SPG

This article first appeared on GuruFocus. Release Date: September 08, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue from continuing operations increased by 6.2% to ZAR45.83 billion, with EBITDA up 15.5% and operating profit up 26.6%. Headline earnings per share from continuing operations surged 36% to ZAR3.346, and net cash from operating activities rose 24.3% to ZAR2.44 billion. Strong market share gains in the UK, with new car sales volumes up 22.1% versus national growth of 6.4%, driven by Chinese brands like Omoda, Jaecoo, and Chery. Exceptional turnaround at ADA in Spain, with EBITDA up 162.1% to ZAR183.4 million, supported by growth in home delivery and industrial logistics. The acquisition of DIG Fleet Solutions contributed ZAR103.9 million in operating profit in just four months, boosting the Fleet Solutions division's operating profit by 54.3%. Return on net operating assets improved to 9.2% from 7.3%, nearing the strategic target of 10.4%. Challenging retail trading conditions in South Africa led to reduced margins and volumes at Lieben Logistics, impacting the refrigerated transport and convenience businesses. The average price mix of vehicles sold declined due to a shift toward lower-priced Chinese and Indian brands, pressuring dealership operating margins. Net gearing increased from 20.6% to 27.4%, reflecting higher capital expenditure and the consolidation of DIG, which may raise financial risk. The Group continues to face macroeconomic volatility in Southern Africa and Europe, with a marked drop in automotive parts distribution volumes in the industrial operations. Discontinued operations, including the closure of UK Hyundai and Suzuki dealerships and the sale of AMCO, indicate ongoing portfolio restructuring and potential asset write-downs. Free cash flow after expansionary capital expenditure was only ZAR399 million, limited by significant investment in new warehouses, vehicles, and pallets. Warning! GuruFocus has detected 4 Warning Signs with JSE:SPG. Is JSE:SPG fairly valued? Test your thesis with our free DCF calculator. Q: What drove the significant improvement in the UK dealerships' performance, and how is the shift towards Chinese brands impacting the market?A: Peter Mountford (Group CEO) explained that the UK dealerships delivered a substantially improved performance, with new car sales volumes increasing by 22.1% compared to the national passenger market growth of 6.4%. This was driven by a 228.5% increase in sales from Omoda and Jaecoo dealerships and the introduction of three Chery branded outlets. Chinese brands now represent 24.9% of total new vehicle sales volumes, up from 15.7% in the prior year. Omoda and Jaecoo achieved a combined market share of 4.6% in the UK passenger market in the first half of 2026, compared to 1.5% previously, while Chery grew its market share to 1.8% in June 2026. The UK Vehicle Emissions Trading Scheme is also driving electric vehicle sales growth, with the target increasing from 28% in 2025 to 33% in calendar 2026. Q: Can you provide more details on the DIG Fleet Solutions acquisition and its contribution to the Fleet Solutions division?A: Peter Mountford (Group CEO) stated that the acquisition of a 70% stake in the DIG Group was concluded on March 1, 2026, for an initial consideration of ZAR448 million plus a deferred contingent purchase consideration of up to ZAR160 million. DIG is a well-established plant and equipment hire business operating across 19 mining sites in South Africa. In the four months to June 2026, DIG contributed an operating profit of ZAR103.9 million. The agreement also includes a minority put option to acquire the remaining 30% shareholding after five years. This acquisition was a primary driver of the Fleet Solutions division's revenue increase of 30.1% and operating profit increase of 54.3%. Q: What were the key drivers behind the Group's overall financial performance for the year to June 2026?A: Peter Mountford (Group CEO) highlighted that the Group reported excellent results across all key markets. Revenue from continuing operations increased by 6.2% to ZAR45.83 billion, EBITDA increased by 15.5% to ZAR4.16 billion, and operating profit rose by 26.6% to ZAR2.37 billion. Headline earnings per share from continuing operations increased by 36% to ZAR3.346. The strong performance was supported by market share gains in consumer-focused and industrial supply chain operations, solid performance from fleet solutions and dealerships, and the four months of revenue from the newly acquired DIG business. The Group's return on net operating assets improved to 9.2% from 7.3% in the prior year. Q: How did the Supply Chain division perform, and what were the specific highlights and challenges?A: Peter Mountford (Group CEO) noted that Supply Chain revenue increased by 6.1% while operating profit increased by 20.8%. The Southern African commodity transport businesses performed strongly, with significantly improved trading profits from both coal and copper transport operations. The cross-border transport business delivered a significant turnaround due to improved transport rates and stronger copper trading profitability. The ADA operations in Spain were an exceptional performer, with EBITDA increasing by 162.1% to ZAR183.4 million, driven by growth in home delivery, commercial, and logistics segments. However, the refrigerated transport and convenience businesses faced challenging retail trading conditions, with Lieben Logistics experiencing a significant reduction in retail distribution margins and volumes. Q: What is the status of the Group's discontinued operations and strategic portfolio review?A: Peter Mountford (Group CEO) provided an update on the discontinued operations. The disposal of SG Fleet was finalized in the previous financial year, and the sale of inTime was concluded in July 2025. The UK Hyundai and Suzuki dealerships have been closed, and the UK Kia dealerships remain classified as assets held for sale. The Group sold its 75% shareholding in its passenger bus services business on April 21, 2026, for ZAR15 million. During the year, the Group resolved to dispose of its 78.82% interest in AMCO, and in June 2026, received an offer for its interest, with the share sale agreement currently being finalized. These actions align with the Group's strategy of focusing on core operations and reviewing businesses that are not meeting asset return requirements. Q: How did the South African dealership operations perform, and what is the strategy for emerging brands?A: Peter Mountford (Group CEO) reported that revenue in the Dealerships South Africa division increased by 12.3%, driven by a 21.5% increase in new car sales volumes and a 15.8% increase in used sales. Growth in new car sales volumes exceeded the NAAMSA dealer market growth by 4.3%. The division's new car sales volumes in emerging Chinese and Indian brands grew by 91% over the prior year and now represent 33.8% of total new vehicle sales volumes. Super Group added 11 new dealerships during the year, including representation of Chery, Geely, GWM, Jetour, and other brands, bringing the total to 31 operations representing emerging Chinese and Indian brands. The operating margin decreased marginally to 3.5% from 3.7% due to the higher proportional contribution from new vehicle sales activities. Q: What is the Group's outlook and strategic focus for the financial year to June 2027?A: Peter Mountford (Group CEO) stated that the Group is well positioned to deliver improved earnings in the forthcoming financial year despite challenging trading conditions across Southern Africa and Europe. The consumer supply chain and fleet lease businesses are expected to perform strongly, supported by new customer onboarding and expanded service offerings. The South African dealership operations are expected to sustain their strong performance, driven by the continued expansion of the emerging brands portfolio. In the UK, the benefits of realigning dealership brand representation and the reduced operational cost base will continue to support improved earnings. The Group remains focused on capitalizing on high-growth organic and strategic opportunities while responding effectively to macroeconomic volatility. Q: Can you elaborate on the Group's cash flow generation and capital allocation during the year?A: Colin Brown (Group CFO) explained that net cash generated from operating activities increased by 24.3% to ZAR2.44 billion. Operating cash flow before working capital movements was ZAR4.3 billion, with a net working capital outflow of ZAR96.3 million. The For the complete transcript of the earnings call, please refer to the full earnings call transcript.

