Simon Property Group, the Indianapolis-based mall and outlet real estate investment trust, raised its full-year 2026 profit guidance after second-quarter earnings showed accelerating leasing demand and rising retailer sales. The company reported Monday that per-share Real Estate Funds From Operations climbed 7.9% year-over-year, and it lifted its 2026 outlook for that measure for the second time this year.
Simon reported Real Estate FFO β a REIT profitability measure that adds back real estate depreciation to net income β of $1.249 billion, or $3.29 per diluted share, for the quarter ended June 30, up from $1.154 billion, or $3.05 per share, a year earlier, according to the company’s earnings release. Net income attributable to common stockholders was $483.1 million, or $1.49 per diluted share, down from $556.1 million, or $1.70 per share, in the second quarter of 2025. Simon attributed the year-over-year decline in net income to a one-time $0.21-per-share non-cash gain recorded in the prior-year period.
Total revenue rose to $1.79 billion from $1.5 billion, driven by lease income of $1.66 billion, up from $1.38 billion. Domestic property net operating income increased 8.5% and portfolio-wide NOI grew 8.3% compared with the same period last year.
“We delivered excellent financial and operational results this quarter,” said Eli Simon, Simon’s chief executive officer, president and chief operating officer, in the release. “Real Estate FFO per share grew 7.9% year-over-year, supported by consistent broad-based leasing demand, accelerated traffic increases, strong retailer sales growth, and the contribution from acquisitions completed over the past year.”
At Simon’s U.S. malls and premium outlets, occupancy held at 96.0%, unchanged from a year earlier. Base minimum rent climbed to $62.42 per square foot, up 6.3% from $58.70. Reported retailer sales reached $838 per square foot on a trailing 12-month basis, up 13.9% from $736 β evidence that tenants are generating more revenue even as occupancy held roughly steady. Simon’s results echo a broader leasing rebound in the commercial real estate sector this quarter, including at rival mall landlord Macerich, which also posted record sales per square foot in its own Q2 2026 report.
Guidance raised for the second time this year
Simon raised its full-year 2026 outlook for Real Estate FFO per diluted share to a range of $13.20 to $13.30, up from a prior range of $13.10 to $13.25 β an increase of 8 cents at the midpoint. Estimated net income per diluted share for 2026 is now projected between $6.47 and $7.47, down from a prior range of $6.61 to $6.76, which the company said reflects the timing of gains from asset dispositions and other one-time items rather than a change in operating performance.
Dividend increase and capital markets activity
Alongside earnings, Simon’s board declared a quarterly common stock dividend of $2.25 per share for the third quarter, up 4.7%, or 10 cents, from a year earlier. The dividend is payable September 30 to shareholders of record September 9. The board also declared a $1.046875-per-share dividend on the company’s 8-3/8% Series J preferred stock, payable the same date.
Simon repurchased 793,077 shares of common stock and 237,618 operating partnership units during the quarter at an average price of $205.10 per share, for a total of $211.4 million. On the financing side, the company closed eight secured loans totaling roughly $1.4 billion at a weighted average interest rate of 5.36%, priced a β¬500 million senior notes offering with a 3.65% coupon over five years, and closed a $460 million five-year term loan at SOFR plus 0.70% to repay a draw on its revolving credit facility. Simon reported approximately $9.3 billion in total liquidity as of June 30, including $1.7 billion in cash and $7.6 billion in available revolver capacity.
What it means
The results show Simon converting strong leasing conditions into higher core earnings even as it laps a one-time gain that had inflated last year’s net income. The FFO growth and second guidance increase of the year β both figures the company disclosed directly β indicate demand for mall and outlet space continued to firm through mid-2026 rather than cooling. Retailer sales growth of nearly 14% per square foot suggests tenants at Simon’s properties are outperforming broader retail sales trends, though the company did not break out how much of its NOI growth came from new leasing volume versus rent escalations on existing leases, or disclose specific development projects behind the acquisitions it credited for part of the quarter’s gains. Those are gaps in the disclosure, not confirmed facts, and RealtyWire has not independently verified them.
What to watch
Simon held a conference call the afternoon of the release to discuss results in more detail, with a replay available through August 17. Investors will be watching whether the retailer-sales gains and stable occupancy carry through the holiday shopping season, and whether the acquisition activity management cited as a growth driver continues into the second half. Simon’s third-quarter results, expected in November, will show whether this quarter’s guidance increase holds or gets revised again.
