Simon Property Group’s shares surged 2.83% to $161.68 after the mall operator reported stellar quarterly results, surpassing analyst expectations with earnings of $1.70 per share—9.68% above the $1.55 forecast. Revenue hit $1.5 billion, exceeding projections by 8.7%. The company achieved a record 99.3% occupancy rate at its premium "Mills" outlets, up 90 basis points quarterly, while traditional malls maintained a solid 96% occupancy. Funds from operations (FFO) rose 4.1% to $3.05 per share, reflecting robust demand for retail space.
Strategic Growth and Dividend Boost
Simon Property bolstered its portfolio with a $512 million acquisition of Miami’s Brickell City Center, expected to be immediately accretive. The company raised its annual FFO guidance to $12.45–$12.65 per share and increased its quarterly dividend by 4.9% to $2.15, reinforcing its reputation as a reliable income stock with a 5.12% yield. Despite cautious optimism for 2026 amid potential trade tariffs, the strong operational performance and strategic moves underscore its market resilience.