A month has gone by since the last earnings report for Simon Property (SPG). Shares have lost about 3.5% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Simon Property due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Simon Property Group, Inc. before we dive into how investors and analysts have reacted as of late. Simon Property Group delivered second-quarter 2026 Real Estate FFO of $3.29 per share, topping the Zacks Consensus Estimate of $3.18 by 3.46% and increasing 7.9% year over year. Total revenues of $1.79 billion beat the consensus mark of $1.71 billion by 4.49% and rose 19.5% from the year-ago quarter. Broad-based leasing demand, higher traffic, retailer sales growth and contributions from acquisitions supported results. U.S. Malls and Premium Outlets occupancy remained 96%, unchanged year over year, while retailer sales per square foot jumped 13.9%. Lease income increased 20.3% year over year to $1.66 billion. Fixed lease income reached $1.35 billion compared with $1.13 billion a year earlier, while variable lease income increased to $310.6 million from $246.7 million. Management fees and other revenues rose 7.7% to $40.8 million. Other income advanced 11.1% to $90.1 million, aided by higher mixed-use and franchise operations income and other ancillary sources. Base minimum rent per square foot for U.S. Malls and Premium Outlets climbed 6.3% year over year to $62.42. Reported retailer sales per square foot increased to $838 for the trailing 12 months ended June 30, 2026, from $736 a year earlier. The Mills portfolio remained highly occupied at 98.8%, down from 99.3% a year ago. Its base minimum rent per square foot increased to $42.28 from $37.65, indicating higher rental rates across the portfolio. Domestic property NOI increased 8.5% year over year to $1.51 billion. Portfolio NOI, which includes domestic and international properties, rose 8.3% to $1.60 billion. Beneficial interest of the combined NOI increased 6.4% to $1.75 billion. International property NOI totaled $96 million compared with $91.3 million in the prior-year quarter, while NOI from other platform investments declined to $31.8 million from $41.7 million. Total operating expenses increased 28.1% year over year to $966.5 million. Depreciation and amortization rose to $459.9 million from $339.1 million, while property operating expenses increased to $171.4 million from $139.8 million. Interest expense climbed 20.8% to $281.2 million. Simon ended the June 2026 quarter with approximately $9.3 billion of liquidity, comprising $1.7 billion of cash on hand, including its share of joint venture cash, and $7.6 billion of available capacity under its revolving credit facilities. During the second quarter, Simon Property completed eight secured loan transactions totaling approximately $1.4 billion at a weighted average interest rate of 5.36%. It also issued €500 million of five-year senior notes carrying a 3.65% coupon and closed a $460 million five-year term loan priced at SOFR plus 0.70%. Simon increased its full-year 2026 Real Estate FFO per share guidance to $13.20-$13.30 from $13.10-$13.25. The midpoint of the updated range is 8 cents above the midpoint of the previous outlook. In the past month, investors have witnessed a upward trend in fresh estimates. Currently, Simon Property has a poor Growth Score of F, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Simon Property has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Simon Property is part of the Zacks REIT and Equity Trust - Retail industry. Over the past month, Regency Centers (REG), a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended June 2026 more than a month ago. Regency Centers reported revenues of $413.51 million in the last reported quarter, representing a year-over-year change of +8.6%. EPS of $0.61 for the same period compares with $1.16 a year ago. For the current quarter, Regency Centers is expected to post earnings of $1.22 per share, indicating a change of +6.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days. Regency Centers has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Simon Property Group, Inc. (SPG) : Free Stock Analysis Report Regency Centers Corporation (REG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: DKK1.95 billion in the first half of 2026, a growth of 32.9% (19.7% organic, 13.2% from acquisitions). Q2 Revenue: DKK984 million, a growth of 44.6% (29.4% organic, 15.2% from acquisitions). EBITDA: DKK397 million in the first half of 2026, up 36.2%, with a margin of 20.3%. EBIT: DKK280 million in the first half of 2026, up 45.4%, with a margin of 12.7%. Profit Before Tax (EBT): DKK248 million in the first half of 2026, up 50.3%. Cash Flow from Operating Activities: DKK291 million in the first half of 2026, an improvement of DKK62 million year-over-year. Earnings Per Share (EPS): DKK16.4, up 55.1%. Net Interest-Bearing Debt: DKK1.341 billion at end of June, reduced by DKK119 million during the first half; net debt-to-EBITDA ratio at 1.9 times. Equity: DKK1.9 billion, with an equity ratio of 46%. Own Products Sales: DKK472 million in the first half of 2026, up 21.6%. Sub-supplier Tasks Sales: DKK1.478 billion, up 37%. Healthcare Product Group Revenue: DKK688 million, up 18%. Cleantech Product Group Revenue: Up 40%. Foodtech Product Group Revenue: Up 61%. Other Product Group Revenue: Up 37%. Full-Year 2026 Outlook: Revenue growth of 24% to 30% (DKK3.6 billion to DKK3.8 billion), with an EBITDA margin of 19% to 21% and an EBIT margin of 11% to 13%. Warning! GuruFocus has detected 8 Warning Signs with OCSE:SPG. Is OCSE:SPG fairly valued? Test your thesis with our free DCF calculator. Release Date: August 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record strong Q2 2026 with revenue growth of 44.6% and organic growth of 29.4%. First half 2026 revenue growth of 32.9%, with organic growth of 19.7% and EBITDA margin of 20.3%. Successful integration of Ide-Pro, which has interacted quickly with virtually all group companies. Acquisition of OGM Moulding expands SP Group AS (OCSE:SPG) into the UK market, adding new capabilities like box build and access to a strong technology region. Upgraded full-year 2026 revenue growth outlook to 24%-30% due to strong performance and the OGM acquisition. Healthcare segment growth was flat in Q1 2026, with a significant customer phasing out a product, impacting MedicoPack sales. EBITDA margin in H1 2026 (20.3%) is lower than the Q4 2025 level (21.5%), partly due to a mix effect from higher sub-supplier task share. OGM's EBITDA is expected to decline from GBP4.4 million to GBP3.5-3.7 million in 2027 due to projects moving away, indicating a short-term dip in performance. Geopolitical tensions and the Middle East conflict still pose risks, with potential for stockpiling effects and uncertainty in the second half. Net debt-to-EBITDA ratio increased slightly to over 0.1 times due to the OGM acquisition financing, adding to leverage. Q: If we bridge from the H1 revenue of DKK1.95 billion to the guided full-year range, the second half looks materially slower than the first, even with OGM added. Is this guidance built on an expectation of lower activity, or is there room in the range?A: Allan Jeppesen (CFO) explained that the company has chosen a cautious approach due to the geopolitical tensions seen in the first half of 2026. He stated that management strongly believes the 24% to 30% growth range is achievable. Q: In FY 2026, you are guiding for DKK3.65 billion to DKK3.85 billion, while your 2030 target stands at DKK4.5 billion. It looks like that target will be hit in FY '27 or '28. Will that figure be updated?A: Lars Bering (CEO) confirmed that the original 2030 target was based on 6% to 9% annual organic growth, with the potential to grow faster via larger acquisitions like Ide-Pro and OGM. He stated that since the company is on track to reach the goal faster than expected, they will set new high-level goals for the future once they get there. Q: The EBITDA margin has come down a little in H1 2026 to around 20.3% versus the 21.5% level in Q4 2025. Is it mix effects and/or has the Ide-Pro acquisition been dilutive?A: Lars Bering (CEO) attributed the decline to a mix effect. Sub-supplier tasks now account for a larger share of revenue, and these have lower margins than the company's own products. He noted this is natural and that the company will work hard to increase the share of its own products while also improving overall business efficiency. Q: How much operational leverage is there in the coming years? Can you strengthen your margin even more than the 22% in the future, and which levers are needed?A: Lars Bering (CEO) reiterated that margin levels are highly affected by product mix. Increasing the share of own products would lift margins. He emphasized that the sub-supplier business is very competitive, requiring constant focus on efficiency in processes and purchasing to maintain competitiveness. Q: What is the earnout structure for the OGM Moulding acquisition tied to? Is it EBITDA, EBT, or revenue in '27 and '28? How ambitious are the targets?A: Allan Jeppesen (CFO) stated that the earnout is tied to EBITDA (operating profit). He described the targets as ambitious, requiring OGM to achieve a level of operating income that they have done in the past and actually a bit more. Q: Could you provide more insight into the UK market? Can we take this as a sign that you expect your next acquisitions to be more likely in the UK, and what percentage of OGM's revenue comes from outside the UK?A: Lars Bering (CEO) noted that OGM has limited sales outside the UK, with existing sales being for UK customers with factories abroad. He called the UK a very interesting market with future possibilities, but clarified that it is not automatically the next acquisition location. The company has a good pipeline of targets and will take time to work on that. Q: Healthcare grew only 0.6% in Q1 but about 18% in the first half, implying around 40% growth in Q2 alone. What turned around so markedly, and is that sustainable into H2?A: Lars Bering (CEO) explained that Q1 of last year was exceptionally strong, while Q2 was very poor, especially in healthcare, due to postponed projects and initial tariff/trade war concerns. He clarified that on an overall basis, the Healthcare segment has grown in line with the rest of the business, noting the 19.7% organic growth in H1 versus 18% growth in healthcare. Q: How do geopolitics and the conflict in the Middle East affect you today compared with back in April?A: Lars Bering (CEO) stated that there is now greater certainty regarding material supply and that prices have stabilized. However, he cautioned that the situation could escalate, which would create a new situation for the company. Q: Was the 6% to 9% CAGR for the FY 2030 goal purely organic?A: Lars Bering (CEO) clarified that the target was based on organic growth with minor acquisitions. He characterized both OGM and Ide-Pro as larger acquisitions compared to what SP Group has done in the past, which allows for faster growth than the original target. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 5 p.m. ET Chief Executive Officer, President and Chief Operating Officer - Eli Simon Chief Financial Officer - Brian McDade Senior Vice President, Investor Relations - Thomas Ward Operator: Greetings. Welcome to Simon Property Group Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to Tom Ward, Senior Vice President, Investor Relations. Thank you. You may begin. Thomas Ward: Thank you, Sherry, and thank you for joining us this evening. Presenting on today's call are Eli Simon, Chief Executive Officer, President and Chief Operating Officer; and Brian McDade, Chief Financial Officer. A quick reminder that statements made during this call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995, and actual results may differ materially due to a variety of risks, uncertainties and other factors. We refer you to today's press release and our SEC filings for a detailed discussion of the risk factors relating to those forward-looking statements. Please note that this call includes information that may be accurate only as of today's date. