Simon Property Group (SPG) BofA NY Global Real Estate Conference 2026 summary

Leasing and operational trends

• Leasing demand remains strong, with over 2,300 leases signed and a pipeline up 25%+ year-over-year.

• Occupancy is around 96%, with expectations to surpass last year's levels by year-end.

• New deal rent per square foot is up 17% versus last year, while tenant allowances per square foot are down 12%.

• Consumer traffic and retailer sales are up, especially during the back-to-school period, with broad-based strength across categories and geographies.

• The company is actively reinvesting in its portfolio, with $1.1 billion in projects under construction and another $600 million expected to start by year-end.

Strategic initiatives and technology

• Launching the Simon Media Network to leverage high shopper traffic and consumer data for targeted advertising, attracting interest from diverse industries.

• The Simon+ app and loyalty program provide unique insights into consumer behavior, informing merchandising and leasing decisions.

• Data from the app and loyalty program is used to optimize tenant placement and enhance the shopping experience, offering rewards across all stores.

• The company is bullish on the value of physical stores for brand presentation, especially as AI and digital trends make in-person experiences more critical.

Capital allocation and financial outlook

• Tenant allowances per foot and payback periods are down, even as overall leasing activity increases.

• Free cash flow is expected to fund both development and shareholder returns, with a naturally deleveraging balance sheet.

• The company is generating $5 billion in FFO, paying $3.4–$3.5 billion in dividends, and investing $1 billion in capex and development.

• Acquisitions are focused on brand-accretive assets with long-term value, not driven by short-term interest rate changes.