Simon Property Group collects rent from retailers, restaurants and other businesses at malls, outlets and mixed-use destinations. In the third quarter ended September 30, 2026, its properties generated more operating earnings, but profit attributable to common shareholders fell 17.7% to $499.0 million. Investment losses, acquisition-related accounting costs and higher interest expense explain the gap. The property business remains strong enough to fund substantial construction, while shareholder payments and refinancing leave less cash available for further expansion.
Research cutoff: November 12, 2026, New York date. Financial results are through September 30; the latest company financial disclosure used is the November 6 filing.
1. Better leasing supports growth, while acquisitions enlarge the reported increase
Simon is earning more from its properties, but the revenue increase is not a measure of growth at an unchanged set of malls. Retailers pay fixed rent, reimburse certain property expenses and sometimes pay additional rent tied to their sales. Simon benefits when it keeps space occupied, signs stronger leases and adds productive properties.
Reported revenue rose 13.3% in the quarter. Operating expenses rose by more dollars than revenue, so operating profit slipped. The first nine months show the same pressure on the amount of revenue left as operating profit, even though operating profit itself increased.
| Consolidated results, US$ million except margins and EPS | Third quarter 2026 | Third quarter 2025 | First nine months 2026 | First nine months 2025 |
|---|---|---|---|---|
| Revenue | 1,814.6 | 1,601.6 | 5,362.2 | 4,573.0 |
| Operating income before other items | 804.5 | 812.9 | 2,390.7 | 2,284.7 |
| Operating margin, calculated | 44.3% | 50.8% | 44.6% | 50.0% |
| Consolidated net income | 565.3 | 702.7 | 1,708.0 | 1,824.2 |
| Net income attributable to common shareholders | 499.0 | 606.2 | 1,461.7 | 1,576.0 |
| Diluted earnings per common share, US$ | 1.54 | 1.86 | 4.51 | 4.83 |
Source: Simon’s September 2026 Form 10-Q, consolidated statement of operations, p. 6. Margins divide the reported operating-income line by revenue; they include depreciation and amortization. Consolidated net income includes outside partners’ earnings; common-shareholder profit removes their share and preferred dividends.
The largest change in accounting scope came from Taubman Realty Group, or TRG. Simon already owned 88%, but the partnership arrangements prevented it from controlling the business. After buying the remaining 12% on October 31, 2025, Simon began reporting the revenues, expenses, assets and debt of TRG’s controlled properties inside its own consolidated accounts. Previously, Simon reported its share of TRG’s result mainly in a separate investment-income line.
That change matters in this comparison: the third quarter of 2025 preceded consolidation, while the third quarter of 2026 included it. TRG contributed $189.2 million of consolidated revenue in the latest quarter. Its inclusion also brought depreciation and interest costs. Simon’s nine-month depreciation and amortization increased $423.8 million, of which $404.7 million related to acquisition activity. Day-to-day costs also increased. Acquisitions accounted for $22.3 million of the $31.0 million quarterly increase in property operating expenses, and management also cited inflation. The operating-margin decline therefore reflects both the expanded business and higher costs.
Sources: Form 10-Q, Notes 2 and 4, pp. 15–16 and 23–25; management’s discussion, pp. 49–50. TRG consolidation covers 11 properties; another 11 remain accounted for as joint-venture investments.
The leasing evidence is more encouraging than the reported margin alone suggests. Occupancy has remained high across several September reporting dates, and average contracted rent has risen.
| U.S. Malls and Premium Outlets | September 30, 2024 | September 30, 2025 | September 30, 2026 |
|---|---|---|---|
| Leased share of eligible gross leasable area | 96.2% | 96.4% | 96.5% |
| Average annual base minimum rent, US$ per square foot | 57.71 | 59.14 | 62.75 |
Sources: Simon’s November 1, 2024 results, U.S. operating statistics; Form 10-Q, management’s discussion, pp. 47–48. These are each period’s reported portfolios, which change with acquisitions and disposals. Occupancy excludes specified large-store and outlot categories; the 2026 increase is 0.1 percentage point.
There is little eligible space left to lease, so better lease terms and redevelopment matter more than a large recovery in occupancy. During the first nine months, Simon signed 853 new leases and 1,419 renewals in the disclosed U.S. malls-and-outlets category, covering 8.6 million square feet. The comparable 2025 total covered 8.3 million square feet.
