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Simon Property Group, Inc.’s SPG 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.