Simon Property Group’s retailer productivity accelerated during the second quarter of 2026, with trailing 12-month retailer sales per square foot increasing 13.9% to $838 from $736 a year earlier, as base minimum rent also rose.
Base minimum rent per square foot increased 6.3% to $62.42 from $58.70. Occupancy across Simon’s U.S. malls and Premium Outlets remained at 96%, unchanged from the prior-year period.
The increase in retailer sales and rents accompanied stronger property-level financial performance. Domestic property net operating income increased 8.5% year-over-year during Q2, while portfolio NOI increased 8.3%.
Real Estate Funds From Operations increased 7.9% to $1.249 billion, or $3.29 per diluted share, compared with $1.154 billion, or $3.05 per diluted share, in the prior-year quarter.
Simon also continued returning capital to shareholders. The company’s board increased its quarterly common dividend by 4.7% year-over-year to $2.25 per share. During Q2, Simon repurchased 793,077 common shares and 237,618 limited partnership units for a combined investment of approximately $211.4 million.
The company remained highly liquid while deploying capital. Simon completed approximately $1.4 billion of secured loan transactions during the quarter, issued €500 million of five-year senior notes and closed a $460 million five-year term loan. It ended June with approximately $9.3 billion of liquidity, including $1.7 billion of cash and $7.6 billion of available revolving credit capacity.
Following the stronger operating performance, Simon again raised its full-year 2026 Real Estate FFO guidance to $13.20 to $13.30 per diluted share from $13.10 to $13.25 previously.
KEY QUOTES:
“We delivered excellent financial and operational results this quarter. 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.”
Eli Simon, Chief Executive Officer, President And Chief Operating Officer Of Simon Property Group
