SPG US S&P 500Russell 1000 Earnings call

Simon Property Group (SPG) · Q2 2026 results and valuation

Share price: $234.75 · 2026-11-11

Simon Property Group owns, develops, and manages shopping, dining, entertainment, and mixed-use destinations, including malls and outlet centers. The company operates these properties for retail customers across the United States, Puerto Rico, and international markets in Asia, Europe, and Canada. Source: 10-K annual report (2026-02-25)

Results Q2 2026 vs Q1 2026 · previous quarter · published 10 Aug 2026 and 11 May 2026

Net income up 1.0% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.

1 · Numbers

+1.0%

Net income vs Q1 2026

Outlook given

Net income 574.1M vs 568.5M

Revenue +1.9%

Why Against the same quarter last year (−10.8%), net income fell because the prior year's period included a $0.21 per share noncash after-tax gain from the deconsolidation of Forever 21, while higher interest expense and lower interest income combined were a $0.06 drag.

2 · How management spoke

Cautious

Among the least upbeat of all company calls

Answers to analysts: upbeat, in line with the script.

Similar to last call.

3 · What stood out

Simon Property Group increased its full year 2026 real estate FFO guidance to a range of $13.20 to $13.30 per share.

Valuation

Is Simon Property Group undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 6.3% growth a year (3-year revenue growth), the model's fair value is $93.65 a share — the stock trades 151% above it. Today's price assumes 14.3% growth a year.

Current price

$234.75

close of 2026-11-11

Market implies growth of i

+14.3% for 10 yrs

Fair value / share

$93.65

Buy below

$70.24

Price vs fair value

Overvalued 151%

Price vs buy-below price

Overvalued >200%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

SPG increased its full year 2026 real estate FFO guidance to a range of $13.20 to $13.30 per share based on first-half results and the outlook for the remainder of the year.
Figure

Year-to-date through the second quarter, initial base minimum rent per square foot on new deals rose 17% year-over-year, while tenant allowance per square foot fell 12% year-over-year.

Source quote
“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.”
Figure

Its development pipeline remains robust with over $4 billion of projects, which Simon Property believes will generate attractive returns, enhance its properties and support long-term growth in cash flow, FFO and dividends per share.
Figure

Real estate FFO increased 7.9% to $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.

Source quote
“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%.”
Figure

Malls and Premium Outlets occupancy remained flat at 96% because the company relet approximately 1 million square feet of space returned due to retailer bankruptcies.

Source quote
“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.”

4 more

Figure

The company reached 96.3% as of the end of July.

Source quote
“And again, as of the end of July, we're at 96.3%.”
Figure

Growth is driven by a broad-based story where malls, outlets, and mills are all positive comping rather than being carried by just a few centers.

Source quote
“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.”
Figure

The company increased the margin of its managed assets by 300% this year.

Source quote
“But the assets that we manage, we've increased the margin by 300% this year.”
Figure

The company guided toward $0.25 to $0.30 of negativity of interest expense at the beginning of the year.

Source quote
“At the beginning of the year, we guided towards $0.25 to $0.30 of negativity of interest expense on this year.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Cautious (was cautious)

Answers to analysts Upbeat (was typical)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“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.”

“Maybe obviously, very strong NOI growth, even excluding the TRG, 7% plus and sales growth through the roof with 13% plus.”

“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.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric	Q2 2026period end 2026-06-30	Q1 2026period end 2026-03-31	Change	Q2 2025	YoY
Revenue	1.79B	1.76B	+1.9%	1.50B	+19.5%
Operating income	824.1M	762.2M	+8.1%	744.2M	+10.7%
Net income	574.1M	568.5M	+1.0%	643.7M	−10.8%
EPS	1.49	1.48	+0.7%	1.70	−12.4%
P/E today 16.5	15.8	13.0	+2.8	24.8	−9.0

Topics

Most discussed now

As individual websites potentially become harder to navigate to from individual retailers, the physical real estate, the ability to have...
The number of new deals signed in the quarter increased more than 20% compared to last year, and new deals...
There's no market rent really in its industry or how Simon Property thinks about it is what's the market rent for...
What that's led to, frankly, is if you go and look at some of the legacy players in the spaces...
Their merchandise looks better, and it's really a great symbiotic relationship, which Simon Property is very proud of.

Faded since Q1 2026

Fading Occupancy gains, increased shopper traffic and higher retailer sales drove strong cash flow growth in the quarter.
Fading Domestic and international operations both performed well and contributed $0.27 of growth, driven by increased lease income along with…
Fading I really the first part of the question that Simon Property has any leverage or real pricing power over the retailers.
Fading I'd say from a corporate integration perspective, it's gone according to plan, effectively fully completed all the corporate integration…

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-11-05 Results of operations; Regulation FD disclosure · SEC 8-K
2026-08-10 Results of operations; Regulation FD disclosure · SEC 8-K
Real Estate FFO was $1.249 billion, or $3.29 per diluted share, representing a 7.9% increase compared to $1.154 billion, or $3.05 per diluted share in the prior year.
2026-05-15 Shareholder vote results · SEC 8-K · routine
2026-05-11 Results of operations; Regulation FD disclosure · SEC 8-K
Real Estate FFO was $1.208 billion, or $3.17 per diluted share, compared to $1.113 billion, or $2.95 per diluted share in the prior year, an increase of 7.5%.
2026-03-24 Director or officer change; Regulation FD disclosure · SEC 8-K
The Board appointed Eli Simon as Chief Executive Officer and President and Larry Glasscock as Non-Executive Chairman following the passing of David Simon on March 22, 2026.
2026-03-05 Material agreement; New financial obligation · SEC 8-K
Simon Property Group, L.P. entered into a fourth amended and restated $5,000,000,000 credit agreement dated March 5, 2026.
2026-02-05 Other events · SEC 8-K
Simon Property Group, Inc. authorized a new common stock repurchase program of up to $2.0 billion through February 29, 2028, replacing a previous $2.0 billion program.
2026-02-05 Director or officer change · SEC 8-K
Simon Property Group announced the appointment of Martin J. Cicco to its Board of Directors on February 5, 2026.

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

the second half of this year

construction start for projects representing more than $600 million of additional net cost

Source quote
“Looking ahead, we expect projects representing more than $600 million of additional net cost to start construction in the second half of this year.”
September 30

dividend payment date

Source quote
“The dividend is payable on September 30 to shareholders as of the record date.”
full year 2026

real estate FFO guidance

Source quote
“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.”
by the end of the year

approval and start of $600 million in development pipeline

Source quote
“We have hopefully $600 million plus that will be approved and start by the end of the year.”
over the next, call it, year or so

high-profile developments and redevelopments to add $400 million to $500 million of incremental restaurant sales

Source quote
“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.”