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included within the press release and the supplemental information in today's Form 8-K filing. Both the press release and the supplemental information are available on our IR website at investors.simon.com. Our conference call this evening will be limited to 1 hour. For those who would like to participate in the question and answer session, we ask that you please respect our request to limit yourself to one question. I am pleased to introduce Eli Simon. Eli Simon: Good evening. We delivered excellent financial and operational results in the second quarter. Domestic property NOI and real estate FFO growth accelerated in the quarter to 8.5% and 7.9%, respectively. This was driven by continued leasing demand, disciplined execution across all platforms and contributions from recent acquisitions. Shopper traffic accelerated in the quarter and retailer sales volume again grew solidly year-over-year, further evidence that our portfolio is well positioned and our properties are the places where shoppers and tenants want to be. And with our recently declared dividend, we will have paid out over $50 billion to shareholders since becoming a public company. Tenant demand continues to be widespread with no slowdown, drawing from a broad mix of established and emerging retailers across categories, platforms and geographies. During the second quarter, we signed more than 1,200 leases totaling over 4.8 million square feet. The number of new deals signed in the quarter increased more than 20% compared to last year, and new deals represented approximately 28% of total lease square feet. Year-to-date through the second quarter, initial base minimum rent per square foot on new deals is up 17% year-over-year, while tenant allowance per square foot on new deals is down 12% year-over-year. We have completed more than 87% of our 2026 expirations and are ahead of where we were at this time last year as we continue to negotiate 2027 and 2028 expirations with many tenants. The pipeline of prospective deals continues to build, remaining well ahead of last year's pace, reflecting continued broad-based tenant demand. Moving on to retailer sales. Malls and Premium Outlets were $838 per square foot, up 13.9%. Importantly, total sales volume increased 6.6% over the trailing 12 months and 7.6% in the quarter, with comparable sales growth of 5.7% for the second quarter. We continue to host unique activations that highlight the incredible value our portfolio offers. Our fifth annual National Outlet Shopping Day produced another year of shopper traffic and retailer sales growth, along with a more than 25% increase in retailer participation compared to last year with Simon+ members enjoying exclusive rewards tied to the event. We also built on the momentum around the World Cup, running a coordinated activation strategy across our portfolio that featured fan experiences, watch parties, retailer collaborations and community programming. The shopper and retailer response to these types of events underscores Simon's offering, the ability to turn major moments into large-scale real-world experiences that bring our consumers, brands and communities together. Turning now to development and redevelopment activity. At the end of the quarter, we had development projects underway across all platforms with our share of the net cost totaling $1.07 billion at a blended yield of 9%. Approximately 50% of the net cost is for mixed-use projects. Looking ahead, we expect projects representing more than $600 million of additional net cost to start construction in the second half of this year. Our development pipeline remains robust with over $4 billion of projects, which we believe will generate attractive returns, enhance our properties and support long-term growth in cash flow, FFO and dividends per share. This is consistent with the results we have achieved on similar recently completed projects such as Southdale Center in Edina, Minnesota, Brea Mall in Orange County and Briarwood Mall in Ann Arbor, Michigan. Over the last 4 years, we have also committed more than $400 million to center enhancements that are either completed, underway or recently approved, including common area upgrades, landscaping, lighting and other amenities, creating a more elevated shopping experience. These enhancements are noticed and appreciated by our customers and particularly by our retailers who value a landlord committed to the long-term success of their stores and the communities we serve. We remain focused on these enhancements alongside our broader development activity, and our balance sheet allows us to continue reinvesting in our portfolio for years to come. With that, I will turn it over to Brian, who will review our financial results from the second quarter in more detail and provide an update on our outlook for the remainder of the year. Brian McDade: Thank you, Eli. Real estate FFO was $1.25 billion or $3.29 per share in the second quarter compared to $1.15 billion or $3.05 per share in the prior year period, an increase of 7.9%. Domestic and international operations both performed well and contributed $0.29 of growth, driven by increased lease income, disciplined cost management and contribution from acquisitions. As anticipated, higher interest expense and lower interest income combined were a $0.06 drag year-over-year. Reported FFO was $3.12 per share in the second quarter compared to $3.15 per share in the prior year period, which included a $0.21 per share noncash after-tax gain primarily due to Catalyst Brands' deconsolidation of Forever 21. Domestic property NOI increased 8.5% year-over-year for the quarter and 7.6% for the first half of the year. Approximately 120 basis points of growth for both the second quarter and first half of the year were attributable to our acquisition of the remaining 12% interest in TRG. Portfolio NOI, which includes our international properties at constant currency, grew at 8.3% for the quarter and 7.5% for the first half of the year. Malls and Premium Outlets occupancy at the end of the second quarter was 96%, flat compared to the first quarter and year-over-year, a result that reflects the depth of retail demand as we absorbed approximately 1 million square feet of retailer bankruptcy-related space returned during the quarter and successfully relet. The Mills occupancy was 98.8%. Average base minimum rent for the Malls and Premium Outlets increased 6.3% year-over-year, while ADR for the mills increased 12.3%. Occupancy cost at the end of the quarter was 12.5%. Shifting to return of capital. Today, we announced a dividend of $2.25 per share for the third quarter, an increase of $0.10 or 4.7% year-over-year. The dividend is payable on September 30 to shareholders as of the record date. During the second quarter, we repurchased approximately 793,000 shares of common stock and approximately 238,000 limited partnership units for a $211 million investment at an average purchase price of $205.10 per share. On to the balance sheet. During the quarter, we completed 8 secured loan transactions totaling $1.4 billion at a weighted average interest rate of 5.36%. We issued EUR 500 million of senior notes at a 3.65% rate for 5 years, and we closed on a $460 million 5-year term loan priced at SOFR plus 70 basis points, the proceeds of which were used to repay $460 million drawn under our revolving credit facility. We ended the quarter with approximately $9.3 billion in liquidity, and our balance sheet remains incredibly robust with net debt-to-EBITDA below 5.0x and fixed charge coverage of 4.7x. This supports our strategy and our continued execution. Finally, on to 2026 guidance. Given our results for the first half of the year and our current view for the remainder of the year, we are increasing our full year 2026 real estate FFO guidance to a range of $13.20 to $13.30 per share. That compares to $12.73 last year and is an $0.08 increase at the midpoint compared to the range previously provided. Thank you, and we are now available for your questions. Operator: [Operator Instructions] Our first question is from Caitlin Burrows with Goldman Sachs. Caitlin Burrows: I guess I'm wondering if you can talk about TIs and cash flow growth. You did reference some of the pieces in the prepared remarks. So if you look over a long time period, like the last 10 years, NOI and FFO growth have outpaced FAD growth. Year-to-date, it looks like actually FAD growth has outpaced NOI and FFO growth. So maybe that is a change in the trend or maybe the numbers move around. But wondering, can you discuss the outlook for TIs and what they're a function of? If the demand and leasing environment is so strong, do you expect to pull back on TIs? And is reducing TIs a goal of yours? Eli Simon: Sure. So thanks for the question, Caitlin. So I think -- when I think about the -- let's just talk about TIs first. That's a function of demand for the tenants and -- demand from the tenants and demand for the space and the supply of available space. The reality is we're having a ton of conversations with retailers. Our pipeline today is up 26%, I think it is, from this time last year, which is over 100 more deals. And when we have those conversations, rent is a component of it and TI is a component of it. And there are certain times where it might be a tenant that we want to start a new relationship with, but we're concerned potentially about the credit or about their long-term viability. And so maybe we'll say, yes, maybe it doesn't make sense to pay as much of a TI as what we might pay for someone else. We're more certain about what the performance could be. So I think it's really a function of mix over the long run. But the reality is supply and demand shows itself in 2 ways. It shows itself in rent growth and it shows itself in TIs. Stepping back, if you look at funds available for distribution more broadly, I think for the year, we're up 9% or over 9% year-to-date. It's a focus of ours, right? Our focus is to grow cash flow growth and part of the cash flow growth is from the FFO and part of it is from the capital we spend. But what I do want to highlight or reiterate, which I said on the call -- in the prepared remarks, is we are reinvesting back into our centers in a big way, and that is noticeable from the consumers and really from the retailers. And I've been to, I don't know, I think I've been to 12 states in the last 3 weeks and seen a bunch of our properties where we have done these transformations. And what I've seen is new leases being signed there and new retailers coming to these centers because they see a landlord that has reinvested into that space. And when you ask the general manager, what's the customer perception been, they say, well, we've had people come up and say I didn't realize this center was still here, this center was still thriving. So our job is to continue to reinvest back into our centers and to make them better from the customer's perspective and from our retailers' perspective. But our job overall is to grow cash flow growth, grow dividends per share and make our centers better and sort of we throw it all into the calculus. And I think the results have been obviously very impressive so far, and we're looking forward to the future. Operator: Our next question is from Michael Griffin with Evercore ISI. Michael Griffin: Eli, I appreciate your commentary around the leasing outlook. Just wondering, as you kind of look ahead to really '27 and beyond, you've got rents on in-line shops to, call it, $60 to $65. I realize you don't quote a mark-to-market on the portfolio, but can you give us a sense as those leases are coming due, are you signing leases in the 70s, mid-70s? Just curious about the trajectory and opportunity there in rent growth given all the demand that you've really highlighted. Eli Simon: Sure. So if you look at year-to-date, I think we've signed new leases at $78 more or less. And -- but what you have to focus on those leases coming due is a large number of them will renew. They're great tenants. We have great relationships with them. They're important for the center. And our renewals historically speaking, and that's holding true now is sort of in the mid-single digits. And so we'll renew some and we'll replace some if we think that there are better retailers that can perform better and add more to the center. So it's not as simple as saying the $60, $65 goes to $78. But clearly, if you look at the trajectory of where new leases have been signed, obviously, it's a positive story. The supply and demand story is positive, but it's not as simple as just saying, take the $60, $65 to $78. But I think really the focus is what's the right retailer for each space. And there's no market rent really in our industry or how we think about it is what's the market rent for that tenant based on how they're going to perform and what they're going to do with the rest of the center. So we think it's a positive story. I don't think it's quite the $65 to $78 in a year, but we look forward to continuing to upgrade -- continue to upgrade the merchandise mix in the pipeline, I think it's 483 deals and a similar number of them are new deals or new tenants as we've done year-to-date, which is 28%. So we feel very good about the pipeline, and it's our job to continue to execute and continue to grow it over time. Operator: Our next question is from Samir Khanal with Bank of America. Samir Khanal: Eli, given that occupancy is at 96% today, I guess, where do you see