New leases began at average annual base rent of $76.03 per square foot, versus $65.09 a year earlier. Simon also promised less money toward those tenants’ fit-outs: the average allowance fell to $54.12 per square foot from $60.13. That combination is favorable for future rental income and cash spending. These are different groups of new leases, however, so the 16.8% rent increase is not a rent increase on identical space. Large anchors, redevelopment leases and several other categories are excluded.
Source: Form 10-Q, “Current Leasing Activities,” p. 48.
Simon’s share of portfolio net operating income—property earnings before financing and several company-level costs—rose 6.7% in the quarter and 7.2% over nine months. Acquisitions contribute to those increases. Strength was also not universal: The Mills’ occupancy fell to 98.9% from 99.4%, despite higher average rent.
A competitor offers useful context. Tanger’s third-quarter consolidated same-center property earnings rose from $95.8 million to $100.2 million, a calculated 4.6%. Tanger excludes acquired and other noncomparable centers from that measure. Its result supports the view that established retail properties can still obtain better rents; it does not establish a performance ranking against Simon’s broader portfolio measure.
Sources: Simon Form 10-Q, pp. 48 and 59; Tanger’s September 2026 Form 10-Q, “Portfolio Net Operating Income and Same Center Net Operating Income,” pp. 70–71. The companies’ property mixes and calculation scopes differ.
2. Investment losses and acquisition costs explain the weaker bottom line
The property improvement is real, but excluding investments produces a much stronger picture than Simon’s total earnings. The distinction matters because money committed to retail businesses and other investments still belongs to the company.
The quarter included a $120.0 million pretax loss from revaluing publicly traded shares held by a business Simon partly owns but does not control. A $30.0 million noncash tax benefit reduced that loss to $90.0 million after tax. The exchange feature on bonds linked to Klépierre shares added another $9.6 million loss. Together, these items reduced consolidated quarterly earnings by $99.6 million after tax, compared with a $2.2 million gain from the corresponding fair-value line a year earlier.
These were accounting revaluations rather than current-period operating cash payments. The $99.6 million is also a consolidated amount, before allocating earnings to outside owners; adding it directly to common-shareholder profit would mix ownership scopes.
Source: Form 10-Q, Notes 3 and 6, pp. 22 and 27; quarterly results discussion, p. 49; non-GAAP reconciliation, p. 58.
Taubman purchase accounting created a second distortion. Finalizing the acquisition valuation added $49.8 million of quarterly depreciation and amortization on consolidated properties. Elsewhere, it reduced amortization on joint-venture investments by $25.2 million. The net additional depreciation and amortization was therefore $24.6 million, not $49.8 million. Simon also recorded $1.9 million of additional lease income from the valuation of acquired leases.
These adjustments change how acquisition costs are spread through earnings. They do not show that the properties paid out an extra $49.8 million in cash during the quarter. Equally, the acquisition’s ongoing depreciation should not all be treated as a one-time expense.
Source: Form 10-Q, Note 4, p. 24; reconciliation footnote, p. 58. The $24.6 million is the net depreciation/amortization adjustment, not a complete after-tax adjustment to common-shareholder profit.
Real-estate companies use funds from operations, or FFO, to remove property depreciation and certain property transaction effects from profit. Simon then calculates “Real Estate FFO” by also removing other platform investments and specified investment gains and losses. These measures help isolate the property business, but neither measures cash left after construction spending.
Quarterly FFO fell 4.6%, while Real Estate FFO rose 5.1%. The gap was not solely the new equity-security loss. Over nine months, the other-platform contribution excluded from Real Estate FFO was a $116.7 million after-tax loss, versus a $30.9 million loss in 2025. This adjustment is separate from the fair-value losses removed on another line.
Catalyst Brands illustrates the operating exposure. Simon owns 31.3% directly and also owns part of SPARC Holdings, which itself holds a Catalyst stake. Simon’s share of Catalyst transition and restructuring losses was $19.7 million pretax over nine months. In the comparable 2025 period, Catalyst had generated a $71.6 million pretax gain for Simon, mainly when it removed Forever 21 from its consolidated accounts. That earlier accounting gain makes the year-over-year comparison harder, while current restructuring costs show that improvement still requires work.
