Yahoo Finance

• Real Estate FFO: $2.95 per share in Q1 2025, up from $2.91 per share in the prior year.

• Leasing Activity: 1,500 leases signed for more than 5.1 million square feet.

• Malls and Premium Outlet Occupancy: 95.9%, up 40 basis points year-over-year.

• The Mills Occupancy: 98.4%, up 70 basis points year-over-year.

• Average Base Minimum Rents: Increased 2.4% for malls and outlets, 3.9% for The Mills year-over-year.

• Retailer Sales per Square Foot: $733 per square foot for the quarter.

• Occupancy Cost: 13.1% at the end of the quarter.

• Domestic NOI Growth: Increased 3.4% year-over-year for the quarter.

• Portfolio NOI Growth: Increased 3.6% year-over-year at constant currency.

• Funds from Operations: $1.0 billion or $2.67 per share, compared to $1.33 billion or $3.56 per share last year.

• Development Projects: Net cost of $944 million with a blended yield of 9%.

• Net Debt to EBITDA: 5.2 times at the end of the quarter.

• Fixed Charge Coverage Ratio: 4.6 times.

• Dividend: $2.10 per share for Q2, a 5% increase year-over-year.

• 2025 Real Estate FFO Guidance: Reaffirmed at $12.40 to $12.65 per share.

• Warning! GuruFocus has detected 4 Warning Signs with SPG.

Release Date: May 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Simon Property Group Inc (NYSE:SPG) exceeded its plan for the first quarter of 2025, showcasing strong performance.

• The company completed acquisitions of luxury outlets in Florence and Sanremo, Italy, and opened its first outlet in Jakarta, Indonesia, expanding its international footprint.

• SPG reported a 5% increase in net income, contributing to a $0.14 growth in Real Estate FFO per share.

• Occupancy rates for malls and premium outlets increased to 95.9%, and the mills occupancy rose to 98.4%, indicating strong demand.

• The company announced a dividend increase of $0.10 per share, reflecting a 5% year-over-year growth, payable on June 30.

Negative Points

• First quarter funds from operations were lower at $1.0 billion or $2.67 per share compared to $1.33 billion or $3.56 per share last year, due to prior year gains not repeating.

• The company faced a $0.17 per share loss from noncash unrealized mark-to-market and fair value adjustments on Klepierre's exchangeable bond.

• There is uncertainty regarding retailer sales due to macroeconomic and tariff issues, potentially impacting future performance.

• Interest income, land sales, and lease settlements were $0.10 lower year-over-year, affecting overall financial results.

• The company is cautious about future development and acquisition activities due to macroeconomic uncertainties, which may slow growth initiatives.