S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
INDIANAPOLIS - Simon Property Group (NYSE:SPG), a premier shopping center REIT, reported second quarter earnings that exceeded analyst expectations, driven by strong occupancy rates and increased rental income.
SPG shares were trading flat following the release.
The company reported second quarter earnings per share of $1.70, beating the analyst estimate of $1.55 by $0.15. Revenue came in at $1.5 billion, surpassing the consensus estimate of $1.38 billion. The company’s Real Estate Funds From Operations (FFO) reached $3.05 per diluted share, a 4.1% increase from $2.93 in the same quarter last year.
Simon Property Group also raised its full-year 2025 guidance, now expecting earnings per share between $6.63 and $6.83, above the analyst consensus of $6.53. The company increased the midpoint of its Real Estate FFO outlook to a range of $12.45 to $12.65 per diluted share.
"We delivered another successful quarter, driven by the quality of our portfolio and disciplined execution," said David Simon, Chairman, Chief Executive Officer and President. "Our strategic investments and A-rated balance sheet position us for sustained long-term cash flow growth."
The company’s domestic property Net Operating Income increased 4.2% compared to the prior year period, while portfolio NOI rose 4.7%. Occupancy at U.S. malls and premium outlets reached 96.0% as of June 30, 2025, up 0.4% from 95.6% a year earlier. Base minimum rent per square foot increased 1.3% to $58.70.
Simon’s Board of Directors declared a quarterly dividend of $2.15 per share for the third quarter of 2025, representing a 4.9% increase year-over-year.
The company strengthened its portfolio by acquiring its partner’s interest in the retail and parking facilities at Brickell City Centre in Miami, Florida, making Simon the sole owner and manager of the asset.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.