Source: Form 10-Q, Note 6, p. 27; management’s discussion, p. 50; reconciliation, p. 58.
Not all investments weakened. Klépierre reported 3.9% like-for-like retailer-sales growth and 3.8% like-for-like net-rental-income growth over its first nine months. Simon’s filing, after converting Klépierre’s accounts to U.S. accounting rules, reported a larger share of its nine-month net income. This supports the European property business even as Simon’s exchangeable bonds caused separate accounting volatility.
Sources: Klépierre’s October 21, 2026 results, pp. 1–2; Simon Form 10-Q, Note 6, pp. 27–28. Klépierre’s operating indicators are used as business evidence, not as directly comparable U.S. GAAP profit or asset measures.
3. Cash generation funded construction, but distributions and buybacks used more
Simon’s operations covered consolidated property spending; they did not cover that spending plus all owner payments. Operating cash flow increased 5.7% to $3.10 billion over the first nine months, despite lower consolidated net income.
The main explanation is the larger amount of depreciation and amortization included in profit. These charges spread past spending over time and do not themselves require cash in the current period. The cash-flow statement added back $1.58 billion, compared with $1.10 billion in 2025. Simon also reversed investment revaluation effects and replaced joint ventures’ accounting earnings with the income distributions actually received.
Changes in tenant receivables—the amounts recognized but not yet collected—added $72.5 million to operating cash flow, versus $19.6 million a year earlier. Other balances offset that benefit. Changes in bills payable, accrued obligations and several related balances reduced operating cash flow by $307.7 million, whereas they had supplied $16.4 million in 2025. The filing groups these movements together without identifying a single payment cause.
Source: Form 10-Q, consolidated cash-flow statement, p. 7. Calculation notes B reproduces the reconciliation.
The following comparison tests what remained after cash paid for consolidated property investment. “Free cash flow” here means operating cash flow less the statement’s net capital-expenditure cash outflow. It excludes acquisitions, purchases of investments and separate funding of unconsolidated ventures.
| Consolidated cash allocation, US$ million | First nine months 2026 | First nine months 2025 |
|---|---|---|
| Operating cash inflow | 3,100.6 | 2,932.8 |
| Capital spending, shown as a positive use | 695.0 | 679.4 |
| Free cash flow, calculated | 2,405.7 | 2,253.4 |
| Cash dividends and distributions to all owners | 2,566.1 | 2,404.7 |
| Remainder after those distributions, calculated | -160.4 | -151.3 |
| Common-share program repurchases | 572.5 | 0.0 |
| Remainder after distributions and program repurchases | -733.0 | -151.3 |
Source: Form 10-Q, p. 7. Owner payments include stockholders, limited partners, preferred unitholders and outside property partners. Employee tax-withholding shares and cash redemptions of partnership units are additional financing uses, excluded from the program-repurchase row.
Investing outflow fell to $443.1 million from $1.24 billion, largely because Simon made no cash acquisition payments during the first nine months of 2026, compared with $961.1 million in 2025.
Capital distributions from unconsolidated entities and other investing receipts supplied $334.5 million, and net debt issuance supplied $295.5 million. Those funds helped meet the shortfall and other investment and financing needs. Consolidated cash nevertheless fell by $253.2 million to $569.9 million. The cash balance is much smaller than annual operating cash generation because Simon continually distributes, reinvests and refinances money.
Simon operates through a majority-owned property partnership whose outside investors hold units. The repurchase program reduced outstanding common shares, but the combined number of shares and partnership units moved differently. Third-quarter average common shares fell to 323.4 million from 326.5 million. Including outside partnership units, the average count rose to 379.1 million from 377.2 million, following the approximately 5.06 million units issued for Taubman in late 2025. Thus, buybacks helped common-share EPS while acquisition units limited growth in FFO per share: Real Estate FFO increased 5.1% in total but 4.7% per share.
Simon repurchased 2.90 million shares under its programs during the first nine months. They are treasury shares, not automatically retired shares. Stock awards and unit exchanges also affect the final share count. Expense for long-term incentive partnership awards and restricted stock totaled about $94.6 million, versus $58.5 million; $40.0 million of accelerated compensation was included in 2026 FFO. Repurchases are discretionary, giving management a cash use it can adjust if construction or refinancing requires more funding.
