Simon Property lifts annual FFO forecast on steady leasing demand

Simon Property

11/05/2026 22:05

May 11 (Reuters) - Commercial real estate investment trust Simon Property Group SPG.N raised the lower end of its annual real estate funds from operations forecast on Monday, banking on steady demand at its malls and shopping centers.

The company has benefited from higher rents, supported by limited retail space supply and robust leasing demand, though macroeconomic uncertainty, softer consumer spending and the continued shift to e-commerce channels continue to pose risks.

Simon Property now expects annual real estate funds from operations (FFO) between $13.10 and $13.25 per share, compared with its earlier forecast of $13 to $13.25

The company, however, cut its annual forecast for net income to between $6.61 and $6.67 per share from the earlier target of $6.87 to $7.12 apiece, the midpoint of which was broadly in line with analysts' average estimate of $6.65, according to data compiled by LSEG.

For the quarter ended March 31, FFO per share rose 9% to $2.91 but missed analysts' expectations of $3.03. Revenue for the quarter came in at $1.76 billion, beating estimates of $1.51 billion.

Quarterly occupancy increased to 96% from 95.9% a year earlier, while base minimum rent per square foot rose 5.2% to $61.99.

In March, Simon Property had appointed COO Eli Simon as its new CEO after longtime chief David Simon died following a battle with cancer.

 (Reporting by Neil J Kanatt in Bengaluru; Editing by Diti Pujara)

 ((Neil.JKanatt@thomsonreuters.com))