Simon Property Group Revenue Jumps 20 per Cent as Retailer Leasing Surges

Simon Property Group lifted second-quarter revenue by 20 per cent to US$1.79 billion as retailer demand pushed occupancy across its global portfolio to 96 per cent.

The shopping centre landlord completed more than 1,200 lease deals during the three-month period, up 20 per cent year over year, with rent spreads on new leases gaining 17 per cent.

First-half revenue reached US$3.548 billion, also up 20 per cent compared to the same period in 2025. Net after-tax income attributable to stockholders fell 13.1 per cent to US$483.1 million in the quarter, leaving first-half profit flat at US$962.7 million. Funds from operations totaled US$1.185 billion in the second quarter and reached US$2.293 billion across the first six months.

Outlet conversions and tenant mix

Average base minimum rent across the US properties rose 6.3 per cent to US$62.42 per square foot. The landlord is carving up approximately 1 million square feet of shuttered Saks Off 5th outlet space into smaller parcels, which chief executive Eli Simon said will lift rental revenue on those boxes from US$18 million to US$44 million.

Leasing demand spanned athleisure, home goods, Gen Z apparel, and Asian beauty and collectables brands entering physical formats. Food and beverage operators form another core target, with incoming restaurant projects expected to generate between US$400 million and US$500 million in incremental sales across regional centres.

Global footprint and Asia presence

The company ended June with 175 malls and premium outlets in the United States, 16 Mills properties, and 42 international centres. Its Asian footprint comprises 19 locations, led by 10 properties in Japan and seven in South Korea.

Asian outlet centres operated through joint ventures continue to capture cross-border retail traffic, serving as low-risk entry points for brands testing overseas demand without committing to high-street flagships. RetailNews Asia tracks how western mall operators increasingly count on Asian beauty, lifestyle, and character-merchandise concepts to fill medium-sized vacancies left by shrinking traditional apparel chains.

Management allocated all first-half capital expenditure toward densification, hotel additions, and residential mixed-use redevelopments rather than new ground-up mall openings, with re-leasing work on the remaining outlet vacancies scheduled through 2027.