Sources: Form 10-Q, pp. 7–8; Notes 4, 5 and 8, pp. 23–25 and 34–38; FFO reconciliation, p. 58. Share and unit counts are period averages where stated. The compensation total adds the two disclosed expense categories, net of capitalized amounts. The full reported-profit-to-FFO reconciliation appears in Calculation notes A.
4. Available credit protects liquidity, while refinancing raises the cost of debt
Simon has substantial financing capacity, but replacing older loans is already taking more of its property earnings. Consolidated debt was almost unchanged from year-end at $28.42 billion. Nine-month interest expense nevertheless rose $141.9 million to $844.4 million.
Acquisition activity explained $116.1 million of that increase. New borrowing, debt repayments and changing rates also affected the result. At September 30, the effective consolidated borrowing rate was 4.07%, compared with 3.87% at December 31, 2025. Approximately 95.5% of consolidated debt was fixed after considering interest-rate contracts, so most rate changes reach earnings when debt is refinanced rather than immediately.
Source: Form 10-Q, management’s discussion, pp. 50–54. The September 2025 comparator was 3.73%; it is distinct from the December 2025 rate. Source: September 2025 Form 10-Q, p. 50.
September’s financing shows the tradeoff. Simon issued $400 million at 5.25%, due in 2032, and $400 million at 5.65%, due in 2036. Management intended the proceeds to fund all or part of a $750 million bond carrying 3.25% and maturing November 30, 2026, along with general corporate purposes.
The new bonds extend the funding period, but require $43.6 million of annual contractual interest. The old bond requires $24.4 million. That $19.2 million difference includes interest on an extra $50 million of borrowing. On an equal $750 million principal amount, the rate difference alone would add $16.5 million annually. These are coupon calculations, not a forecast of reported interest expense, which also reflects timing, fees and other financing.
Source: Form 10-Q, Note 7 and financing discussion, pp. 32 and 53. Calculations use the stated principal and fixed coupon rates.
| Consolidated contractual payments, US$ million | Remainder of 2026 | 2027–2028 | 2029–2030 | After 2030 |
|---|---|---|---|---|
| Debt principal | 2,030.2 | 5,498.8 | 5,435.0 | 15,681.2 |
| Interest payments | 282.6 | 2,024.3 | 1,613.2 | 5,227.2 |
Source: Form 10-Q, “Contractual Obligations,” p. 54. Principal excludes discounts and issuance costs. Variable interest uses September 30 rates; the schedule includes applicable extension assumptions and is a September 30 snapshot.
Joint-venture borrowing makes the broader funding workload larger. Simon’s supplemental schedule puts its economic share of debt, including ventures and excluding other owners’ shares of consolidated debt, at $35.35 billion. On that scope, $4.65 billion falls due in 2027, including $1.03 billion at unconsolidated ventures. These venture debts generally have claims on the properties rather than Simon itself, but refinancing difficulty can reduce distributions or require additional investment. Simon also guarantees some venture borrowing. Note 10 identifies $128.4 million of additional mortgage guarantees, beyond the guarantee referenced in Note 6.
Sources: Third-quarter supplemental information, pp. 27–28; Form 10-Q, Note 10, p. 40, and off-balance-sheet arrangements, p. 54. Economic-share debt is a supplemental measure, not consolidated balance-sheet debt.
Banks had committed $7.7 billion of unused revolving credit, which Simon can draw as needed. This availability already accounts for outstanding short-term notes, known as commercial paper. Management’s approximately $9.0 billion liquidity total combines that borrowing capacity with cash, including Simon’s share of joint-venture cash.
Simon met the financial limits in its borrowing agreements, known as covenants. One senior-note test compares earnings available for fixed financing charges with those charges: Simon’s coverage was 4.6 times against a required level above 1.5 times. That provides room to manage refinancing, although obtaining new debt at acceptable rates remains important to earnings.
Sources: Form 10-Q, pp. 51–54; supplemental information, pp. 3 and 13. Covenant measures use contractual definitions, not simple ratios of GAAP balance-sheet amounts.
