Portfolio NOI Growth
Portfolio net operating income increased 7.5% for the six months ended June 30, 2026, driven by improved domestic and international operations and acquisition activity.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Simon Property Group's second quarter of fiscal 2026 (Q2 FY2026) was defined by the full consolidation of The Taubman Realty Group following the October 2025 acquisition, which reshaped the income statement. Lease income surged by $280.3 million, with $197.5 million directly attributed to acquisitions, while portfolio net operating income grew 7.5% on a six-month basis. However, higher depreciation and interest expenses—up $120.8 million and $48.4 million respectively, largely from the TRG deal—plus a non-cash impairment caused diluted EPS to decline 12.4% despite the revenue momentum. The quarter underscores a tension: strong operational fundamentals—occupancy held at 96.0% and average base rent rose 6.3%—are being temporarily masked by integration costs and a heavier debt load.
Revenue
$1.79B
+19.50% YoY
EPS (Diluted)
$1.49
-12.35% YoY
Operating Income
$824.1M
+10.74% YoY
Source: SEC XBRL
Simon Property Group (SPG) reported Q2 FY2026 revenue of $1.79B, up 19.5% year over year. Operating margin was 46.0%, down 3.7 points from 49.7% a year earlier. SPG's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.49 | 1.69 | Miss -11.9% |
| Mar 2026 | 1.48 | 1.50 | Miss -1.5% |
| Dec 2025 | 0.43 | 2.02 | Miss -78.7% |
| Sep 2025 | 1.86 | 1.70 | Beat +9.6% |
Compiled by AI from 10-Q Item 2 of this filing
Portfolio net operating income increased 7.5% for the six months ended June 30, 2026, driven by improved domestic and international operations and acquisition activity.
Source: 10-Q Item 2 MD&A
U.S. Malls and Premium Outlets average base minimum rent rose 6.3% to $62.42 per square foot, while ending occupancy remained stable at 96.0%.
Source: 10-Q Item 2 MD&A
Lease income for the three months ended June 30, 2026, increased $280.3 million, of which $197.5 million was attributable to acquisitions including the TRG transaction.
Source: 10-Q Item 2 MD&A
The Company issued $1.3 billion in senior notes, entered into a $460 million term loan, and settled $547.1 million of exchangeable bonds, reducing convertible debt and extending maturities.
Source: 10-Q Item 2 MD&A
Depreciation and amortization rose $120.8 million and interest expense increased $48.4 million, primarily due to the TRG Acquisition, squeezing operating margins to 46.0% from 49.7%.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
Long-term debt of $28.7 billion and a debt-to-equity ratio of 7.64 significantly exceed typical levels, making the company vulnerable to rising interest rates and tightening credit markets. Refinancing $1.3 billion in maturing debt in the first half of 2026 underscores ongoing dependence on capital markets.
Source: 10-Q Balance Sheet (XBRL)
Interest expense jumped $48.4 million in the quarter and the effective borrowing rate rose 30 basis points to 3.93%, reflecting higher rates on new debt. With 4.5% of debt floating, further rate increases could pressure cash flows available for distributions.
Source: 10-Q Item 2 MD&A
The Taubman acquisition added $197.5 million in quarterly lease income but also drove a $120.8 million increase in depreciation and $48.4 million in interest expense, along with transition and restructuring costs. Achieving projected synergies is critical to offset these higher fixed costs.
Source: 10-Q Item 2 MD&A
Revenue is entirely derived from retail tenants; a sustained consumer spending pullback or a wave of retailer bankruptcies could reduce occupancy and rent collections, despite current occupancy at 96.0%. The portfolio remains sensitive to discretionary retail trends.
Source: 10-Q Income Statement (XBRL)
Significant investments in Europe and Asia, along with €187.5 million in outstanding exchangeable bonds, expose earnings to EUR/USD and other currency fluctuations. A strengthening dollar could reduce the value of translated foreign income.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.79 $B | 1.50 $B | +19.50% |
Operating Income $M | 824.10 $M | 744.20 $M | +10.74% |
EPS (Basic) $ | 1.49 $ | 1.70 $ | -12.35% |
EPS (Diluted) $ | 1.49 $ | 1.70 $ | -12.35% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Simon Property Group reported strong Q1 2026 revenue growth of 19.3% YoY to $1.76B, though operating margin contracted 6 percentage points to 43.4% amid significantly higher leverage with debt-to-equity of 6.85x.
Simon Property Group delivered solid FY2025 results with revenue growing 6.7% to $6.36B and EPS nearly doubling to $14.17, driven by strong operating cash flow of $4.14B, though total assets surged 25.3% largely due to increased long-term debt of $28.4B.
Other companies in Retail REITs