Simon Property Q2 FFO Beats Estimates on Higher Revenues & Occupancy

Simon Property Group, Inc.’s SPG second-quarter 2025 real estate funds from operations (FFO) per share of $3.05 surpassed the Zacks Consensus Estimate of $3.04. This compares favorably with the real estate FFO of $2.93 a year ago.

Results reflect an increase in revenues, backed by a rise in the base minimum rent per square foot and occupancy levels. SPG raised its guidance for 2025 real estate FFO per share at the midpoint.

Simon Property generated revenues of $1.50 billion in the quarter, which missed the Zacks Consensus Estimate of $1.51 billion. However, the reported figure increased 2.8% year over year.

According to David Simon, the chairman, CEO and president of Simon Property Group, "We delivered another successful quarter, driven by the quality of our portfolio and disciplined execution.” He further added, “Our strategic investments and A-rated balance sheet position us for sustained long-term cash flow growth. Today, we are raising our dividend and increasing the mid-point of our full-year 2025 Real Estate FFO guidance.”

SPG’s Second Quarter in Detail

SPG reported revenues from lease income of $1.38 billion, 4.8% higher than the prior-year period’s figure. Our estimate was pegged at $1.36 billion.

As of June 30, 2025, the occupancy for the U.S. Malls and Premium Outlets portfolio came in at 96%, up 40 basis points from 95.6% as of June 30, 2024. We projected the metric to be 95.7%.

The base minimum rent per square foot for the U.S. Malls and Premium Outlets portfolio was $58.70 as of June 30, 2025, rising from $57.94 as of June 30, 2024. This reflected an increase of 1.3%.

Domestic property net operating income (NOI) increased 4.2% year over year, and portfolio NOI rose 4.7%.

SPG’s Portfolio Activity

In June 2025, Simon Property acquired its partner’s stake in the retail and parking facilities at Brickell City Centre in Miami, FL. The company now wholly owns the asset.

Balance Sheet Position of SPG

Simon Property exited the second quarter of 2025 with $9.2 billion of liquidity. This comprised $1.8 billion of cash on hand, including its share of joint venture cash and $7.4 billion of available capacity under the company’s revolving credit facilities.

SPG’s Outlook for 2025

Simon Property has narrowed its outlook for 2025 real estate FFO per share. The company now expects the same to be between $12.45 and $12.65 from the earlier guided range of $12.40-12.65, raising the midpoint to $12.55. The Zacks Consensus Estimate of $12.45 lies at the lower end of the range.

SPG’s Dividend Update

Concurrent with its second-quarter earnings release, Simon Property announced a quarterly common stock dividend of $2.15 for the third quarter of 2025. This marks an increase of 4.9% year over year. The dividend will be paid out on Sept. 30 to shareholders of record as of Sept. 9, 2025.

SPG’s Zacks Rank

Currently, SPG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Simon Property Group, Inc. Price and EPS Surprise

Simon Property Group, Inc. price-eps-surprise | Simon Property Group, Inc. Quote

Performance of Other Retail REITs

Regency Centers Corporation REG reported second-quarter 2025 NAREIT FFO per share of $1.16, outpacing the Zacks Consensus Estimate of $1.12. The figure increased 9.4% from the prior-year quarter.

REG's results reflected healthy leasing activity. During the quarter, same-property and base rents improved year over year.

Kimco Realty Corp. KIM reported second-quarter 2025 FFO per share of 44 cents, beating the Zacks Consensus Estimate of 43 cents. The metric rose 7.3% from the year-ago quarter.

Results reflected higher same-property NOI due to a rise in minimum rents. However, lower occupancy owing to tenant bankruptcies and higher interest expenses acted as dampeners.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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