5. The smaller balance sheet reflects depreciation, investment changes and distributions
Lower reported assets and equity do not mean Simon reduced its financing debt materially. Total assets fell $1.53 billion from December 31, while consolidated debt fell only $6.3 million. Understanding the assets explains why those movements differ.
| Consolidated financial position, US$ million | September 30, 2026 | December 31, 2025 |
|---|---|---|
| Investment properties, after accumulated depreciation | 29,433.6 | 30,244.6 |
| Cash and cash equivalents | 569.9 | 823.1 |
| Tenant receivables and accrued revenue, net | 899.6 | 934.1 |
| Other unconsolidated investments | 3,980.1 | 4,362.3 |
| Klépierre investment | 1,335.1 | 1,505.4 |
| Deferred costs and other assets | 2,131.6 | 1,981.0 |
| Total assets | 39,075.1 | 40,606.5 |
| Financing debt | 28,423.9 | 28,430.2 |
| Total equity, including outside owners | 5,139.8 | 6,472.1 |
Source: Form 10-Q, consolidated balance sheet, p. 5. Selected lines are shown; the full balance-sheet equation is reconciled in Calculation notes C.
The net property balance fell $811.0 million even though Simon continued building. Gross property cost increased $317.1 million, while accumulated depreciation increased $1.13 billion. Taubman’s final purchase-price allocation also moved a net $83.3 million out of investment property, with offsetting changes to lease-related assets and liabilities. This valuation change shifted previously incurred acquisition costs into lease-related accounts. It helps explain the increase in deferred costs and other assets without requiring an equivalent new cash payment.
The Klépierre investment also declined partly because Simon delivered 4.07 million Klépierre shares to settle exchangeable bonds. It recognized a $64.3 million noncash gain on that exchange. The other-investment balance fell $382.2 million. Losses and cash distributions reduce these balances, while contributions add to them; acquisition accounting also changed the recorded amounts. The balance alone therefore does not measure the investments’ operating performance. Merchandise inventory is not a separate material line in these consolidated landlord accounts; retail-company exposure is mainly through investments accounted for separately.
Source: Form 10-Q, p. 5; Notes 2, 4 and 6, pp. 16, 23–24 and 26–30.
Tenant balances require a different distinction. Total receivables fell, but the portion created by spreading rent evenly over a lease’s life increased from $565.5 million to $610.5 million. Such rent is recognized before its contractual cash collection date. It is not automatically overdue. If a tenant’s payments cease to be probable of collection, Simon writes off the relevant receivable against lease income and switches to recognizing cash received.
Source: Form 10-Q, Note 9, pp. 38–39.
Operating liabilities also differ from borrowing. The $1.79 billion balance described as distributions and losses in unconsolidated entities largely reflects ventures where accumulated distributions and accounting losses exceed the investment balance. It is not another ordinary bond maturity. Meanwhile, other liabilities fell $276.8 million; the exchangeable-bond option liability alone fell from $205.1 million to $9.5 million as conversions reduced the outstanding exposure.
Simon also leases land and office space. Its $725.0 million lease liability represents the discounted value of $1.75 billion in remaining minimum payments, much of it far in the future. Minimum payments are $52.4 million in 2027. These obligations belong alongside debt when assessing cash needs, without treating their long payment schedule as immediately payable borrowing.
Source: Form 10-Q, Notes 2, 3 and 10, pp. 16, 22 and 39–40.
Equity fell mainly because distributions exceeded reported earnings and Simon repurchased shares. Common and preferred stockholders’ equity declined $1.12 billion to $4.09 billion; outside owners’ equity fell a further $209.1 million. The growing accumulated deficit records past distributions and other charges exceeding accounting income. For a landlord with large depreciation charges, that balance is different from a current cash loss. Nonetheless, distributions and buybacks leave less capital inside the business, as the cash reconciliation demonstrates.
Source: Form 10-Q, consolidated equity statement, p. 8. Calculation notes C reconciles paid-in capital, accumulated deficit, treasury shares and other comprehensive income.
6. Redevelopment and new revenue sources support growth, with execution still important
Simon is directing capital toward stronger shopping destinations, but each project must earn enough to cover its construction and financing costs. Management’s stated approach is to replace or add tenants, expand productive locations and selectively acquire high-quality assets. Restaurants, entertainment, larger stores and mixed-use additions can give visitors more reasons to come and retailers more reasons to rent space.
