- Record Real Estate FFO: Achieved $4.8 billion or $12.73 per share in 2025, driven by strong leasing and operations.
- $2 Billion in Acquisitions: Purchased high-quality retail properties like The Mall in Italy and Phillips Place in Charlotte.
- Leasing Momentum: Signed 1,300+ leases totaling 4.4 million sq ft in Q4 2025 and 4,600+ leases for 17 million sq ft annually.
- 2026 FFO Guidance: Targets $13–$13.25 per share, with $3.49 per share reported in Q4 2025 (4.2% growth).
- Occupancy Rates: Malls/premium outlets at 96.4%, mills at 99.2%, with 4.7% YoY increase in average base minimum rents.
Operational Highlights
The company achieved significant milestones in 2025, including the acquisition of high-quality retail properties such as The Mall in Italy, Brickell City Center in Miami, and Phillips Place in Charlotte. The pipeline of new development and redevelopment opportunities now exceeds $4 billion, with over 1,300 leases signed totaling more than 4.4 million square feet during the quarter. As Brian McDade noted, the leasing pipeline is up about 15% over last year, driven by the new tenant mix and improved cash flow.
Valuation and Growth Prospects
With a P/E Ratio of 39.92 and an EV/EBITDA of 13.46, the market is pricing in a certain level of growth for Simon Property Group. Analysts estimate next year's revenue growth at 3.2%. The company's guidance for 2026 expects real estate FFOs of $13 to $13.25 per share, with a midpoint of $13.13. The Dividend Yield stands at 4.47%, indicating an attractive return for income investors.
Outlook and Challenges
The company faces challenges such as tariffs affecting retailers and potential bankruptcies. However, David Simon mentioned that the retailers that don't make it were not highly productive, and the company can replace them with more productive retailers or higher rents, indicating upside in the existing portfolio. The company's focus on redevelopment projects and enhancing its properties is expected to drive higher occupancy and earnings growth.