third quarter 2026
Filed Nov 5, 2026Simon Reports Third Quarter 2026 Results, Increases Guidance for Full Year 2026 Real Estate FFO Per Share and Raises Quarterly Dividend
Real Estate FFO per share increased to $3.37 from $3.22, domestic property NOI increased 6.6%, portfolio NOI increased 6.7%, and full-year Real Estate FFO per share guidance was raised. GAAP net income attributable to common stockholders declined to $499.0 million from $606.2 million, including $99.6 million of non-cash after-tax losses from mark-to-market adjustments and an equity-security revaluation.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $1.81B | – | – |
| Lease income, three months ended September 30, 2026GAAP | $1.68B | – | – |
| Management fees and other revenues, three months ended September 30, 2026GAAP | $46.18M | – | – |
| Other income, three months ended September 30, 2026GAAP | $86.98M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $1.01B | – | – |
| Property operating expenses, three months ended September 30, 2026GAAP | $180.8M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $510.8M | – | – |
| Real estate taxes, three months ended September 30, 2026GAAP | $126.3M | – | – |
| Repairs and maintenance, three months ended September 30, 2026GAAP | $31.6M | – | – |
| Advertising and promotion, three months ended September 30, 2026GAAP | $35.95M | – | – |
| Home and regional office costs, three months ended September 30, 2026GAAP | $70.35M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | $11.16M | – | – |
| Other expense, three months ended September 30, 2026GAAP | $43.12M | – | – |
| Operating income before other items, three months ended September 30, 2026GAAP | $804.5M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$287.6M | – | – |
| Income from unconsolidated entities, three months ended September 30, 2026GAAP | $153.0M | – | – |
| Consolidated net income, three months ended September 30, 2026GAAP | $565.3M | – | – |
| Net income attributable to common stockholders, three months ended September 30, 2026GAAP | $499M | – | – |
| Net income attributable to common stockholders per diluted share, three months ended September 30, 2026GAAP | $1.54 per diluted share | – | – |
| FFO of the Operating Partnership, three months ended September 30, 2026non-GAAP | $1.17B | – | – |
| Diluted FFO per share, three months ended September 30, 2026non-GAAP | $3.09 per diluted share | – | -4.9 % |
| Real Estate FFO, three months ended September 30, 2026non-GAAP | $1.28B | – | 4.7% |
| Real Estate FFO per share, three months ended September 30, 2026non-GAAP | $3.37 per diluted share | – | 4.7% |
| Domestic property NOI, three months ended September 30, 2026non-GAAP | $1.54B | – | 6.6 % |
| Portfolio NOI, three months ended September 30, 2026non-GAAP | $1.63B | – | 6.7 % |
| Beneficial interest of Combined NOI, three months ended September 30, 2026non-GAAP | $1.78B | – | 1.9 % |
| Funds available for distribution, three months ended September 30, 2026non-GAAP | $1.14B | – | – |
| Total revenue, nine months ended September 30, 2026GAAP | $5.36B | – | – |
| Net income attributable to common stockholders, nine months ended September 30, 2026GAAP | $1.46B | – | – |
| Net income attributable to common stockholders per diluted share, nine months ended September 30, 2026GAAP | $4.51 per diluted share | – | – |
| Real Estate FFO, nine months ended September 30, 2026non-GAAP | $3.73B | – | 6.3% |
| Real Estate FFO per share, nine months ended September 30, 2026non-GAAP | $9.82 per diluted share | – | 6.3% |
| FFO of the Operating Partnership, nine months ended September 30, 2026non-GAAP | $3.46B | – | – |
| Diluted FFO per share, nine months ended September 30, 2026non-GAAP | $9.12 per diluted share | – | 0.6 % |
| Domestic property NOI, nine months ended September 30, 2026non-GAAP | $4.52B | – | 7.3 % |
| Portfolio NOI, nine months ended September 30, 2026non-GAAP | $4.81B | – | 7.2 % |
| Funds available for distribution, nine months ended September 30, 2026non-GAAP | $3.30B | – | – |
| U.S. Malls and Premium Outlets total portfolio occupancy at September 30, 2026other | 96.5% | – | 0.1% increase |
| U.S. Malls and Premium Outlets total portfolio base minimum rent per square foot at September 30, 2026other | $62.75 | – | 6.1% |
| Reported retailer sales per square foot, trailing 12 months ended September 30, 2026other | $852 | – | 14.8% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
year ending December 31, 2026 outlook
- NoteEstimated net income attributable to common stockholders per diluted share: $6.32 to $6.42
- NoteEstimated Real Estate FFO per share: $13.30 to $13.40
Capital returns
- Quarterly common stock dividend of $2.30 for the fourth quarter of 2026, payable on December 31, 2026 to shareholders of record on December 10, 2026.
