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Simon Property Group Lifts 2025 FFO Forecast as Occupancy Rises
4 Aug
Summary
- Simon Property Group's Q2 2025 FFO up 4% year-over-year
- Occupancy at malls and outlets reaches 96% in Q2 2025
- Rental rates per square foot increase to $58.70 in Q2 2025
In the second quarter of 2025, Simon Property Group, a major commercial real estate investment trust, has reported a rise in its real estate funds from operations (FFO), a key performance metric for REITs. The company's Q2 2025 FFO stood at $3.05 per share, up from $2.93 per share a year earlier.
This increase in FFO was supported by strong leasing demand for Simon Property's shopping centers, which has allowed the company to raise rental rates. The occupancy levels at Simon's malls and premium outlets reached 96% in the quarter ended June 2025, up 0.4% from the same period a year ago. Additionally, the company's base minimum rent per square foot rose to $58.70 from $57.94 a year earlier.
As a result of this robust performance, Simon Property Group has now raised its 2025 FFO guidance to be between $12.45 and $12.65 per share, compared to its previous target of $12.40 to $12.65 per share. The company, which counts luxury conglomerate LVMH among its top tenants, saw its second-quarter 2025 revenue from lease income increase to $1.38 billion, up from $1.32 billion a year ago.
