Latest news with #SimonPropertyGroup
Fashion United
9 hours ago
- Business
- Fashion United
Simon Property Group promotes Eli Simon to COO
The Simon Property Group, a real estate investment trust that owns premier shopping, dining, entertainment, and mixed-use destinations across North America, Europe, and Asia, has promoted Eli Simon to chief operating officer. Eli Simon will work directly with David Simon, chairman, chief executive officer and president, on all aspects of Simon's businesses, including property performance, new development projects, the company's strategic investments, and its brand strategy. He joined the company in 2019, leading the company's investment strategy for both real estate and non-real estate investments, including new business sourcing, strategic corporate investments, and the execution of various real estate transactions. Most recently, he was executive vice president, chief investment officer and director. Before joining the company, he was the principal and head of North American Lodging at Och-Ziff Capital Management and Och-Ziff Real Estate, where he oversaw all lodging-related investments, including asset and portfolio acquisitions, operating company investments, and lending opportunities. In addition, Simon Property Group also announced that Jonathan Murphy and Eric Sadi have been named co-presidents of North American Real Estate. They will both oversee Simon's North American real estate portfolio and all three of our platforms, Malls, Mills and Premium Outlets, and will be responsible for asset management and leasing strategies. Murphy and Sadi, respectively, joined the American property company in 2010 and 2006, and have served in various capacities throughout their tenures. Since 2020, they have been co-presidents of Simon's Mall Platform, overseeing the revenue stream, occupancy, and merchandise mix for the company's malls. David Simon said in a statement: "One of the hallmarks of Simon's success is the strength and depth of our management team. As we work to further advance our growth, I am pleased with these leadership appointments. Our culture of innovation will continue to be a strategic asset for us." Larry Glasscock, lead independent director, added: "These executive appointments position Simon to continue to deliver long-standing industry-leading results by delivering an exceptional product and environment for our consumers and retailers."
Yahoo
4 days ago
- Business
- Yahoo
Simon Property Group Elevates Eli Simon to Chief Operating Officer
The Simon Property Group has promoted Eli Simon, executive vice president, chief investment officer and director, to chief operating officer. Eli will work directly with David Simon, chairman, chief executive officer and president, who is also Eli's father, on all aspects of the business, including property performance, new development projects, the company's strategic investments, and brand strategy. More from WWD Simon Property Group Transcends Macro Uncertainties With 'Robust' Q2 Report Simon Acquires Brickell City Centre Retail in Miami Mall Giant David Simon Says Leasing Demand 'Is Still Strong' The promotion, revealed Thursday, puts the 37-year-old Eli Simon squarely in line as the potential successor to his 63-year-old father, who has been undergoing treatment for cancer for several months. Asked if Eli's promotion represents succession, Simon Property Group provided WWD with a statement that read: 'The board made this appointment. The board is always focused on succession planning and evaluating the talent available and roles to be filled.' The position of chief operating officer has been vacant since Richard S. Sokolov moved up to his current role as vice chairman in 2019. Eli Simon joined the company in 2019, leading the company's investment strategy for both real estate and non-real estate investments, including new business sourcing, strategic corporate investments, and the execution of various real estate transactions. Before joining the company, he was the principal and head of North American Lodging at Och-Ziff Capital Management and Och-Ziff Real Estate, where he oversaw all lodging related investments, including asset and portfolio acquisitions, operating company investments, and lending opportunities. Simon also said that Jonathan Murphy and Eric Sadi have been named copresidents, North American Real Estate. They will oversee Simon's North American real estate portfolio and all three of the company's platforms — Malls, Mills and Premium Outlets. They will also be responsible for asset management and leasing strategies. Murphy and Sadi, respectively, joined the Indianapolis-based company in 2010 and 2006, and have served in various capacities throughout their tenures. Since 2020 they have been copresidents of Simon's Mall Platform, overseeing the revenue stream, occupancy, and merchandise mix for the company's malls. 'One of the hallmarks of Simon's success is the strength and depth of our management team,' David Simon said in a statement. 'As we work to further advance our growth, I am pleased with these leadership appointments. Our culture of innovation will continue to be a strategic asset for us.' Larry Glasscock, lead independent director, said in his statement, 'These executive appointments position Simon to continue to deliver long-standing industry-leading results by delivering an exceptional product and environment for our consumers and retailers.' This week, Simon, a real estate investment trust, posted a solid second-quarter financial report, with David Simon characterizing business as remaining 'robust' and the demand for retail space as 'unabated.' 