Simon Property Group (SPG) investor relations material

Company overview and financial performance

• Operates over 250 retail properties globally, with 90% of NOI from the U.S. and 10% international.

• Generates over $4.5 billion in annual funds from operations and pays over $3 billion in dividends, with a 4.5% yield.

• Has paid over $47 billion in dividends since going public and delivered a 4,300% total shareholder return since 1993.

• Q2 real estate FFO was $3.05 per share, driven by occupancy gains, higher traffic, and retail sales.

• Domestic property NOI grew 4.2% in Q2, with portfolio NOI up 4.7% including international assets.

Strategic initiatives and innovation

• Launched Simon Plus, an omnichannel loyalty program allowing customers to earn and redeem points both in-store and online.

• Simon Search enables real-time inventory search, driving incremental visits and providing valuable consumer insights.

• Investing in data analytics and digital infrastructure, aiming for significant impact by 2025-2026.

• Retailers benefit from enhanced data sharing and marketing opportunities through these platforms.

• Over 500 rewards already available in Simon Plus beta, with expectations for rapid retailer adoption.

Market trends and operational outlook

• Consumer spending remains resilient, with strong back-to-school sales and robust retailer demand for space.

• Malls outperform outlets, with middle-market centers showing particular strength.

• Higher-end consumers continue to drive sales, influenced by asset values and stock market performance.

• Occupancy at malls and premium outlets reached 96%, with potential to exceed historical highs.

• Retailers are securing long-term leases due to limited new supply and high-quality locations.