Of the $695.0 million of consolidated capital spending during the first nine months, management classified $318.0 million as redevelopment and expansion, $42.0 million as development and other costs, and $335.0 million as tenant costs and other operating capital spending. The largest categories therefore supported both changes to properties and the spending needed to house tenants and keep sites operating.
Simon’s share of projects under construction was approximately $1.2 billion. Management estimated $342.0 million of remaining net cash funding during the rest of 2026 and 2027, to be supplied by operating cash flow. Its targeted stabilized return on invested capital was 8%–10%. That is a target for the projects after occupancy and operations settle, rather than an achieved result. Successful leasing and cost control determine whether the projects reach it.
Source: Form 10-Q, cash allocation and development discussion, pp. 51 and 55–56. The remaining-funding estimate covers the specified construction pipeline, not all future capital spending or acquisitions.
Simon is also selling advertisers access to shoppers. Its August launch of Simon Media Network brought together mall displays, events and digital channels. The purpose is to earn additional revenue from audiences already visiting its destinations. Simon Media and Experiences contributed a $45.3 million year-over-year increase in the other-income category over nine months. That supports the commercial opportunity, although the filing does not isolate the activity’s profit after its own costs, and the increase cannot all be attributed to a network launched in August.
Sources: Simon’s August 27, 2026 Media Network announcement; Form 10-Q, p. 50.
After quarter-end, Simon agreed to acquire University Village, a nearly 600,000-square-foot open-air shopping destination in Seattle. The October 30 announcement describes a focus on distinctive properties in strong markets and expects completion in the fourth quarter, subject to closing conditions. It does not disclose the price or financing, so this acquisition cannot be included in the construction-funding estimate or assigned an earnings contribution here.
Source: Simon’s October 30, 2026 University Village announcement, transaction description and expected closing. This is an announced transaction, not a verified completed acquisition.
The main operating risk remains the health of the retailers that fill the buildings. Large anchors can attract customers even when they contribute little rent or own their premises. An anchor closure may therefore hurt neighboring stores and force Simon to spend on replacement space. High reported occupancy and improving new-lease economics are the strongest current evidence against a broad deterioration, while weaker platform-investment results show why retailer exposure still deserves attention.
The filing describes ordinary-course commercial, environmental and transaction-related legal proceedings. Management does not expect a material adverse effect, but it provides no quantified reasonably possible loss range for those proceedings. It does not establish a quantified liability beyond the amounts already recorded. Tenant failures, construction execution and refinancing have more directly measurable effects in this reporting period.
Source: Form 10-Q, Notes 9–10, pp. 39–40; legal proceedings and risk factors, p. 62.
On November 5, management raised its full-year Real Estate FFO forecast to $13.30–$13.40 per share, from $13.20–$13.30. At the same time, the forecast for reported diluted EPS fell to $6.32–$6.42 from $6.47–$6.57. The split is consistent with improving property earnings and weaker investment-related results. The forecast reconciliation carries specified investment adjustments at their nine-month actual amounts; it does not forecast those items for the fourth quarter. The board also declared a $2.30 quarterly common dividend payable December 31, a future cash payment outside the nine-month cash table.
Source: Third-quarter supplemental information, November 5, 2026, pp. 3–4 and 43. Forecasts are management estimates, not reported full-year results.
7. The business can keep expanding, but retaining more cash would strengthen its flexibility
Simon’s core property business is progressing, while its broader capital commitments limit how much of that progress becomes retained cash. Leased space, stronger new-lease terms and rising property earnings support continued investment in existing destinations. Available credit gives management time to refinance and complete construction.
The decisive issue is how much additional property income remains after higher interest costs, retailer-investment losses and owner payments. Better results at Catalyst and other platform investments would allow more of the property improvement to reach total earnings. Successful redevelopment would add another source of rent. Conversely, more expensive refinancing or tenant closures requiring replacement spending would tighten the cash available for acquisitions and repurchases. The present evidence supports continued operating growth with active funding management, rather than an expansion program financed entirely by retained operating cash.
Reporting basis and calculation notes
Reporting basis: Simon Property Group, Inc., CIK 0001063761; Form 10-Q for the quarter ended September 30, 2026; filed November 6, 2026; accession 0001104659-26-123591. Financial statements are Simon’s consolidated U.S. GAAP accounts, including its controlled Operating Partnership, rather than parent-only accounts or a sum of the two registrants. Simon owned approximately 85.3% of the partnership at September 30. Quarterly comparisons cover July–September; cumulative comparisons cover January–September. Balance-sheet comparisons use December 31, 2025.
