Simon Property Group reported results for the three months through June 30 and raised its full-year profit guidance for real estate funds from operations. The company’s FFO per diluted share climbed to $3.29 from $3.05 in the prior-year quarter, while net operating income at domestic properties grew 8.5%. Management lifted its full-year real estate FFO range to $13.20 to $13.30 per share, moving the midpoint up by $0.08.
Tenant performance drove much of the improvement. Reported retailer sales reached $838 per square foot over the year through June 30, compared with $736 a year earlier on June 30, 2025. That strength enabled the company to raise base minimum rent per square foot to $62.42 from $58.70. The board also declared a third-quarter dividend of $2.25 per share, $0.10 higher than the prior year, payable on September 30 to shareholders of record by September 9. Simon invested $211.4 million in stock repurchases at an average price of $205.10 per share and maintained approximately $9.3 billion in liquidity at the end of the quarter.
However, certain metrics presented a more tempered picture. Net income for common stockholders was $483.1 million, or $1.49 per diluted share, down from $1.70 a year earlier. Plain FFO also declined to $3.12 from $3.15. Occupancy remained flat at 96.0% on June 30, 2026 compared with the prior year, indicating rent gains derived from higher pricing rather than increased occupancy. Management attributed part of the 7.9% growth in real estate FFO per share to acquisitions. Secured loans completed during the quarter carried a weighted average interest rate of 5.36%, reflecting elevated borrowing costs.
Investor positioning shifted notably lower during the period. Hedge fund ownership fell to 34 funds from 48 in the prior quarter, suggesting meaningful professional money reduced or exited positions. The forward price-to-earnings multiple stood at 30.77 as of September 8, leaving limited margin for error if quarterly results disappoint. The company provided new net income guidance spanning $6.47 to $7.47 per share, a considerably wider range than prior guidance of $6.61 to $6.76.
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