'There's a lot of geopolitical stuff going on, obviously, and a lot of domestic political stuff going on. Tariffs swing back and forth. There's interest rate uncertainty. You name it. However, you have unbelievable stores that are able to manage that, and retail demand is really unabated,' said CEO Simon during Monday's conference call with investors and industry analysts. 'The physical shopping environment continues to be the place to be…So we're quite bullish about what we've done, what we are doing, and where we are going, despite all the headlines that are out there.' Among Simon's most major properties are the Roosevelt Field mall in Garden City, N.Y.; King of Prussia mall in Pennsylvania; Sawgrass Mills in Sunrise, Fla., and Woodbury Common Premium Outlets in Central Valley, N.Y. Second-quarter net income attributable to common stockholders was $556.1 million, or $1.70 per diluted share, compared to $493.5 million, or $1.51 per diluted share, in 2024. Industry analysts expected $1.55 a share. Real estate funds from operations (FFO) were $1.15 billion, or $3.05 per diluted share, as compared to $1.1 billion, or $2.93 per diluted share, in the prior year, an increase of 4.1 percent. Occupancy as of June 30 was 96 percent, a 0.4 percent gain compared to 95.6 percent on June 30, of WWD In Commercial Real Estate, Experience Matters Striving for Retail of a Different Ilk in Boston's Seaport Box Equities Forms Joint Venture With Artemis
Yahoo
5 days ago
- Business
- Yahoo
Simon Property Group Transcends Macro Uncertainties With ‘Robust' Q2 Report
The world is full of uncertainties, yet business remains 'robust' and the demand for retail space stays 'unabated' at the Simon Property Group. That assessment came from David Simon, chairman, president and chief executive officer of the Indianapolis-based Simon Property Group, which on Monday reported second-quarter gains across the board and exceeded expectations. More from WWD Simon Acquires Brickell City Centre Retail in Miami Mall Giant David Simon Says Leasing Demand 'Is Still Strong' Simon Launches New Data Capabilities Net income attributable to common stockholders was $556.1 million, or $1.70 per diluted share, compared to $493.5 million, or $1.51 per diluted share, in 2024. Industry analysts expected $1.55 a share. Real estate funds from operations were $1.15 billion, or $3.05 per diluted share, as compared to $1.1 billion, or $2.93 per diluted share, in the prior year, an increase of 4.1 percent. Occupancy as of June 30 was 96 percent, a 0.4 percent gain compared to 95.6 percent on June 30, 2024. 'There's a lot of geopolitical stuff going on, obviously, and a lot of domestic political stuff going on. Tariffs swing back and forth. There's interest rate uncertainty. You name it. However, you have unbelievable stores that are able to manage that, and retail demand is really unabated,' Simon said during Monday's conference call with investors and industry analysts. 'The physical shopping environment continues to be the place to be.…So we're quite bullish about what we've done, what we are doing, and where we are going, despite all the headlines that are out there.' In other good news for investors, Simon's board of directors declared a quarterly common stock dividend of $2.15 for the third quarter of 2025, representing an increase of $0.10, or 4.9 percent year-over-year. The dividend will be payable Sept. 30 to shareholders of record on Sept. 9, 2025. The company is slightly upping its outlook for real estate FFO, to $12.45 to $12.65 a diluted share for 2025 from the previous forecast of $12.40 to $12.65 a diluted share. During the call, Simon said he 'kind of chuckles' when he reads about companies restructuring, saying they're going to lease their properties better, manage their balance sheets better, bring in new management. 'You've never read about a Simon Property Group restructuring. Yes, we had to do certain drastic things to deal with COVID and to deal with the great financial crisis [of 2008-2009], but there's been no restructuring in this company — only things that have benefited shareholders. 'This company doesn't need to sell a bunch of assets, doesn't need to bring in a new management team, it doesn't need to downsize its platform. It doesn't need to do it because it's outperformed over a 30-plus-year period that no one else has done.' On June 27, the company acquired its partners' interest in the retail and parking facilities at Brickell City Centre in Miami. Simon now wholly owns and manages the asset. 'A couple of more things will get announced this year, and they'll be accretive,' Simon said, without specifying. 'They will add to our platform and we'll be able to manage them better so we'll be able to grow our cash flow.' Asked by one analyst how 'mom and pop' stores are performing amid all the macro uncertainties and the tariff situation, Simon said, 'Last quarter, I did express my concern about that segment given how tariffs might affect them and their cost of goods. But they're beating their plans so far this year. So it's all systems go there. I'm sure there's trepidation, but I think they're managing as best they can. The full story, obviously, given the volatility has not been written.' Another analyst suggested the possibility of an impending wave of major mall transactions. But Simon said, 'I'm not sure about whether there's going to be the huge mall transactions. I think you'll have other players come in buying maybe not necessarily 'A' properties, but a lot of 'Bs' because the reality is you can create a nice arbitrage and manage them or lease them and improve