that occurred on Tuesday, June 30th. The stock was bought at an average cost of $223.16 per share, for a total transaction of $40,615.12. Following the purchase, the director directly owned 18,000 shares in the company, valued at $4,016,880. This trade represents a 1.02% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders acquired 2,387 shares of company stock valued at $533,056 over the last 90 days. Company insiders own 8.73% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Great Valley Advisor Group Inc. raised its stake in shares of Simon Property Group by 2.3% in the fourth quarter. Great Valley Advisor Group Inc. now owns 2,360 shares of the real estate investment trust’s stock valued at $437,000 after purchasing an additional 52 shares in the last quarter. Veridan Wealth LLC increased its holdings in Simon Property Group by 1.2% in the 4th quarter. Veridan Wealth LLC now owns 4,563 shares of the real estate investment trust’s stock valued at $845,000 after buying an additional 53 shares during the period. VestGen Advisors LLC raised its stake in shares of Simon Property Group by 1.8% in the 4th quarter. VestGen Advisors LLC now owns 4,096 shares of the real estate investment trust’s stock valued at $758,000 after buying an additional 74 shares in the last quarter. Keel Point LLC raised its stake in shares of Simon Property Group by 4.5% in the 4th quarter. Keel Point LLC now owns 1,849 shares of the real estate investment trust’s stock valued at $342,000 after buying an additional 80 shares in the last quarter. Finally, Renaissance Group LLC lifted its holdings in shares of Simon Property Group by 1.2% during the 4th quarter. Renaissance Group LLC now owns 6,905 shares of the real estate investment trust’s stock worth $1,278,000 after acquiring an additional 85 shares during the period. 93.01% of the stock is currently owned by institutional investors and hedge funds.

Simon Property Group Company Profile

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.