the greatest opportunity to drive NOI and earnings growth, right? Clearly, there's a lot of momentum here. So help us think through the -- about the key drivers of growth, let's call it, over the next 12 to 18 months. Eli Simon: Sure. So first off, on occupancy, I think it's important to realize that we are at 96% occupied on the malls and mills -- I'm sorry, in malls and outlet portfolio. We got 1 million square feet space back in mid-May and are at the same occupancy level as we were at the end of the first quarter. I think that's pretty impressive. I think it speaks to the strength of the team and the strength of our portfolio. But when I think about the levers of growth, so to speak, occupancy does have a little bit more to go from here. I don't think we'd ever be at 100%. We wouldn't want to be. We want the ability to move around tenants, but there obviously is a little bit more from here. I think, honestly, above where we finished last year is the team's goal, and I think we'll achieve that. The other piece, obviously, is retenanting, taking out lower performers who obviously pay lower rent and replacing them with new, better tenants that pay more rent, given their increased productivity is obviously a focus. And the last piece is our development pipeline. We have $1 billion in the ground today. We have hopefully $600 million plus that will be approved and start by the end of the year. We're generating 9% return on those investments, which is obviously a very healthy number. And again, when I -- when we quote those numbers, that is only on the capital we're spending on those developments. But if you look at what we've done at Southdale, look at what we've done at Brea, look at Briarwood, there's significant benefit to the rest of the center when we do those developments that are not reflected in those returns. And so that's another avenue of growth for us. But it's really continuing to do what we've been doing, which I think we've obviously done a good job so far, but we have more to go. We're going to continue to reinvest into our centers and continue to upgrade the merchandise mix. But there's a lot of factors that go into our growth, but we feel pretty good about where we sit today. Operator: Our next question is from Michael Goldsmith with UBS. Michael Goldsmith: I think Brian in his prepared remarks talked about 1 million square feet of bankruptcy-related space coming back during the quarter. Can you outline who has been giving you back space? And then also, can you just talk about -- we've talked a little bit about the occupancy and you've been able to keep that flat despite giving all that space back. You also talked about how leasing economics are being strong, but can you talk a little bit about the space that you got back, at what rents were they in? Are you seeing kind of similar to the overall new leasing on those boxes? Just trying to understand the economic uplift from replacing the space. Eli Simon: Sure. So the 1 million square feet, basically all of that were the Saks Off Fifth's, right? Obviously, a pretty public bankruptcy process. But again, we've leased, right? So we had effectively no skipping, no excuses for lower occupancy, right? We got back where we are. And again, as of the end of July, we're at 96.3%. So we are above where we were. But if you look at Saks, not dissimilar to what we talked about earlier this year. If you look at the boxes in the outlets, they were paying $18 million in rent. The deals we have signed today are already -- which about half the space are already well in excess of that, and the rest are under discussions and near final deals. But we'll basically take the $18 million and turn it into $44 million. The only thing that I'd say is not reflected in '26 or I guess will be reflected in '26 is that we got those boxes back, frankly, later than we thought we would. We didn't get them back until, I want to say, it was May 15 or May 16. And so by the time -- again, we hustled, we got leases signed, getting leases signed now, but that's really going to be a '27 story when those rents start hitting. But again, it's a good news story for us, but that's really the vast, vast majority of that 1 million square feet of the Saks Off Fifth, which again, not surprising that we got them back, and I think it's overall a good outcome. And the replacements have been, I don't want to use names because I don't know what's been publicly said or not, but great, great retailers, blue-chip retailers. A number of expansions, frankly, that might have been elsewhere in the center, wanted more space, some carve-ups. But overall, very, very good demand and a lot of them actually had options over who to replace them with, but turned out to be a good news story for us. Operator: Our next question is from Greg McGinniss with Scotiabank. Greg McGinniss: Similarly, along those lines of tenants that you're putting into the centers, you mentioned the substantial retenanting. Could you please provide some details on which tenants or categories you're adding to centers that seem to be resonating with consumers today versus those where you're looking to potentially limit exposure and where you see the tenant watch list where that sits today? Eli Simon: Sure. So we are adding, frankly, across a variety of categories across all geographies, across all platforms. I would say what is most exciting to me is our new and emerging brands, which are across a variety of sectors, includes technology companies, athleisure, home, jewelry, very big in the Gen Z, the teen consumer. We are adding a ton of new brands there that are, in many cases, unique to the market, unique to our center and really differentiates one of our properties where we add these types of connectivity to other properties. And so these brands are coming from online. They're coming from Europe. They're coming from Asia in the beauty space. A number of deals in the beauty space from Asian retailers come in the collectible space. Athleisure space obviously continues to grow with new entrants. And so that's very exciting. And when you walk one of our centers, you see something new, you see something that's differentiated. And I think it's resonating with customers. And when we add these types of retailers, we see increased traffic and not just for the retailers we add, but for the retailers for the rest of the center. And what that's led to, frankly, is if you go and look at some of the legacy players in the spaces where we're adding the new emerging brands, they're reinvesting into their stores. Their stores look so much better. Their merchandise looks better, and it's really a great symbiotic relationship, which we're very proud of. The other area of focus, I would say, would be in the restaurant space. We continue to upgrade the restaurants and continue to add restaurants. If you look, we have a number of high-profile developments and redevelopments that have started and will start over the next, call it, year or so, we're going to add probably $400 million to $500 million of incremental restaurant sales from some of the biggest names out there on a regional, on a national basis. And so again, that's something that we can continue to do to create a fresh environment, an exciting environment and an environment that customers want to go to. So that's really the focus, but the demand is from a variety of categories, variety of retailers. On the watch list, it's in very good shape. Nothing close to material, sort of normal course and the extent stuff happens, we handle an ordinary course of business. Brian McDade: It's actually an opportunity for us, Greg. It's Brian. The watch list is at its low point. But as we've said now, the recapture space does provide us opportunity to bring in better merchants. Operator: Our next question is from Alexander Goldfarb with Piper Sandler. Alexander Goldfarb: Eli, I just wanted to go back on your Simon Brand Ventures. I think before you had said that I think it delivered like $200 million and maybe there's a goal of like $800 million, but also you have 2 billion people who go through your global portfolio. Just want to get a better sense of as you look to monetize this -- the visitor count, is this something that you think is like near term, like in the next, call it, 2 years that we'll see a material shift in this revenue increase? Or this is something more of a longer-term initiative? I'm just trying to get a handle on. I mean, 2 billion is certainly a lot of people. Eli Simon: Thanks, Alex. So I don't know if you have access to my e-mails, I guess. I have a draft press release that I guess I can say now that will be launched in the next couple of weeks to launch Simon Media Network to really, in a more broad way, take advantage of the first-party customer insights that we are getting. As you said, we have billions of visits a year, probably carrying over $100 billion in our domestic portfolio. And so there will be an announcement in next -- in the coming weeks. But yes, we think there's a real opportunity here to take sort of our whole ecosystem of -- we have obviously our digital footprint with Simon+, with ShopSimon, with Simon Search, our in-house screen network. We have over 4,000 screens, the largest footprint of screens, I think, in the world that we continue to invest in. And then now to take the data we're going to get into Simon Media Network and create something that's really, really interesting, both for our endemic brands, the retailers in our centers, but also for non-endemic brands who want access to our consumer who is -- has a high intent to shop and to shop and shop a lot. And so it's something we are focused on. I don't know about the 200 to 800. I hope it's that. I hope it's more than that, frankly, but it's a business that's growing at double-digit, mid-teens percent year-over-year. We're investing into it. We're adding screens. We're adding touch points at our centers. One is because we can make a really good return and have a 1- to 2-year payback period. But two is I think it looks good, frankly. I think when done right, I think it adds to our centers. We have our digital directories, allowed us to search for real-time inventory through Simon Search at our centers, which gets great usage. And so it's something that we are focused on. I'm focused on. We think there's a really big opportunity here clearly, malls, retail centers at large are having a cultural moment. People realize that they're not going away. Young people want to hang out here. And there's an opportunity to, I think, really take advantage of that because we can provide to people who are looking to advertise something that really nobody else can. And so we're focused on it. Again, I don't know when we think about this over the long term, but we think there's tremendous opportunity to really grow this business. And obviously, it's a great business today, but we really do think that there's an opportunity to make this business much bigger over time. Operator: Our next question is from Juan Sanabria with BMO Capital Markets. Juan Sanabria: Hoping you could talk a little bit about your retention strategy. Are you looking to maybe pull that back given the strength of demand and the ability to drive leasing spreads on new deals, particularly for in-line tenants? And if you could talk about kind of the spread between leased versus occupancy and how that shifted with the 1 million in bankruptcies noted and the lease-up of some of the space subsequently. Eli Simon: Sure. So on the retention side, it's a space-by-space decision that has so many different factors that go into it. It's a relationship with the tenant. It's do we -- what's the replacement not just rent, but are they adding to the center. It's a complicated story, but it's something we focus on. The team is obviously very focused on downtime, right? We still are running. Yes, the long-term growth, we also obviously have to focus on cash flow in the intermediate term as well. So it's -- I wouldn't say it's materially changing. But to the extent that we think there's an opportunity to replace a tenant with someone who is going to perform better and add more to the center, add more traffic and then obviously, the rent would be higher as well. We'll look to do it. But it's not like we're going and making a blanket assumption or a blanket call on that. It's really space by space, tenant by tenant, center by center is how we think about that. On the SNO... Brian McDade: Juan, we're still trending around 310 basis points of signed but not open. And really, that got backfilled by the 1 million square feet of leases, right? The open leases were backfilled with some of the work we've been doing since we captured the Saks outlet business. Operator: Our next question is from Floris Van Dijkum with Ladenburg Thalmann. Floris Gerbrand Van Dijkum: Maybe obviously, very