them. They are a lot stickier than people believe…despite the media and the naysayers — and that's not to say there hasn't been a significant amount of obsolescence — most of them are here today, still fighting a pretty good battle.' Simon summed up the second-quarter performance, stating: 'We delivered robust financial and operational results yet again for the second quarter. Occupancy gains, increased shopper traffic and higher retail sales volumes contributed to strong cash flow growth. We continue to enhance our real estate platforms through development, redevelopment and acquisitions, including the purchase of our partners' interest in Brickell City Centre, a premier mixed-use property in Miami and its rapidly growing central business district.' In other second-quarter statistics, Simon reported that base minimum rent per square foot was $58.70 as of June 30, compared to $57.94 as of June 30, 2024, an increase of 1.3 percent. Also, reported retailer sales per square foot were $736 for the trailing 12 months ended June 30. Reported retailer sales per square foot were $741 for the trailing 12 months ended June 30, 2024. While Simon reported traffic being up 1.5 percent, the slight drop in sales per square foot was attributed to assets that are on the northern and southern borders of the nation. Best of WWD In Commercial Real Estate, Experience Matters Striving for Retail of a Different Ilk in Boston's Seaport Box Equities Forms Joint Venture With Artemis Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Simon Property Q2 FFO Beats Estimates on Higher Revenues & Occupancy
Simon Property Group, Inc.'s SPG second-quarter 2025 real estate funds from operations (FFO) per share of $3.05 surpassed the Zacks Consensus Estimate of $3.04. This compares favorably with the real estate FFO of $2.93 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 raised its guidance for 2025 real estate FFO per share at the midpoint. Simon Property generated revenues of $1.50 billion in the quarter, which missed the Zacks Consensus Estimate of $1.51 billion. However, the reported figure increased 2.8% year over year. According to David Simon, the chairman, CEO and president of Simon Property Group, "We delivered another successful quarter, driven by the quality of our portfolio and disciplined execution.' He further added, 'Our strategic investments and A-rated balance sheet position us for sustained long-term cash flow growth. Today, we are raising our dividend and increasing the mid-point of our full-year 2025 Real Estate FFO guidance.' SPG's Second Quarter in Detail SPG reported revenues from lease income of $1.38 billion, 4.8% higher than the prior-year period's figure. Our estimate was pegged at $1.36 billion. As of June 30, 2025, the occupancy for the U.S. Malls and Premium Outlets portfolio came in at 96%, up 40 basis points from 95.6% as of June 30, 2024. We projected the metric to be 95.7%. The base minimum rent per square foot for the U.S. Malls and Premium Outlets portfolio was $58.70 as of June 30, 2025, rising from $57.94 as of June 30, 2024. This reflected an increase of 1.3%. Domestic property net operating income (NOI) increased 4.2% year over year, and portfolio NOI rose 4.7%. SPG's Portfolio Activity In June 2025, Simon Property acquired its partner's stake in the retail and parking facilities at Brickell City Centre in Miami, FL. The company now wholly owns the asset. Balance Sheet Position of SPG Simon Property exited the second quarter of 2025 with $9.2 billion of liquidity. This comprised $1.8 billion of cash on hand, including its share of joint venture cash and $7.4 billion of available capacity under the company's revolving credit facilities. SPG's Outlook for 2025 Simon Property has narrowed its outlook for 2025 real estate FFO per share. The company now expects the same to be between $12.45 and $12.65 from the earlier guided range of $12.40-12.65, raising the midpoint to $12.55. The Zacks Consensus Estimate of $12.45 lies at the lower end of the range. SPG's Dividend Update Concurrent with its second-quarter earnings release, Simon Property announced a quarterly common stock dividend of $2.15 for the third quarter of 2025. This marks an increase of 4.9% year over year. The dividend will be paid out on Sept. 30 to shareholders of record as of Sept. 9, 2025. SPG's Zacks Rank Currently, SPG carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Simon Property Group, Inc. Price and EPS Surprise Simon Property Group, Inc. price-eps-surprise | Simon Property Group, Inc. Quote Performance of Other Retail REITs Regency Centers Corporation REG reported second-quarter 2025 NAREIT FFO per share of $1.16, outpacing the Zacks Consensus Estimate of $1.12. The figure increased 9.4% from the prior-year quarter. REG's results reflected healthy leasing activity. During the quarter, same-property and base rents improved year over year. Kimco Realty Corp. KIM reported second-quarter 2025 FFO per share of 44 cents, beating the Zacks Consensus Estimate of 43 cents. The metric rose 7.3% from the year-ago quarter. Results reflected higher same-property NOI due to a rise in minimum rents. However, lower occupancy owing to tenant bankruptcies and higher interest expenses acted as dampeners. Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Simon Property Group, Inc. (SPG) : Free Stock Analysis Report Kimco Realty Corporation (KIM) : Free Stock Analysis Report Regency Centers Corporation (REG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
6 days ago
- Business
- Yahoo
Simon Property Group Inc (SPG) Q2 2025 Earnings Call Highlights: Strong Leasing Activity and ...