Sources: SEC submission record; original Form 10-Q, cover, explanatory note and Notes 1–2; SEC company facts. Selected asset, liability, equity, cash, revenue and operating-cash-flow facts were cross-checked using this accession, U.S. dollar units and the actual start/end dates. Fiscal-period labels alone were not used to distinguish quarterly from cumulative facts.
Reporting basis: The research cutoff is November 12, 2026, New York date. Sources include Simon’s November 5 results and November 6 filing, its October 30 acquisition announcement, and the specifically dated historical, competitor and investee sources cited above. This is not a claim that every development through November 12 was independently confirmed.
Calculation notes A — Reconciling reported profit to property-focused earnings. Amounts below are US$ million. Positive adjustments add to the preceding subtotal; negative adjustments subtract. FFO includes the Operating Partnership’s outside common unitholders, while excluding specified property-partner and preferred interests.
| Earnings reconciliation, US$ million | Third quarter 2026 | Third quarter 2025 | First nine months 2026 | First nine months 2025 |
|---|---|---|---|---|
| Reported consolidated net income | 565.294 | 702.696 | 1,707.959 | 1,824.237 |
| Add property depreciation and amortization, net of outside owners’ shares | 597.362 | 537.602 | 1,816.964 | 1,601.293 |
| Remove property gains and make remaining ownership/preferred adjustments | 8.983 | -12.755 | -60.695 | -4.137 |
| FFO of the Operating Partnership | 1,171.639 | 1,227.543 | 3,464.228 | 3,421.393 |
| Remove equity disposal/exchange/revaluation losses or gains, after tax | 6.534 | 6.654 | 21.669 | -53.727 |
| Remove other-platform results, after tax | -1.025 | -16.707 | 116.732 | 30.884 |
| Remove unrealized equity/derivative losses or gains, after tax | 99.571 | -2.243 | 130.607 | 84.977 |
| Real Estate FFO | 1,276.719 | 1,215.247 | 3,733.236 | 3,483.527 |
Calculation notes: The net depreciation row adds consolidated property depreciation and Simon’s share of venture depreciation, then subtracts other owners’ share: for the latest quarter, $506.543 million + $122.610 million − $31.791 million = $597.362 million. The next row combines removal of property gains, property-partner earnings allocations and preferred distributions: −$10.701 million + $20.716 million − $1.032 million = $8.983 million. The same categories are combined for each comparison period; the original reconciliation reports each component separately.
Calculation notes: Real Estate FFO still includes financing costs and $8.3 million of the first-quarter accelerated stock-compensation expense. It removes both favorable and unfavorable investment results. It is not an estimate of recurring GAAP profit or cash available after construction.
Source: Form 10-Q, pp. 57–58, including reconciliation footnotes.
Calculation notes B — Reconciling profit to cash and cash to the closing balance. All amounts are US$ million for the first nine months. The depreciation/amortization row follows the cash-flow statement, whose scope differs from the property-only FFO adjustment.
| Operating-cash reconciliation, US$ million | 2026 | 2025 |
|---|---|---|
| Consolidated net income | 1,707.959 | 1,824.237 |
| Add depreciation and amortization | 1,575.806 | 1,098.029 |
| Reverse property gains, equity transaction effects and unrealized investment losses, net | 120.896 | 12.547 |
| Remove rent recognized before contractual collection under straight-line accounting | -39.419 | -17.786 |
| Replace venture accounting income with income distributions received, net | 80.638 | 27.496 |
| Change in tenant receivables and accrued revenue | 72.531 | 19.642 |
| Change in deferred costs and other assets | -110.102 | -47.789 |
| Change in payables, accrued expenses, intangibles, deferred revenue and other | -307.691 | 16.434 |
| Operating cash flow | 3,100.618 | 2,932.810 |
Calculation notes: To reverse investment effects in 2026, the calculation removes $66.294 million of property-related gains, restores $26.588 million of equity-transaction losses, and restores $160.602 million of unrealized investment losses. For 2025, it removes $0.794 million of property-related gains and $71.636 million of equity-transaction gains, then restores $84.977 million of unrealized losses. The venture cash replacement is $331.509 million of income distributions less $250.871 million of recognized income in 2026, and $324.646 million less $297.150 million in 2025. Capital distributions are classified separately in investing activities.
