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

Leasing and consumer trends

• H1 leasing exceeded 2,300 deals and 9.5M sq. ft.; ~27% were new deals, new-deal rent per sq. ft. rose 17% YoY, and tenant allowances per sq. ft. fell 12%.

• Leasing demand spans apparel, dining, entertainment, and health and wellness; the pipeline was 25%+ above the prior-year level at Q2-end.

• Q2 comparable sales rose 5.7%; traffic increased 1.3% in Q1, 2% in Q2, and 3.4% in July-August, with back-to-school demand broad across markets and platforms.

• Occupancy was ~96%; occupancy is expected to finish the year above last year-end, with further gains tied to tenant mix and continued asset improvements.

• About 1M sq. ft. taken back was largely re-leased or out for signature; the space was absorbed in 90 days, reflecting strong demand and higher replacement rents.

Investment and capital allocation

• ~$1.1B of projects were under construction at a 9% yield, roughly half mixed-use; another $600M is expected to start by year-end, with a pipeline exceeding $4B.

• FY cash-flow outlook: ~$5B FFO, $3.4B-$3.5B in dividends, and $1.5B-$1.6B free cash flow; roughly $500M each planned for tenant/operating capital and development.

• Development is expected to be funded from free cash flow; the current $1B of projects plus a $4B pipeline was projected to generate $450M of EBITDA, supporting further investment and shareholder returns.

• The balance sheet was described as naturally deleveraging and below 5x leverage; higher refinancing costs were identified as the main sector impact if long-term rates remain elevated.

• Acquisitions focus on brand-accretive assets with value-add potential at fair prices; long-term asset value and growth prospects guide decisions despite rate moves.

Data, media and customer experience

• Simon Media Network was scheduled to launch Oct. 2; hundreds of millions of annual visits and tens of billions of dollars in sales underpin its audience proposition, with interest from retail, travel, airline, hotel, and credit-card brands.

• More than 4,000 center screens support advertising; additional centers were approved for screen installations, with another group planned for October.

• Simon+ combines physical and online shopping insights; millions of customers had joined in under a year, and loyalty rewards can be earned across stores and online.

• First-party shopping data informs tenant placement, leasing, category trends, and center operations; cross-shopping patterns help organize stores into productive retail neighborhoods.