Simon® Announces Impressive Fourth Quarter and Full Year 2025 Financial Results

Simon® Reports Robust Financial Results for 2025

Simon Property Group, a leader in the real estate investment trust (REIT) sector, has unveiled its financial performance for the fourth quarter and the entirety of 2025. The company has demonstrated substantial growth, highlighting its commitment to enhancing shareholder value while expanding its footprint in the retail and mixed-use landscape.

Fourth Quarter Performance

Simon’s fourth quarter results have showcased impressive financial metrics. The company reported a staggering net income of $3.048 billion, translating to a significant $9.35 per diluted share. This figure marks a sharp increase from the $667.2 million, or $2.04 per diluted share, recorded during the same quarter in the previous year. A notable factor in this surge is attributed to a non-cash gain of approximately $2.89 billion linked to Simon's acquisition of Taubman Realty Group’s remaining interest.

Real Estate Funds From Operations (FFO) also demonstrated robust growth, amounting to $1.328 billion, with a diluted share value of $3.49, a 4.2% increase compared to the previous year. However, the overall FFO reflected a decline to $1.242 billion or $3.27 per diluted share, down from $1.389 billion or $3.68 per diluted share in the previous year. The fluctuation in FFO can be attributed to various one-off expenses, including restructuring costs and losses from certain investments. Additionally, Simon's domestic properties showed a 4.8% increase in net operating income (NOI), reaffirming the company's strong operational performance.

Year-End Highlights

When reviewed over the full year, Simon achieved a net income attributable to common shareholders standing at $4.624 billion—equivalent to $14.17 per diluted share—up from $2.368 billion or $7.26 per diluted share recorded in 2024. The Real Estate FFO for 2025 reached $4.812 billion, marking a 4.0% growth from the prior year. Total FFO for the year settled at $4.663 billion, which is lower than the $4.877 billion reported in 2024.

The operating statistics emphasize diversification and growth; occupancy rates across U.S. malls and premium outlets stood at 96.4%, slightly down from 96.5% year-over-year. Minimum base rents have seen a healthy increment, rising to $60.97 per square foot, a 4.7% increase from the previous period. Furthermore, retailer sales per square foot impressively surged by 8.1%, reaching $799.

Strategic Initiatives and Developments

Throughout 2025, Simon executed over 17 million square feet in new leases and initiated various redevelopment projects, with 23 significant projects completed. Additionally, the group opened a new Premium Outlet in Indonesia and enhanced its retail property portfolio with a $2 billion acquisition of high-quality assets.

In terms of financial maneuvers, Simon executed a senior notes offering that raised $1.5 billion, alongside securing $7.0 billion through various loan transactions. Furthermore, Simon's liquidity position remains robust, with $9.1 billion available, consisting of both cash reserves and credit lines.

Simon’s Board of Directors has also declared a quarterly dividend of $2.20 for the first quarter of 2026, reflecting a robust 4.8% year-over-year increase. The continual rise in dividends showcases Simon’s strong commitment to returning value to its shareholders, signaling confidence in sustained operational health and financial performance.

Looking Ahead

As Simon enters 2026, the company has provided a cautious yet optimistic guidance for the year ahead, projecting net income per diluted share to be in the range of $6.87 to $7.12, with Real Estate FFO anticipated to range from $13.00 to $13.25. The forthcoming conference call scheduled for February 2, 2026, aims to offer additional insights into the financial results and strategic outlook.

In closing, Simon Property Group continues to pave the way for sustainable growth through disciplined investment strategies while enhancing shareholder returns, solidifying its stronghold in the retail real estate sector.