Real Estate FFO: $3.05 per share in Q2 2025, up 4.1% from $2.93 in the prior year. Domestic Property NOI: Increased 4.2% year over year for the quarter. Portfolio NOI: Grew 4.7% for the quarter, including international properties at constant currency. Leasing Activity: Approximately 1,000 leases signed for more than 3.6 million square feet in the quarter. Malls and Premium Outlets Occupancy: 96.0% at the end of Q2, up 40 basis points year over year. The Mills Occupancy: Record 99.3%, up 110 basis points from the prior year. Average Base Minimum Rent: Increased 1.3% year over year for Malls and Outlets; 0.6% for the Mills. Sales per Square Foot: $736 for Malls and Premium Outlets in the quarter. Funds from Operations: $1.19 billion or $3.15 per share, up 8.6% from $1.09 billion or $2.90 per share last year. Dividend: $2.15 per share for Q3, a 4.9% increase year over year. Full-Year 2025 FFO Guidance: Increased to $12.45 to $12.65 per share. Liquidity: Over $9 billion at the end of the quarter. Warning! GuruFocus has detected 6 Warning Signs with SPG. Release Date: August 04, 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) reported a 4.1% growth in real estate funds from operations (FFO) per share, reaching $3.05 compared to $2.93 in the prior year. The company achieved a 96.0% occupancy rate for Malls and Premium Outlets, with The Mills reaching a record 99.3% occupancy. SPG signed approximately 1,000 leases for more than 3.6 million square feet in the quarter, with 30% of leasing activity being new deals. The acquisition of Brickell City Centre in Miami is expected to be accretive, enhancing operations with SPG's leasing and management expertise. SPG increased its dividend to $2.15 per share for the third quarter, marking a year-over-year increase of 4.9%. Negative Points Higher interest expenses and lower interest income resulted in a $0.07 drag on year-over-year growth. Retailer bankruptcies affected approximately 1.8 million square feet of space, posing challenges to occupancy rates. Average base minimum rent for Malls and Outlets only increased by 1.3% year over year, indicating limited rental growth. The company faces ongoing geopolitical and domestic political uncertainties, impacting overall business sentiment. SPG's international properties are not performing at their highest level due to restricted cross-border shopping and flatlining international tourism. Q & A Highlights Q: Can you describe the current leasing velocity and demand given the uncertain environment? A: David Simon, Chairman and CEO, stated that despite global and domestic uncertainties, retail demand remains strong and the physical shopping environment is thriving. Simon Property Group has maintained a consistent track record without restructuring, focusing on operational excellence and shareholder benefits. Q: Are you seeing strong demand from smaller tenants, such as mom-and-pop stores, in addition to national retailers? A: David Simon noted that smaller tenants are performing well, beating their plans for the year despite initial concerns about tariffs affecting their costs. Demand remains strong across the board, and the company is optimistic about this segment. Q: What is the upside potential for the Brickell City Centre acquisition, and are there other acquisition opportunities? A: David Simon highlighted Brickell City Centre as a valuable asset with long-term growth potential due to its location in Miami's Central Business District. The company is exploring other acquisition opportunities that align with their strategic goals and will be accretive to their platform. Q: How do you view the potential for a wave of mall transactions, and what are your criteria for acquisitions versus internal investments? A: David Simon explained that Simon Property Group evaluates acquisitions based on product and price sensitivity, focusing on creating net asset value. While there may be more mall trades, the company remains selective and prioritizes opportunities that enhance their platform and relationships with retailers. Q: Can you quantify the increase in shopper traffic, and are there differences in traffic growth between malls and outlets? A: David Simon reported a 1.5% increase in traffic, noting that while some border properties are not performing at their peak due to restricted cross-border shopping, overall sales and traffic are holding strong. The company continues to see robust performance across its portfolio. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
