Simon Property Group Caps Strong Year with Strategic Acquisitions and Record Returns, Outlines Aggressive 2026 Growth Plan

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INDIANAPOLIS – February 2, 2026 – 5:00 PM ET

Simon Property Group (NYSE: SPG), the world's premier owner of shopping, dining, entertainment, and mixed-use destinations, today concluded an earnings call detailing a year of strategic expansion and financial strength, setting the stage for continued growth in 2026.

Chairman, President, and CEO David Simon opened the call by highlighting "strong financial and operational results" for the fourth quarter, capping an "impressive year." The company achieved record real estate funds from operations (FFO) of $4.8 billion, or $12.73 per share, driven by solid fundamentals, strong occupancy, and accelerating shopper traffic. Notably, Simon returned approximately $3.5 billion to shareholders through buybacks and dividends in 2025, bringing its cumulative dividend payments since going public to roughly $48 billion.

The year was marked by aggressive portfolio enhancement. Chief Investment Officer Eli Simon outlined approximately $2 billion in high-quality acquisitions completed in 2025. These included two luxury outlet centers in Italy, a partner's stake in Miami's premier Brickell City Center, full ownership of Calvin Realty Group, and Phillips Place, a high-productivity retail center in Charlotte. "These deals enhance the quality of our portfolio," Eli Simon stated, emphasizing the company's intent to leverage its expertise to unlock further value.

Leasing activity remained robust, with over 4,600 leases signed for more than 17 million square feet in 2025, approximately 30% of which were new deals. The development pipeline is equally vigorous, with more than 20 major redevelopment projects completed last year and a future pipeline now exceeding $4 billion. Key 2026 openings include mixed-use phases at Northgate Station, expansions at The Shops at Mission Viejo, and the new Sagefield development in Nashville.

Chief Financial Officer Brian McDade provided the financial specifics: FFO per share grew 4.2% year-over-year in Q4 to $3.49. Portfolio net operating income (NOI) grew 5.1% for the quarter. Occupancy ended the year strong at 96.4% for malls and premium outlets and 99.2% for mills. The company's balance sheet remains A-rated with over $9 billion in liquidity.

Looking ahead, Simon issued 2026 FFO guidance of $13.00 to $13.25 per share, assuming domestic property NOI growth of at least 3%. The guidance factors in higher net interest expense and a cautious view on potential tenant credit issues, which executives primarily attributed to ongoing tariff pressures. "It is a headwind," David Simon acknowledged, noting it disproportionately affects smaller retailers. However, he expressed confidence in the company's ability to replace any departing tenants with more productive ones at higher rents.

During the Q&A session, analysts probed topics ranging from the early success of the Simon Plus loyalty program to the appetite for Class B mall spaces. Management expressed bullishness on the underlying economy, pointing to increased traffic and sales, and highlighted significant upside from redeveloping spaces vacated by retailers like Saks Off 5th.

Analyst & Investor Reactions:

Michael Thorne, Senior REIT Analyst at Clearwater Capital: "Simon continues to execute flawlessly on its dual strategy of curating a best-in-class portfolio and actively developing it. The 2026 guidance is prudent, embedding conservatism around tariffs while leaving ample room for upside from their massive redevelopment pipeline. The capital allocation—dividends, buybacks, and strategic acquisitions—remains a textbook case for the sector."

Sarah Chen, Portfolio Manager at Horizon Investments: "The sheer scale of their leasing volume—17 million square feet—is a powerful testament to the enduring demand for their physical spaces. Their move to fully own key assets like Calvin Realty gives them even more control to drive value. I'm particularly encouraged by the embedded growth from projects moving from the pipeline to completion."

Gregory "Ray" Hawthorn, Editor of The Retail Obituarist Newsletter: "A staggering $48 billion in dividends? It's a massive wealth transfer to shareholders while the underlying model faces existential threats. They're dancing on the deck of the Titanic, buying Italian outlets as the U.S. retail middle class gets crushed by tariffs. All this talk of 'redevelopment' is just a fancy term for shuffling deck chairs. Their guidance admits tariffs are a problem, but they're wildly underestimating the domino effect of bankruptcies coming in 2026."

Priya Desai, Independent Retail Consultant: "The focus on high-end luxury and experiential anchors is the right one. Simon isn't just a landlord; they're a placemaker. Their data on traffic growth contradicts the 'retail apocalypse' narrative. However, David Simon's candid comments on tariffs are a major red flag for the broader retail ecosystem. Simon may be insulated, but their tenants' suppliers and customers are not."

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