Calculation notes: In 2026, opening cash of $823.147 million + operating inflow of $3,100.618 million − investing outflow of $443.116 million − financing outflow of $2,910.708 million = closing cash of $569.941 million. In 2025, $1,400.345 million + $2,932.810 million − $1,238.697 million − $1,541.881 million = $1,552.577 million. The statement reconciles cash and cash equivalents; it does not present a separate restricted-cash component. Neither balance includes all joint-venture cash used in management’s broader liquidity measure.
Calculation notes: The 2026 distribution total is $2,172.492 million to stockholders + $375.105 million to limited partners + $0.593 million of partnership preferred distributions + $17.893 million to outside property owners = $2,566.083 million. For 2025, cash payments were $2,075.359 million to stockholders, $322.777 million to limited partners, $0.874 million to partnership preferred holders and $5.701 million to outside property owners, totaling $2,404.711 million. These are cash payments, not dividend declarations.
Source: Form 10-Q, p. 7.
Calculation notes C — Checking the balance sheet and equity. Redeemable outside ownership is presented between liabilities and permanent equity. Including it is necessary to reconcile the accounts: at September 30, assets of $39,075.130 million = liabilities of $33,666.361 million + redeemable interests of $268.936 million + permanent equity of $5,139.833 million. At December 31, assets of $40,606.466 million = liabilities of $33,901.073 million + redeemable interests of $233.306 million + permanent equity of $6,472.087 million.
| Stockholders’ equity changes, US$ million | December 31, 2025 | Nine-month change | September 30, 2026 |
|---|---|---|---|
| Preferred stock | 40.451 | -0.246 | 40.205 |
| Common stock at par | 0.033 | 0.000 | 0.033 |
| Capital paid in above par | 12,347.192 | 98.068 | 12,445.260 |
| Accumulated deficit | -4,608.136 | -744.826 | -5,352.962 |
| Accumulated other comprehensive loss | -251.361 | 83.322 | -168.039 |
| Treasury shares, recorded as a deduction | -2,319.911 | -559.436 | -2,879.347 |
| Total stockholders’ equity | 5,208.268 | -1,123.118 | 4,085.150 |
Calculation notes: The deficit movement equals $1,464.170 million of income credited in the equity statement − $2,172.492 million of distributions − $36.504 million in unit-equivalent and other entries. The income credit includes preferred-share income before its distributions; it differs from common-shareholder net income.
Calculation notes: Treasury shares are shares Simon has bought back and holds. Their recorded cost increased by $572.524 million of program purchases and $16.133 million of other purchase entries, partly offset by $29.221 million of shares released for incentive awards. These are the equity statement’s entries; the cash-flow statement separately reports $16.132 million paid for employee tax-withholding shares.
Calculation notes: Paid-in capital can change when ownership shifts, even without new cash raised. Changes in partnership ownership transferred $145.592 million into Simon’s paid-in capital from outside partners’ equity. Stock awards, unit redemptions, exchanges and other entries reduced that increase by a net $47.524 million, leaving the reported $98.068 million increase.
Calculation notes: Currency and hedge movements mainly explain the $83.322 million improvement in accumulated other comprehensive income. These gains are recorded in a separate part of equity rather than current net income. Outside owners’ equity declined $209.136 million; adding that to the $1,123.118 million stockholders’ decline gives the $1,332.254 million reduction in total permanent equity.
Source: Form 10-Q, pp. 5 and 8; Note 3, pp. 18–22.
Calculation notes D — Growth and margins. Growth is the current comparable-period amount divided by the prior amount, minus one. For example, quarterly revenue growth is $1,814.556 million ÷ $1,601.572 million − 1 = 13.3%; common-shareholder profit growth is $498.959 million ÷ $606.174 million − 1 = −17.7%. Quarterly operating margins are $804.450 million ÷ $1,814.556 million = 44.3% and $812.914 million ÷ $1,601.572 million = 50.8%, a decline of 6.4 percentage points using unrounded inputs. Rounding may prevent displayed subtotals from adding exactly.
Source: Form 10-Q, p. 6.
This analysis is for general information and is not investment advice.