Simon raises 2026 forecast as Q3 Real Estate FFO rises 4.7%

Simon (SPG) raised its 2026 Real Estate FFO per share forecast to $13.30 to $13.40 after third-quarter results. Revenue of $1.81 billion topped the $1.72 billion consensus.

Shares were little changed at 9:40 a.m. ET, from a $226.55 close.

Real estate funds from operations, or FFO, rose 4.7% to $1.277 billion, or $3.37 per diluted share, from $1.215 billion, or $3.22 per diluted share, a year earlier.

Net income attributable to common stockholders was $499.0 million, or $1.54 per diluted share, against $606.2 million, or $1.86 per diluted share, a year earlier. The quarter included non-cash after-tax losses of $99.6 million, or $0.27 per diluted share, from mark-to-market adjustments on the Klépierre exchangeable bonds and the revaluation of an equity security held by an unconsolidated Other Platform Investment.

Here's how the company did:

• Real Estate FFO: $3.37 per diluted share vs. $3.22 a year earlier
• FFO: $3.09 per diluted share vs. $3.25 a year earlier
• Net income: $1.54 per diluted share vs. $1.86 a year earlier
• Revenue: $1.81 billion vs. $1.60 billion a year earlier, $1.72 billion expected

2026 guidance

The company raised its full-year Real Estate FFO per diluted share forecast to $13.30 to $13.40, from $13.20 to $13.30 previously, an increase of $0.10.

Its net income per diluted share forecast for 2026 is now $6.32 to $6.42, from $6.47 to $6.57.

For the first nine months, Real Estate FFO rose 6.3% to $3.733 billion, or $9.82 per diluted share, from $3.484 billion, or $9.24 per diluted share, a year earlier. Net income attributable to common stockholders was $1.462 billion, or $4.51 per diluted share, against $1.576 billion, or $4.83 per diluted share, a year earlier.

Property performance

Domestic property net operating income, or NOI, rose 6.6% in the quarter, and portfolio NOI rose 6.7% from a year earlier.

U.S. Malls and Premium Outlets occupancy was 96.5% at Sept. 30, up from 96.4% a year earlier. Base minimum rent per square foot was $62.75, up 6.1% from $59.14.

Reported retailer sales per square foot for the trailing 12 months were $852, up 14.8% from $742 a year earlier.

Dividend and buybacks

The board declared a quarterly common dividend of $2.30 per share for the fourth quarter, an increase of $0.10, or 4.5%, from a year earlier. It is payable Dec. 31 to holders of record on Dec. 10.

The company repurchased 1,137,182 shares in the quarter at an average price of $207.98, for a total of $236.5 million.

Liquidity and debt

The company completed a two-tranche senior notes offering totaling $800 million, with a weighted-average term of 7.7 years and a weighted-average coupon of 5.45%.

It also completed seven secured loan transactions totaling about $970 million, at a weighted-average interest rate of 6.33%.

At Sept. 30, liquidity was about $9.0 billion, including $1.3 billion of cash on hand and $7.7 billion of available capacity, net of outstanding commercial paper, under $8.5 billion of total revolving credit facilities.