Simon Property Q4 net income surges on Taubman realty gain

Overview

• Real estate investment trust's Q4 net income rose significantly due to Taubman acquisition gain

• Real Estate FFO for Q4 increased 4.2% yr/yr

• Company announced a 4.8% increase in quarterly dividend for Q1 2026

Outlook

• Simon estimates 2026 net income per diluted share between $6.87 and $7.12

• Simon expects 2026 Real Estate FFO per diluted share between $13.00 and $13.25

Result Drivers

• TAUBMAN ACQUISITION - Net income surged due to a non-cash gain from acquiring the remaining interest in Taubman Realty Group

• NOI INCREASE - Domestic property NOI rose 4.8% and portfolio NOI increased 5.1% compared to the prior year period

• LEASING AND PROJECTS - Executed over 17 million sq ft of leases and completed 23 significant redevelopment projects

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for Simon Property Group Inc is $198.00, about 3.5% above its January 30 closing price of $191.31

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nPn5w2kMMa

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