strong NOI growth, even excluding the TRG, 7% plus and sales growth through the roof with 13% plus. Maybe talk a little bit about the breadth of that sales growth and talk -- I mean, is this just your top 50 assets carrying the portfolio? Or how is the rest of the portfolio doing? Or what's the bifurcation between your top 50 or 100 assets versus the rest of the portfolio? Eli Simon: Sure, Floris. So it's definitely broader than the top 50, right? It's a pretty broad story. Frankly, the sales trends are pretty similar to what we talked about last quarter that luxury remains very strong on the full price side for sure. On the outlet side, too, but most of the -- or I would say most, but some of the strength of the luxury or tenants that just don't have outlets. Obviously, the jewelry side, the watch side, that remains very, very strong, continues to grow. No real sign of slowdown there. But if you look at the juniors brands, which is targeting sort of the Gen Z customer, we've had 16 straight months of positive comps there, which is pretty staggering, obviously, given all the macro noise out there. And if you think about a customer group that could be hit, it would be that group, and that's continued to grow both new retailers or new entrants in that space, but obviously, the legacy retailers as well. And so the other trends are still holding. Restaurants, again, are a little bit softer than the rest of the portfolio. I think maybe that's economic based, but I think there's also other factors, right? Alcohol sales are down. That's obviously something we can't control. But the story remains positive. Florida remains very, very strong from Jacksonville and St. Johns, obviously, the greater Miami area and Boca over to Naples, Orlando's remained very strong, even the Panhandle continues to grow. That's been a good sign. The border is growing now, but a little bit less than the rest of the portfolio, which impacts the outlets more, right, just given that we have more outlets on the borders than full price. A couple of better outlets, again, are growing a little bit lower than the overall primarily due to the international travel, which, yes, it came here from the World Cup. But if you look at our outlet portfolio, Vegas is a key component of that. Orlando is a key component of that, which obviously didn't have -- both didn't have World Cup matches. But Orlando also coming off of 12 months of 10% to 15% comp growth. So that naturally slowed down a little. But the reality is it's a broad-based story that, yes, the luxury is very strong, no doubt. But this is not 10, 15 centers carrying. This is malls, this is outlets, this is mills. They're all positive comping. And traffic is up across all of them, too. So that's a good news story, is obviously, back-to-school has hit, I don't know, probably 2/3 of the country right now and then the remaining part as we speak. And so that's a good news. And then we look to the holiday season from there. Operator: Our next question is from Rich Hightower with Barclays. Richard Hightower: I was curious if you could give us an update on TRG. And I think last quarter, you sort of talked about the level of excitement there and some of the upside. And maybe just give us an update on where we stand there? And when do you think that comp really starts to kind of normalize within the contribution to the whole, I guess? Eli Simon: Sure. So we were as excited, more excited, continue to be excited, all of the above on TRG. So the EBITDA margin, we've increased the EBITDA margin on those assets that we manage. I remember, there's a few of the assets that we don't manage as part of the portfolio. But the assets that we manage, we've increased the margin by 300% this year. And I would say there is probably another couple of hundred basis points -- sorry, 300 basis points. There's another couple of hundred basis points to go. And that's everything from our purchasing contracts, janitorial, cleaning, it's our parking, it's marketing and sort of you name it, we're focused on it every dollar. We're incredibly focused on it. From a comp perspective, the 120 basis points Brian talked about, that's just surely we added 12% additional ownership, right? So that it goes away in the next 2 quarters. And then that doesn't -- that obviously goes away, right? Because then we'll have owned the remaining interest for a year. Obviously, you did the deal at the end of October, so that narrows as the year goes on. But we think there's a lot of upside over time. And again, we did not make that deal for the next year, for the next quarter. We made that deal for the long term to own really, really, really good assets and then to do what we do, which is upgrade the merchandise mix, reinvest into them. We have some really exciting stuff going on at Green Hills that hopefully we can announce sooner than later, putting significant amount of money into that center, both on renovation, adding great, great tenants, really changing that center sort of like what we did with Southdale in Edina, but in one of the best, if not the best market in the country. International Plaza, putting significant renovation to start soon. Cherry Creek, we just finalized our renovation plans there to continue to make the best asset in the market better. So it's a long-term story for us. The additional contribution from the 12% obviously goes away soon, but we look for those properties to have significant runway for growth into the future, we're very happy, and we're very excited about the opportunity with those assets. Operator: Our next question is from Mike Mueller with JPMorgan. Michael Mueller: You have about $4.5 billion of unsecured debt coming due in 2H in '27, I think about $1.5 billion of cash. Can you talk about how you're thinking about those maturities in the cash today? Brian McDade: Mike, it's Brian. We're as focused as always on our balance sheet and preserving our liquidity. We're active across a variety of markets. We've done 2 deals in Europe in the past quarter, certainly looking around the globe for interest opportunities. We've not yet accessed yen funding, but that's certainly we're considering. There's a variety of other capital markets executions that are out there. So we have flexibility. Certainly credit spreads are incredibly tight, obviously, pricing off a higher base rate. But ultimately, there is plenty of capital in the world today to refinance our debt. But certainly, we're still going to be up against a raising interest rate environment or a higher interest rate environment. At the beginning of the year, we guided towards $0.25 to $0.30 of negativity of interest expense on this year. We're about $0.10 into it. So we've got about $0.20 to go for the balance of the year. And that's under the current interest rate kind of market environment. And then as we head into next year, to your point. And so we certainly are being proactive about our interest expense and managing it appropriately. Operator: Our next question is from Craig Mailman with Citi. Craig Mailman: Eli, it's always helpful going through the development pipeline and kind of what you guys -- the opportunity you have there with the $4 billion. I guess. But as you look at the size of your company, right, $4 billion is 2% to 4% of your total market cap. I'm just -- it's all very helpful and it's all value accretive. But is there a way to, I guess, create a step function in earnings growth from here? I know Brian was just talking about the liquidity you have and you guys are searching the globe. I mean, is there any type of opportunity above and beyond the -- continuing to fix the portfolio, drive earnings from there to kind of grow the platform further and drive maybe that incremental growth above and beyond what malls and retail generally can deliver on a year in and year out basis? Eli Simon: Sure. So there's definitely opportunity. It's something we're always focused on. The great thing about the balance sheet that Brian mentioned is that we can do and will do all of the above to do development and continue to reinvest into our properties. We'll continue to evaluate buying back stock. We still love to own more of what we own, I guess, is the best way to say it. And we know the embedded growth profile given that pipeline that you talked about. But we're also not going to do something just to do it. I think I said this last quarter and it remains true, is we'll buy stuff and look at acquisitions as accretive that we think we can operate better on our platform, but it has to be at the right price. And so we're not going to do something just to add scale. I don't think it's the right thing to do. But the reality is we have $9.3 billion of liquidity. We're in a business or in a balance sheet that's naturally deleveraging based upon our free cash flow generation. And so we'll continue to evaluate. And if there are opportunities, the great thing is we know we can execute. We have the team to execute it. You look at what we did with Brickell last year, we are -- our year 1 yield there is over 100 basis points higher than our underwriting. And that's because we bought really, really, really good real estate at a good price and also because we're operating it, we're leasing it very well and -- but we're laser-focused on it. So we'll continue to do transactions like that to the extent that they are out there, but we're not going to chase stuff. And if others want to chase stuff, that's fine. But we love our portfolio. We love the assets we own. We'll continue to reinvest in them and continue to make those assets better. And if there are opportunities or when there are opportunities, we're ready to go and we can move quick and then add value that way. But we look at it, we've grown NOI 4-plus percent for the last 4, 5 years now, I guess. We have $1 billion in the ground in development. We got $4 billion behind it and much, much more behind that, that we're actively working on sort of the shadow part 2, I guess. So we're focused. We look to continue to grow cash flow, but we're going to do it smartly, and we're going to do it by adding great assets over time. And if nothing is out there that we can transact on, that's fine. We'll do what we do and grow the cash flow of the existing assets. Operator: Our next question is from Vince Tibone with Green Street. Vince Tibone: Comparable tenant sales are up about 6% year-to-date, which is much stronger than the last few years. I just -- how should we think about potential upside to 2026 NOI and FFO growth from overage rents if these strong sales trends continue for the rest of the year? If you could also touch on just kind of what's baked into guidance right now in terms of sales growth for the portfolio, that would be helpful. Eli Simon: Sure. So I would say we've seen no signs of a slowdown at all, frankly. In fact, traffic which we have, traffic accelerated in July. And I don't think anybody asked about traffic, but traffic was up 2%, I think, in the quarter and 3.6% in July, a good number. So I felt like we should say it. But -- so we have not seen any change in sales. I would say that sales are the one thing that we cannot control. Obviously, there's a lot of macro factors, geopolitical, political, political, right, with an election in a couple of months that are out of our control. And so I would say when we think about the guidance, I think it's fair to say that if the sales trends continue, we'll be above the range we guided. But the reality is it's very hard to know how sales are going to perform. Clearly, overage and sales-based rent is back-end weighted, obviously, as you go towards the holiday -- to the holiday season. And so the guidance effectively assumes a slowdown. If we -- if it stays like this, then we obviously will be above that range. But it's -- we don't really feel comfortable guiding at the same growth just because it's something we can't control. We can control leasing. We can control how we manage expenses, but we can't control sales. And so although there's nothing that we've seen that would suggest the slowdown is imminent, we thought it was prudent to guide with some sort of sales moderation. But again, very strong numbers. If you look at the -- for the 6 months, it's 6.3% comp growth. That's obviously very good. And there are tougher comps in the back half of the year. The malls really started there more positive upward trajectory this time last year. So there's a bit tougher comps too that we will see, but we are hopeful that the consumer is shown to be resilient. Obviously, stock market being at or near record highs is not insignificant, but that's sort of, I guess, the best way to summarize sales. I don't know, Brian, anything? Brian McDade: No, I think you covered it well, Eli. Ultimately, we would expect if the current conditions continue, that will be a further