- The quarterly common stock dividend is an increase of $0.10, or 4.5% year-over-year.
- Repurchased 1,137,182 shares of common stock at an average price of $207.98 per share for a total investment of $236.5 million during the quarter ended September 30, 2026.
- Quarterly dividend on 8 3/8% Series J Cumulative Redeemable Preferred Stock of $1.046875 per share, payable on December 31, 2026 to shareholders of record on December 17, 2026.
What drove it
- Domestic property NOI increased 6.6% and portfolio NOI increased 6.7% compared to the prior-year quarter.
- Occupancy, base minimum rent per square foot, and reported retailer sales per square foot increased at U.S. Malls and Premium Outlets.
- Fixed lease income was $ 1,354,145 (In thousands), compared with $ 1,173,555 (In thousands), and variable lease income was $ 327,248 (In thousands), compared with $ 279,375 (In thousands), for the three months ended September 30.
- Leasing momentum continued, rents and occupancy increased, and shopper traffic growth accelerated for the third consecutive quarter, according to the Chief Executive Officer.
Concerns
- Net income attributable to common stockholders declined to $499.0 million, or $1.54 per diluted share, from $606.2 million, or $1.86 per diluted share.
- The third quarter included non-cash after-tax losses of $99.6 million, or $0.27 per diluted share, from unrealized mark-to-market adjustments attributable to the Klépierre exchangeable bonds and the revaluation of an equity security held by an unconsolidated Other Platform Investment.
- FFO was $1.172 billion, or $3.09 per diluted share, compared with $1.228 billion, or $3.25 per diluted share.
- Interest expense was $ 287,590 (Dollars in thousands), compared with $ 242,790 (Dollars in thousands).
- Total operating expenses were $ 1,010,106 (Dollars in thousands), compared with $ 788,658 (Dollars in thousands).
What to watch
- Delivery against estimated Real Estate FFO per share of $13.30 to $13.40 for the year ending December 31, 2026.
- Occupancy, base minimum rent per square foot, retailer sales per square foot, leasing activity, and domestic property NOI growth.
- The effect of unrealized fair-value changes in publicly traded equity instruments and derivative instruments, which were losses of $ 129,565 (Dollars in thousands) in the third quarter.
- Refinancing and maturity execution following the $800 million senior notes offering, approximately $970 million of secured loan transactions, and the reported debt maturity schedule.
Balance sheet and cash flow
- Approximately $9.0 billion of liquidity as of September 30, 2026, consisting of $1.3 billion of cash on hand, including its share of joint venture cash, and $7.7 billion of available capacity, net of outstanding commercial paper, under $8.5 billion of total revolving credit facilities.
- Cash and cash equivalents were $ 569,941 (Dollars in thousands) at September 30, 2026, compared with $ 823,147 (Dollars in thousands) at December 31, 2025.
- Mortgages and unsecured indebtedness were $ 28,423,903 (Dollars in thousands) at September 30, 2026, compared with $ 28,430,175 (Dollars in thousands) at December 31, 2025.
- Our Share of Total Indebtedness was $ 35,352,154 (In thousands), with a 4.27 % weighted average end of period interest rate and 6.4 weighted average years to maturity.
