- Simon Property Group raised its 2025 FFO forecast to $12.60–$12.70 per share, citing strong leasing demand.
- Occupancy rose to 96.4% at malls and outlets, with base rents increasing to $59.14 PSF.
- Q3 2025 real estate FFO reached $3.22 per share, up from $3.05 a year earlier.
- Lease income climbed to $1.45B, reflecting continued retail sector resilience.
Leasing Drives Gains
Simon Property Group, the largest US mall owner, raised its full-year FFO guidance following another quarter of strong leasing momentum, reports Reuters. The company owns a mix of enclosed malls and high-end outlet centers. It attributed the improved outlook to healthy tenant demand and robust rental growth.
As of September 30, occupancy at its properties reached 96.4%, slightly higher than 96.2% a year ago. Meanwhile, base rents grew to $59.14 PSF, reflecting continued pricing power in a tight retail leasing environment.
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Q3 Performance Highlights
In the third quarter, Simon reported real estate FFO of $3.22 per share—exceeding last year’s $3.05. Total lease income rose 8% to $1.45B as the REIT benefited from both higher rents and stable tenant occupancy.
Simon’s performance follows similar optimism from peer Regency Centers. The company also raised its annual FFO forecast, citing resilient leasing demand across its portfolio of grocery-anchored shopping centers.
Outlook
Simon’s upgraded forecast points to ongoing strength in brick-and-mortar retail real estate, particularly in premium shopping destinations. With luxury tenants like LVMH anchoring its portfolio and a continued rebound in foot traffic, the REIT is positioning itself for solid performance heading into 2026.