contribution beyond our -- what's baked into our guidance for the year. Operator: Our next question is from Tayo Okusanya with Deutsche Bank. Omotayo Okusanya: Quick question. Eli, you kind of -- you mentioned comments before about jewelry being very strong. And I guess everything you seem to read in the news is that diamond prices are going down and the younger generation is not buying diamonds and things like that. So just trying to understand a little bit better why that particular category is doing well. And if there are any categories in particular that you kind of worry about saturation as well? Eli Simon: Sure. So I would say that the jewelry space, frankly, for jewelry and watches, it's coming from a variety of price points. It's clearly the luxury, the uber luxury that just very -- honestly more demand than supply of those types of items. So that allows prices to go up and the consumer is there. But also there's been a lot of new entrants into the space on sort of more of the -- I guess, more affordable price points. So there's a lot of new entrants in this space that we're doing business with that are -- that have great-looking stores, attract maybe that younger consumer. And so it's a category that's important for us. I think, again, these things go in cycles, they change over time. But right now, that is -- it's a trend that we are -- we see, we're focused on. And so it's -- we continue and expand the relationship and expand the stores with some of the more established players, players in the luxury space that we have great relationships with and want to continue to do more and more business with. But also there's this new entrant, again, at a different price point, but they are creating really great stores, great environment that they're focused on getting that younger consumer in an environment that is Instagrammable, right, for lack of a better word. And so it's sort of how we view all of our leases is that we want to go where the consumer goes. And we have a great team. We have boots on the ground. across the country. We have a great team that's focused on new and emerging brands. So we go where the customers are and want to give them more of what they want. And so that's really what we're doing in that space. Brian McDade: Tayo, I think you also see just given the outperformance of the U.S. relative to the rest of the globe that you continue to see luxury retailers bringing their product here, their newest and greatest product, because this is where the action is. So as long as that continues, we think that the trend line will hold. Operator: Our last question is from Ronald Kamdem with Morgan Stanley. Ronald Kamdem: Great. I just had a quick one, just AI related. We're a couple of months into this journey now. And when you're thinking about sort of your business and as well as sort of the retailer business, where do you think we are in terms of the adoption of these tools to better understanding where the customer is coming from and starting to see some tangible benefits? Is it still too early to see tangible results? Just curious like how that's been sort of going, both for your business and the retailers that you partner with? Eli Simon: Sure. I mean it's obviously early days. I don't know if it's the first inning, third inning, but it's definitely early days. I would say from the SPG perspective, I think where we've made leaps and bounds strides over the past several months, and there's so much more we can do, so much more we can do with our data. We're seeing real efficiencies and insights from our -- think about it, we have, I don't know, 29,000, 30,000 different leases, so many different REAs, so many different documents and joint venture documents, loan documents, et cetera. So we're seeing a lot we can do in that space to be quicker, to be more efficient, so much we can do on the marketing front. Again, we have hundreds of centers, so many different retailers. And so the ability to create imagery that's quicker, that looks better is meaningful for us. It's early days, and I'd say the retailers, again, same thing, right, from what we're hearing is that everyone is starting the journey. They're focused on it, but it's not a -- I don't think there's been a sea change in how anybody is operating. I think it's just stepping back bigger picture, I think it makes us more bullish on physical real estate, physical retail. I think we've seen it the younger cohorts, the most excited to come to the mall, the most excited to shop in the mall. As individual websites potentially become harder to navigate to from individual retailers, the physical real estate, the ability to have their brand representation becomes more and more important. And so that leads to more money being reinvested into the stores, creating a better, more unique experience. So we think it's great for us long term. But as far as adoption and anything like that, it's obviously early days. And we do -- as I mentioned earlier, with the Simon Media Network, AI will be a big component of that and our ability to sort through our data better, right, which is a lot, as you can imagine, with billions of visits a year and hundreds of billions -- $100-plus billion in sales. It's a lot of data, a lot of leases, a lot of tenants. And so there's a lot we can do there to be with our Simon Media Network and related entities that's really getting up and running. But overall, we look at this as great for us long term. And our job is to continue to make our properties where retailers want to be and where customers want to be, and that's really what we're focused on. Operator: We have reached the end of our question-and-answer session. I would like to turn the call back over to Eli for closing remarks. Eli Simon: Thank you, everybody, for your questions, and have a great week. Operator: Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation. Before you buy stock in Simon Property Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Simon Property Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* That performance is why people listen. 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Simon Property Group (SPG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Domestic property NOI and real estate FFO growth accelerated to 8.5% and 7.9% respectively, driven by widespread tenant demand and disciplined execution across all platforms. Management noted that shopper traffic and retailer sales volume grew solidly, with comparable sales growth of 5.7% for the second quarter, indicating properties remain preferred destinations for consumers. Leasing activity remains aggressive with over 1,200 leases signed in Q2; new deals increased by more than 20% compared to the prior year, representing approximately 28% of total leased square feet. The company successfully absorbed approximately 1 million square feet of bankruptcy-related space (primarily Saks Off Fifth) during the quarter while maintaining flat occupancy at 96%. Strategic reinvestment in center enhancements, totaling over $400 million recently, is cited as a key driver for attracting new retailers and improving customer perception of property vitality. Retailer sales productivity reached $838 per square foot, a 13.9% increase, supported by unique activations like National Outlet Shopping Day and World Cup fan experiences. Full-year 2026 real estate FFO guidance was increased to a range of $13.20 to $13.30 per share, reflecting an $0.08 increase at the midpoint based on first-half outperformance. The development pipeline remains robust with over $4 billion in projects, including $600 million in new construction starts expected for the second half of 2026 at a blended yield of 9%. Management's guidance assumes a moderation in retailer sales for the back half of the year due to tougher year-over-year comparisons and macro uncertainty, despite seeing no current signs of a slowdown. The company plans to launch the 'Simon Media Network' in the coming weeks to monetize first-party customer insights and its global footprint of over 4,000 digital screens. Refinancing strategy remains proactive to manage a higher interest rate environment, with approximately $0.20 of anticipated interest expense headwind remaining for the balance of the year. The acquisition of the remaining 12% interest in TRG contributed approximately 120 basis points of growth to domestic property NOI in the first half of the year. Reported FFO of $3.12 per share was lower than the prior year's $3.15, primarily due to a non-recurring $0.21 per share gain in 2025 related to the deconsolidation of Forever 21. Higher interest expense and lower interest income combined for a $0.06 per share year-over-year drag on FFO during the second quarter. Management highlighted that while the watch list is at a low point, retailer bankruptcies are viewed as opportunities to recapture space and upgrade to higher-performing merchants. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated that tenant allowances (TIs) are a function of supply and demand; currently, base rent on new deals is up 17% while TIs are down 12%. Reinvestment in centers is prioritized to drive long-term retailer commitment and traffic, even if it impacts short-term cash flow metrics. The Saks Off Fifth boxes, which paid $18 million in rent, are being re-leased to blue-chip retailers for an expected $44 million in total rent. The full financial benefit of these new leases will primarily be a 2027 story as the space was returned later than initially anticipated in May 2026. Luxury remains very strong, while the 'juniors' category targeting Gen Z has seen 16 consecutive months of positive comparable sales. Management noted that restaurant sales have been slightly softer, partly attributed to a decline in alcohol sales across the portfolio. The initiative aims to leverage data from billions of annual visits to create a high-margin advertising business for both endemic and non-endemic brands. The business is currently growing at double-digit to mid-teens percentages, with digital screen investments typically seeing a 1- to 2-year payback period.

This article first appeared on GuruFocus. Real Estate FFO: $1.25 billion, or $3.29 per share, up 7.9% year-over-year. Reported FFO: $3.12 per share, compared to $3.15 per share in the prior-year period. Domestic Property NOI: Increased 8.5% year-over-year for the quarter and 7.6% for the first half of the year. Portfolio NOI: Grew 8.3% for the quarter and 7.5% for the first half of the year on a constant currency basis. Malls and Premium Outlet Occupancy: 96% at the end of the second quarter, flat compared to the first quarter and year over year. The Mills Occupancy: 98.8%. Average Base Minimum Rent: Increased 6.3% year-over-year for malls and premium outlets; ADR for The Mills increased 12.3%. Retailer Sales: $838 per square foot, up 13.9%; total sales volume increased 6.6% over the trailing 12 months and 7.6% in the quarter, with comparable sales growth of 5.7% for the second quarter. Leasing Activity: Signed more than 1,200 leases totaling over 4.8 million square feet; new deals increased more than 20% compared to last year. Initial Base Minimum Rent on New Deals: Up 17% year-over-year; tenant allowance per square foot down 12% year-over-year. Dividend: Declared $2.25 per share for the third quarter, an increase of $0.10 or 4.7% year-over-year. Share Repurchases: Repurchased approximately 793,000 shares of common stock and approximately 238,000 limited partnership units for a $211 million investment at an average purchase price of $205.10 per share. 