- Completed a two-tranche senior notes offering totaling $800 million, with a weighted-average term of 7.7 years and a weighted-average coupon rate of 5.45%.
- Completed seven secured loan transactions totaling approximately $970 million (U.S. dollar equivalent), with a weighted-average interest rate of 6.33%.
- Capital Expenditures for the Nine Months Ended 9/30/26 were $ 694,964 (In thousands) for consolidated properties and $ 206,877 (In thousands) for unconsolidated properties, our share.
Analysis
Third-quarter operating results showed continued strength in Simon's core property portfolio. Total revenue was $ 1,814,556 (Dollars in thousands), versus $ 1,601,572 (Dollars in thousands), with lease income of $ 1,681,393 (Dollars in thousands), versus $ 1,452,930 (Dollars in thousands). Domestic property NOI increased 6.6% and portfolio NOI increased 6.7%. U.S. Malls and Premium Outlets total portfolio occupancy reached 96.5%, while base minimum rent per square foot rose to $62.75 and trailing-12-month retailer sales per square foot rose to $852.
Real Estate FFO was $1.277 billion, or $3.37 per diluted share, compared with $1.215 billion, or $3.22 per diluted share, an increase of 4.7%. This contrasts with FFO of $1.172 billion, or $3.09 per diluted share, compared with $1.228 billion, or $3.25 per diluted share. The gap reflects third-quarter non-cash after-tax losses of $99.6 million, or $0.27 per diluted share, attributable to unrealized mark-to-market adjustments on Klépierre exchangeable bonds and the revaluation of an equity security held by an unconsolidated Other Platform Investment.
GAAP profitability declined despite higher revenue and NOI. Net income attributable to common stockholders was $499.0 million, or $1.54 per diluted share, compared with $606.2 million, or $1.86 per diluted share. Total operating expenses were $ 1,010,106 (Dollars in thousands), compared with $ 788,658 (Dollars in thousands), including depreciation and amortization of $ 510,768 (Dollars in thousands), compared with $ 338,639 (Dollars in thousands). Interest expense also increased to $ 287,590 (Dollars in thousands) from $ 242,790 (Dollars in thousands).
Capital allocation remained active. Simon repurchased 1,137,182 shares for $236.5 million during the quarter and raised its fourth-quarter common dividend to $2.30. The company also completed an $800 million senior notes offering and approximately $970 million of secured loan transactions. As of September 30, it reported approximately $9.0 billion of liquidity. Our Share of Total Indebtedness was $ 35,352,154 (In thousands), with 94.8 % of total debt characterized as fixed.
Management raised estimated full-year 2026 Real Estate FFO per share to $13.30 to $13.40 from its previous estimate of $13.20 to $13.30, while estimated net income attributable to common stockholders per diluted share is $6.32 to $6.42, below the prior $6.47 to $6.57 range. The revised outlook preserves the emphasis on underlying real estate performance while recognizing the effect of the non-cash items that affected GAAP earnings.
Management, verbatim
We delivered another quarter of excellent financial and operational results.
Eli Simon, Chief Executive Officer, President and Chief Operating Officer
Leasing momentum continued, rents and occupancy increased and shopper traffic growth accelerated for the third consecutive quarter, driving robust retailer sales growth across our portfolio.
Eli Simon, Chief Executive Officer, President and Chief Operating Officer
Today, we are once again increasing our full-year 2026 Real Estate FFO per share guidance and raising our quarterly dividend.
Eli Simon, Chief Executive Officer, President and Chief Operating Officer
Not in the filing
stated, not guessed- GAAP operating cash flow was not provided in the filing text.
- Free cash flow was not provided in the filing text.
- Gross margin was not reported.
- A consolidated segment revenue breakdown was not reported.
- A forward revenue, gross margin, operating-expense, or tax-rate outlook was not provided.
- Prior-quarter comparisons were not reported for the listed key metrics.
- No previous release outlook section was provided for formal actual-versus-prior-guidance comparisons.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.