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Simon Property Q1 FFO Beats Estimates on Higher Revenues

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Simon Property Group, Inc.’s (SPG - Free Report) first-quarter 2025 real estate funds from operations (FFO) per share of $2.95 surpassed the Zacks Consensus Estimate of $2.91. This compares to a real estate FFO of $2.91 per share a year ago.

Results reflect an increase in revenues, backed by a rise in the base minimum rent per square foot and occupancy levels. SPG reaffirmed its guidance for 2025 real estate FFO per share.

Simon Property generated revenues of $1.47 billion in the quarter, which missed the Zacks Consensus Estimate by 0.67%. The reported figure increased 2.1% year over year.

According to David Simon, the chairman, CEO and president of Simon Property Group, "We delivered strong financial and operational performance and enhanced our portfolio with the acquisition of The Mall Luxury Outlets in Italy and the successful opening of Jakarta Premium Outlets in Indonesia. As macroeconomic conditions continue to shift, we are well-positioned with a fortress balance sheet and a proven track record of navigating successfully through a wide range of economic cycles.”

SPG’s First Quarter in Detail

SPG reported revenues from lease income of $1.37 billion, 5% higher than the prior-year period’s figure. Our estimate was pegged at $1.33 billion.

As of March 31, 2025, the occupancy for the U.S. Malls and Premium Outlets portfolio came in at 95.9%, up 40 basis points from 95.5% as of March 31, 2024. We projected the metric to be 96.5%.

The base minimum rent per square foot for the U.S. Malls and Premium Outlets portfolio was $58.92 as of March 31, 2025, rising from $57.53 as of March 31, 2024. This reflected an increase of 2.4%.

Domestic property net operating income (NOI) increased 3.4% year over year, and portfolio NOI increased 3.6%.

SPG’s Portfolio Activity

In January 2025, Simon Property completed the acquisition of two luxury outlets in Italy, namely, The Mall Firenze in Leccio, near Florence and The Mall Sanremo, on the Italian Riviera.

In March 2025, Simon Property’s 50% owned, Jakarta Premium Outlets in Tangerang, Indonesia, opened with 302,000 square feet featuring global and local brands and international dining options.

Balance Sheet Position of SPG

Simon Property exited the first quarter of 2025 with $10.1 billion of liquidity. This comprised $1.9 billion of cash on hand, including its share of joint venture cash and $8.2 billion of available capacity under the company’s revolving credit facilities.

SPG’s Outlook for 2025

For 2025, Simon Property reaffirmed its real estate FFO per share guidance in the range of $12.40-$12.65. The Zacks Consensus Estimate of $12.54 lies within the guided range.

SPG’s Dividend Update

Concurrent with its first-quarter earnings release, Simon Property announced a quarterly common stock dividend of $2.10 for the second quarter of 2025. The dividend will be paid out on June 30 to shareholders of record as of June 9, 2025.

SPG’s Zacks Rank

Currently, SPG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Simon Property Group, Inc. Price, Consensus and EPS Surprise

Simon Property Group, Inc. Price, Consensus and EPS Surprise

Simon Property Group, Inc. price-consensus-eps-surprise-chart | Simon Property Group, Inc. Quote

 

Performance of Other Retail REITs

Regency Centers Corporation (REG - Free Report) reported first-quarter 2025 NAREIT FFO per share of $1.15, outpacing the Zacks Consensus Estimate of $1.14. The figure increased 6.5% from the prior-year quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

REG's results reflected healthy leasing activity. It witnessed a year-over-year improvement in the same-property net operating income and base rents during the quarter.

Kimco Realty Corp. (KIM - Free Report) reported first-quarter 2025 FFO per share of 44 cents, beating the Zacks Consensus Estimate of 42 cents. The metric grew 12.8% from the year-ago quarter.

Results have reflected better-than-expected growth in revenues, though a rise in interest expenses acted as a dampener for KIM.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.


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