2026 Guidance: Increased full-year 2026 real estate FFO guidance to a range of $13.20 to $13.30 per share. Warning! GuruFocus has detected 8 Warning Signs with SPG. Is SPG fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Domestic property NOI and real estate FFO growth accelerated to 8.5% and 7.9% respectively in Q2 2026, driven by strong leasing demand and disciplined execution. Leasing momentum remains robust with over 1,200 leases signed in Q2, new deals up 20% year-over-year, and initial base minimum rent on new deals up 17% year-to-date. Retailer sales performance is strong, with mall and premium outlet sales reaching $838 per square foot, up 13.9%, and total sales volume growing 6.6% over the trailing 12 months. The development pipeline is robust, with $1.07 billion in projects underway at a 9% blended yield and over $4 billion in potential future projects, supporting long-term growth. The company raised its full-year 2026 real estate FFO guidance to $13.20-$13.30 per share, reflecting confidence in continued operational outperformance. Higher interest expense and lower interest income combined to create a $0.06 per share drag on FFO in Q2, with expectations of continued pressure through the year. The company absorbed approximately 1 million square feet of retailer bankruptcy-related space returns during the quarter, though it successfully re-leased the space. Occupancy cost remains elevated at 12.5%, which could limit future rent growth potential for some tenants. Sales growth is expected to moderate in the second half of the year due to tougher comparisons, and guidance assumes a slowdown in consumer spending. International travel-related outlet centers, particularly in Vegas and Orlando, are experiencing slower growth due to reduced international tourism, impacting overall portfolio performance. Q: Given the strong sales trends, how should we think about potential upside to 2026 NOI and FFO growth from overage rents if these trends continue? What is baked into guidance? A: Eli Simon (CEO): We have seen no signs of a slowdown; traffic accelerated in July. However, sales are the one thing we cannot control due to macro factors. Guidance effectively assumes a slowdown, so if current conditions continue, we will likely be above the range. Brian McDade (CFO) added that if current conditions persist, there will be a further contribution beyond guidance. Q: Can you provide an update on the 1 million square feet of bankruptcy-related space returned during the quarter? What were the rents, and what is the economic uplift from replacing this space? A: Eli Simon (CEO): The space was primarily from Saks Office. We leased it back quickly, ending July at 96.3% occupancy. The boxes were paying $18 million in rent; deals signed today for about half the space are already well in excess of that, and we expect to turn the $18 million into $44 million. The rent impact will be a 2027 story since we got the space back later than expected. Q: Given occupancy is at 96%, where do you see the greatest opportunity to drive NOI and earnings growth over the next 12 to 18 months? A: Eli Simon (CEO): There is a little more occupancy growth to go, but the key levers are re-tenanting lower performers with better tenants that pay more rent and our development pipeline. We have $1 billion in the ground generating 9% returns, with $600 million more to start by year-end. These developments also benefit the rest of the center beyond the quoted returns. Q: Can you discuss the outlook for tenant allowances (TIs) and whether reducing them is a goal, given the strong leasing environment? A: Eli Simon (CEO): TIs are a function of tenant demand and supply of available space. The mix of deals impacts TIs; for new or less creditworthy tenants, we may pay less. Year-to-date, new deal rents are up 17% while tenant allowances are down 12%. Our focus is on growing cash flow, and we are reinvesting heavily in our centers, which is attracting new retailers and driving growth. Q: As you look ahead to 2027 and beyond, with inline shop rents around $60-$65, are you signing leases in the mid-70s? What is the trajectory for rent growth? A: Eli Simon (CEO): Year-to-date, new leases are signed at $78, but it's not as simple as moving from $65 to $78. Many leases renew at mid-single-digit increases. We focus on the right retailer for each space, not just market rent. The supply and demand story is positive, and we continue to upgrade the merchandise mix with a pipeline of 483 deals, 28% of which are new tenants. Q: Can you provide details on which tenants or categories you are adding to centers versus those you are limiting exposure to? A: Eli Simon (CEO): We are adding across a variety of categories, with the most exciting being new and emerging brands in technology, athleisure, home, and jewelry, particularly targeting Gen Z. These brands come from online, Europe, and Asia. We are also upgrading restaurants, adding $400-$500 million of incremental restaurant sales. The watch list is in very good shape with nothing material. Q: Can you give an update on TRG (The Retail Group) and when the contribution from the additional 12% ownership normalizes? A: Eli Simon (CEO): We are more excited about TRG. We've increased EBITDA margins on managed assets by 300 basis points this year, with another couple hundred basis points to go. The 120 basis points contribution from the additional 12% ownership will annualize in the next two quarters. We are investing significantly in assets like Green Hills, International Plaza, and Cherry Creek for long-term growth. Q: With $4.5 billion of unsecured debt maturing in 2H26 and 2027, how are you thinking about those maturities and current cash? A: Brian McDade (CFO): We are active across various markets, having done two deals in Europe. We haven't accessed yen funding yet but are considering it. Credit spreads are tight, but there is plenty of capital to refinance. We are being proactive about interest expense, which will be a $0.20 drag for the balance of the year. Q: Can you discuss the breadth of the strong sales growth? Is it just the top 50 assets carrying the portfolio? A: Eli Simon (CEO): It's definitely broader than the top 50. Luxury and jewelry remain very strong, and Juniors brands targeting Gen Z have had 16 straight months of positive comps. Restaurants are a bit softer. Florida remains very strong, while border outlets are growing a bit less due to lower international travel. It's a broad-based story across malls, outlets, and mills. Q: Can you provide an update on the Simon Brand Ventures and the opportunity to monetize the visitor count? A: Eli Simon (CEO): We will launch Simon Media Network in the coming weeks to take advantage of first-party customer insights. We have billions of visits and over $100 billion in domestic sales. The business is growing at double-digit mid-teens percent year-over-year. We are investing in screens and touchpoints with a one to two-year payback period, and we see a tremendous opportunity to grow this business significantly over time. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Simon Property Group, Inc.? Here are five stocks we like better. Strong second-quarter performance: Domestic property NOI rose 8.5% year over year and real estate FFO increased 7.9%, supported by higher lease income, acquisitions, tenant demand and retailer sales. Leasing and sales momentum remained robust: Simon signed more than 1,200 leases covering 4.8 million square feet, with new lease rents up 17%. Malls and Premium Outlets sales increased 13.9% per square foot, while occupancy held at 96%. Outlook and shareholder returns improved: The company raised its 2026 real estate FFO guidance to $13.20–$13.30 per share, increased its quarterly dividend 4.7% to $2.25, and continued share repurchases while maintaining a strong balance sheet. Three Oversold REITs With Strong Fundamentals Simon Property Group (NYSE:SPG) reported accelerating second-quarter growth in domestic property net operating income and real estate funds from operations, citing continued tenant demand, higher lease income, acquisitions and solid retailer sales. Chief Executive Officer, President and Chief Operating Officer Eli Simon said domestic property NOI increased 8.5% year over year in the quarter, while real estate FFO rose 7.9%. He said shopper traffic accelerated and retailer sales continued to grow, supporting management’s view that its malls, Premium Outlets and other properties remain attractive destinations for consumers and tenants. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat AI Panic Hits Wall Street: 3 Financial Stocks on Sale “Tenant demand continues to be widespread with no slowdown,” Simon said, pointing to interest from established and emerging retailers across categories, platforms and geographies. The company signed more than 1,200 leases covering over 4.8 million square feet during the second quarter. New deals increased more than 20% from the prior-year period and represented about 28% of total leased square feet. → 3 Dividend Champion Utilities for a Market That Can't Sit Still 2 REITs That Look Attractive in a Stable Rate Environment Through the second quarter, initial base minimum rent per square foot on new leases rose 17% year over year, while tenant allowances per square foot for new leases declined 12%, according to Simon. The company had completed more than 87% of its 2026 lease expirations and was negotiating expirations scheduled for 2027 and 2028. Simon said the prospective-deal pipeline remained ahead of last year’s pace, with more than 100 additional deals and a 26% increase from the year-earlier period. He added that new leases signed year to date carried rents of roughly $78 per square foot, though he cautioned that lease renewals and tenant mix decisions mean expiring inline-shop rents cannot simply be compared with new-deal rates. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Malls and Premium Outlets reported sales of $838 per square foot, up 13.9%. Total sales volume increased 6.6% over the trailing 12 months and 7.6% in the second quarter, while comparable sales grew 5.7% in the quarter. Simon said sales momentum was broad-based rather than concentrated in the company’s largest properties. Luxury, jewelry and watches remained strong, while brands targeting Gen Z consumers recorded 16 consecutive months of positive comparable sales. Restaurants trailed the broader portfolio, he said, while international travel patterns moderated growth at some outlet properties in markets including Las Vegas and Orlando. Chief Financial Officer Brian McDade said Malls and Premium Outlets occupancy ended the quarter at 96%, unchanged from both the prior quarter and the prior year. The Mills portfolio was 98.8% occupied. Average base minimum rent at Malls and Premium Outlets increased 6.3% from a year earlier, while average daily rent at The Mills increased 12.3%. The company absorbed approximately 1 million square feet of bankruptcy-related space returned during the quarter and relet it, McDade said. Simon identified nearly all of that space as former Saks OFF 5TH locations. According to Simon, the affected outlet boxes had generated about $18 million of rent. Leases signed for approximately half the space were already “well in excess” of that amount, and the remaining space was under discussion or near-final agreements. He said the company expects to convert the $18 million in former rent into roughly $44 million, although the contribution will be more meaningful in 2027 because Simon did not regain the boxes until mid-May. Signed-but-not-open occupancy remained near 310 basis points, Simon said. He added that the tenant watch list was at a low point and that any normal-course store closures could create opportunities to improve tenant mix. Real estate FFO totaled $1.25 billion, or $3.29 per share, compared with $1.15 billion, or $3.05 per share, a year earlier. McDade said domestic and international operations contributed $0.29 per share of growth, supported by lease income, cost management and acquisitions. Higher interest expense and lower interest income represented a combined $0.06 per-share year-over-year headwind. Reported FFO was $3.12 per share, compared with $3.15 per share in the prior-year quarter, which included a $0.21-per-share non-cash after-tax gain primarily related to Catalyst Brands’ deconsolidation of Forever 21. Domestic property NOI rose 7.6% in the first half. McDade said about 120 basis points of NOI growth in both the quarter and first half came from Simon’s acquisition of the remaining 12% interest in Taubman Realty Group. Portfolio NOI, including international properties at constant currency, increased 8.3% in the quarter and 7.5% for the first half. The board declared a third-quarter dividend of $2.25 per share, payable Sept. 30 to shareholders of record, representing a 4.7% increase from a year earlier. During the quarter, the company repurchased approximately 793,000 common shares and 238,000 limited partnership units for $211 million, at an average price of $205.10 per share. Simon Property Group increased its full-year 2026 real estate FFO outlook to $13.20 to $13.30 per share, up $0.08 at the midpoint from its previous range. Management said the outlook assumes moderation in retailer sales growth, though Simon said results could exceed the range if current sales trends continue. The company had development projects underway with its share of net costs totaling $1.07 billion and a blended expected yield of 9%. About half of the cost was tied to mixed-use projects. Simon said projects representing more than $600 million of additional net cost could begin construction in the second half, while the broader development pipeline exceeds $4 billion. McDade said Simon Property Group completed $1.4 billion of secured loan transactions during the quarter at a weighted average rate of 5.36%, issued €500 million of five-year senior notes at 3.65%, and closed a $460 million five-year term loan. The company ended the quarter with approximately €9.3 billion of liquidity, net debt to EBITDA below 5 times and fixed-charge coverage of 4.7 times. Simon also said the company expects to announce the launch of the Simon Media Network in coming weeks, an initiative intended to use first-party customer data, digital platforms and more than 4,000 in-property screens to expand advertising and media opportunities. He described the business as growing at a mid-teens annual percentage rate, while emphasizing that its longer-term potential remains uncertain. Simon Property Group, Inc (NYSE: SPG) is a publicly traded real estate investment trust (REIT) that owns, develops and manages retail real estate properties. Its core business activities include acquisition, development, leasing and property management of regional malls, outlet centers and mixed‑use retail destinations. The company operates retail brands that include high‑profile regional shopping centers and the Premium Outlets platform, and it provides services such as tenant leasing, marketing, property operations and capital projects to optimize asset performance. Simon's portfolio spans a broad mix of enclosed malls, open‑air centers, outlet properties and mixed‑use developments, and the company pursues redevelopment and repositioning to adapt properties to changing consumer and retail trends. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Simon Property Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

