Simon Property Group 8-K
EarningsGuidance lowered
Mall and Premium Outlets leasing gains support raised FY2026 Real Estate FFO guidance of $13.30–$13.40/share; investment marks hit GAAP earnings.
Filed 2026-11-05 16:08 ET
- 2.02 Results of Operations
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results. Revenue growth slowed to +13.3% Y/Y from +19.5% in Q2, while continued leasing momentum, higher rents and occupancy, and faster shopper-traffic growth supported retailer sales and portfolio net operating income.
FY2026 diluted EPS guidance was lowered to $6.32-$6.42 from $6.47-$6.57. Real Estate funds from operations (Real Estate FFO) per diluted share, a non-GAAP measure adjusted for certain equity-investment and fair-value items, was raised to $13.30-$13.40 from $13.20-$13.30; funds from operations (FFO) per diluted share was lowered to $12.60-$12.70 from $12.77.
Developments
- Redevelopment pipeline: Simon forecast $570M of net cash investment across FY2026-FY2027, with an expected stabilized return of 9%.
Results with guidance
| Metric | Q3 2026 actual | 9M 2026 | FY2026 guide |
|---|---|---|---|
| Diluted EPS | $1.54-17% Y/Y, +3.4% Q/Q | $4.51-6.6% Y/Y | $6.32-$6.42lowered from $6.47-$6.57 |
| Estimated Real Estate FFO per share (non-GAAP) | — | — | $13.30-$13.40raised from $13.20-$13.30 |
| Estimated FFO per diluted share (non-GAAP) | — | — | $12.60-$12.70lowered from $12.77 |
Results without guidance
| Metric | Q3 2026 | Change | 9M 2026 |
|---|---|---|---|
| Revenue | $1.81B | +13% Y/Y, +1.3% Q/Q | $5.36B+17% Y/Y |
| Net income | $499M | -18% Y/Y, +3.3% Q/Q | $1.46B-7.3% Y/Y |
| Cash and cash equivalents | $570M | -44% Q/Q | — |
| Total debt | $28.4B | -1.0% Q/Q | — |
What moved the numbers
- A $99.6M after-tax non-cash loss ($0.27 per diluted share) from mark-to-market adjustments on Klépierre exchangeable bonds and revaluation of a publicly traded equity security affected GAAP earnings. Operating income before other items was $804M vs $813M.
- Real Estate FFO was $1.28B, or $3.37 per diluted share vs $3.22 Y/Y (+4.7% per share); FFO was $1.17B, or $3.09 per diluted share vs $3.25 (-4.9% per share).
- Domestic property net operating income (NOI) grew 6.6% and portfolio NOI 6.7% Y/Y. U.S. malls and Premium Outlets occupancy was 96.5% vs 96.4%; base rent was $62.75 per square foot vs $59.14 (+6.1%); trailing-12-month retailer sales per square foot were $852 vs $742 (+14.8%).
- The board declared a $2.30 Q4 common dividend, up $0.10 (+4.5% Y/Y), payable 12/31/2026 to holders of record 12/10/2026. Simon repurchased 1.14M shares for $236.5M at an average $207.98; common shares outstanding fell 1.09M Q/Q to 322M.
- Capital markets: $800M of two-tranche senior notes with a 7.7-year weighted-average term and 5.45% weighted-average coupon, plus $970M of secured loans at a 6.33% weighted-average rate. Together, the financings were ≈6.2% of quarter-end consolidated debt of $28.4B, which includes them; reported liquidity was $9.0B.
Figures extracted from the filings and checked against their text; changes and verdicts computed from them.
The summary is written by an AI model reading the filing.
Model 005 · prompt v189 · 2026-11-06 16:04:58Z