INDIANAPOLIS, Aug. 10, 2026 /PRNewswire/ -- Simon®, a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations, today reported results for the quarter ended June 30, 2026. "We delivered excellent financial and operational results this quarter," said Eli Simon, Chief Executive Officer, President and Chief Operating Officer. "Real Estate FFO per share grew 7.9% year-over-year, supported by consistent broad-based leasing demand, accelerated traffic increases, strong retailer sales growth, and the contribution from acquisitions completed over the past year. Today, we are once again increasing our guidance for full-year 2026 Real Estate FFO per share." Results for the Quarter Net income attributable to common stockholders was $483.1 million, or $1.49 per diluted share, as compared to $556.1 million, or $1.70 per diluted share in 2025. Net income for the second quarter of 2025 included a non-cash after-tax gain of $0.21 per diluted share from investment activity. Real Estate Funds From Operations ("Real Estate FFO") was $1.249 billion, or $3.29 per diluted share as compared to $1.154 billion, or $3.05 per diluted share in the prior year, an increase of 7.9%. Funds From Operations ("FFO") was $1.185 billion, or $3.12 per diluted share as compared to $1.189 billion, or $3.15 per diluted share in the prior year, inclusive of the $0.21 per diluted share non-cash after-tax gain in the prior year period. Domestic property Net Operating Income ("NOI") increased 8.5% and portfolio NOI increased 8.3% compared to the prior year period. Results for the Six Months Net income attributable to common stockholders was $962.7 million, or $2.97 per diluted share, as compared to $969.8 million, or $2.97 per diluted share in 2025. Real Estate FFO was $2.457 billion, or $6.46 per diluted share as compared to $2.268 billion, or $6.01 per diluted share in the prior year, an increase of 7.5%. FFO was $2.293 billion, or $6.03 per diluted share as compared to $2.194 billion, or $5.82 per diluted share in the prior year. Domestic property NOI increased 7.6% and portfolio NOI increased 7.5% compared to the prior year period. U.S. Malls and Premium Outlets Operating Statistics Occupancy at June 30, 2026 was 96.0%, unchanged from June 30, 2025. Base minimum rent per square foot was $62.42 at June 30, 2026, compared to $58.70 at June 30, 2025, an increase of 6.3%. Reported retailer sales per square foot was $838 for the trailing 12 months ended June 30, 2026, compared to $736 at June 30, 2025, an increase of 13.9%. DividendsToday, Simon's Board of Directors declared a quarterly common stock dividend of $2.25 for the third quarter of 2026. This is an increase of $0.10, or 4.7% year-over-year. The dividend will be payable on September 30, 2026 to shareholders of record on September 9, 2026. Simon's Board of Directors declared the quarterly dividend on its 8 3/8% Series J Cumulative Redeemable Preferred Stock (NYSE: SPGPrJ) of $1.046875 per share, payable on September 30, 2026 to shareholders of record on September 16, 2026. Common Stock Repurchase ProgramDuring the quarter ended June 30, 2026, the Company repurchased 793,077 shares of its common stock and 237,618 limited partnership units at an average price of $205.10 per share/unit, for a total investment of $211.4 million. Capital Markets and Balance Sheet LiquidityDuring the quarter, the Company completed 8 secured loan transactions totaling approximately $1.4 billion (U.S. dollar equivalent). The weighted average interest rate on these loans was 5.36%. The Company completed a Euro senior notes offering totaling €500 million with a 3.65% coupon rate and term of 5 years. Proceeds were used for general corporate purposes. Additionally, the Company closed a $460 million 5-year term loan priced at SOFR +0.70%. Proceeds were used to repay the $460 million draw under the Company's $5 billion revolving credit facility. As of June 30, 2026, Simon had approximately $9.3 billion of liquidity consisting of $1.7 billion of cash on hand, including its share of joint venture cash, and $7.6 billion of available capacity, net of outstanding commercial paper, under its $8.5 billion of total revolving credit facilities. 2026 GuidanceThe Company's estimates for net income attributable to common stockholders per diluted share and Real Estate FFO per diluted share for the year ending December 31, 2026 are included in the table below and are reconciled in the Company's supplemental information. The Company is increasing its outlook for full year 2026 Real Estate FFO per diluted share to $13.20 to $13.30, an increase of $0.08 per diluted share at the midpoint. Conference CallSimon will hold a conference call to discuss the quarterly financial results today from 5:00 p.m. to 6:00 p.m. Eastern Daylight Time, Monday, August 10, 2026. A live webcast of the conference call will be accessible in listen-only mode at investors.simon.com. An audio replay of the conference call will be available until August 17, 2026. To access the audio replay, dial 1-844-512-2921 (international +1-412-317-6671) passcode 13761320. Supplemental Materials and WebsiteSupplemental information on our second quarter 2026 performance is available at investors.simon.com. This information has also been furnished to the SEC in a current report on Form 8-K. We routinely post important information online on our investor relations website, investors.simon.com. We use this website, press releases, SEC filings, quarterly conference calls, presentations and webcasts to disclose material, non-public information in accordance with Regulation FD. We encourage members of the investment community to monitor these distribution channels for material disclosures. Any information accessed through our website is not incorporated by reference into, and is not a part of, this document. Non-GAAP Financial MeasuresThis press release includes FFO, FFO per share, Real Estate FFO, Real Estate FFO per share and domestic and portfolio NOI growth which are financial performance measures not defined by generally accepted accounting principles in the United States ("GAAP"). Real Estate FFO is FFO of the operating partnership less other platform investments and loss (gain) due to disposal, exchange, or revaluation of equity interests, in each case, net of tax; and unrealized losses (gains) in fair value of publicly traded equity instruments and derivative instrument, net. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in Simon's supplemental information for the quarter. FFO and NOI growth are financial performance measures widely used in the REIT industry. Our definitions of these non-GAAP measures may not be the same as similar measures reported by other REITs. Forward-Looking StatementsCertain statements made in this press release may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although Simon believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, Simon can give no assurance that its expectations will be attained, and it is possible that Simon's actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to: the intensely competitive market environment in the retail real estate industry and the retail industry, including e-commerce; the inability to renew leases and relet vacant space at existing properties on favorable terms; the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; the potential loss of anchor stores or major tenants; an increase in vacant space at our properties; the loss of key management personnel; changes in economic and market conditions that may adversely affect the general retail environment, including but not limited to those caused by inflation, the impact of tariffs and global trade disruptions on us to the extent impacting our tenants, recessionary pressures, wars, escalating geopolitical tensions as a result of the war in Ukraine and the conflicts in the Middle East, and supply chain disruptions; the potential for violence, civil unrest, criminal activity or terrorist activities at our properties; the availability of comprehensive insurance coverage; security breaches that could compromise our information technology or infrastructure; changes in market rates of interest; our international activities subjecting us to risks that are different from or greater than those associated with our domestic operations, including changes in foreign exchange rates; the impact of our substantial indebtedness on our future operations, including covenants in the governing agreements that impose restrictions on us that may affect our ability to operate freely; any disruption in the financial markets that may adversely affect our ability to access capital for growth and satisfy our ongoing debt service requirements; any change in our credit rating; our continued ability to maintain our status as a REIT; changes in tax laws or regulations that result in adverse tax consequences; risks associated with the acquisition, development, redevelopment, expansion, leasing and management of properties; the inability to lease newly developed properties on favorable terms; risks relating to our joint venture properties, including guarantees of certain joint venture indebtedness; the effects of climate change; environmental liabilities; natural or other disasters; uncertainties regarding the impact of pandemics, epidemics or public health crises, and the associated governmental restrictions on our business, financial condition, results of operations, cash flow and liquidity; and general risks related to real estate investments, including the illiquidity of real estate investments. Simon discusses these and other risks and uncertainties under the heading "Risk Factors" in its annual and quarterly periodic reports filed with the SEC. Simon may update that discussion in subsequent other periodic reports, but except as required by law, Simon undertakes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise. About SimonSimon® is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales. View original content to download multimedia:https://www.prnewswire.com/news-releases/simon-reports-second-quarter-2026-results-and-increases-guidance-for-full-year-2026-real-estate-ffo-per-share-302847345.html

Simon Property (SPG) reported $1.79 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 19.5%. EPS of $3.29 for the same period compares to $1.70 a year ago. The reported revenue represents a surprise of +4.49% over the Zacks Consensus Estimate of $1.71 billion. With the consensus EPS estimate being $3.18, the EPS surprise was +3.46%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Simon Property performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: U.S. Malls and Premium Outlets - Occupancy - Total Portfolio: 96% compared to the 96% average estimate based on two analysts. Revenue- Management fees and other revenues: $40.83 million versus $39.62 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.7% change. Revenue- Other income: $90.06 million versus $74.19 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.1% change. Revenue- Lease income: $1.66 billion compared to the $1.6 billion average estimate based on two analysts. The reported number represents a change of +20.3% year over year. Net Earnings Per Share (Diluted): $1.49 versus $1.49 estimated by three analysts on average. View all Key Company Metrics for Simon Property here>>> Shares of Simon Property have returned +1.9% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Simon Property Group, Inc. (SPG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research