SPG - Quick Take - Real Estate FFO Beat; Raised Low End of FY Guidance; Good NOI Growth Easily Outpacing Refi Headwinds

Research evidence excerpt

SPG - Quick Take - Real Estate FFO Beat; Raised Low End of FY Guidance; Good NOI Growth Easily Outpacing Refi Headwinds

rtfolio base minimum rent of $61.99 psf was up 5.2% YOY versus 4.7% YOY in 4Q25.

Reported retailer sales for the trailing twelve months were $819 psf versus $799 psf as of

✓ First Look Post Earnings the prior quarter.

The signed but not open (“SNO”) pipeline totaled 310 bps versus 210 bps as of 4Q25 and

300 bps as of 1Q25. SPG has 3.2% of the portfolio expiring in 2026, plus month-to-month

expirations of 5.1% (up from 3.0% a quarter earlier).

Interest expense rose to $275.7M in 1Q26 from $227.0M a year earlier, with the average

interest rate increasing to 4.11% from 3.89%, as SPG continues to refinance maturities in a

higher-for-longer rate backdrop. The company’s cost of debt remains relatively low, even if

refinancing very low interest rate maturing debt is still dilutive. This quarter, SPG completed

an $800 million offering of 5-year, 4.3% senior notes with proceeds used to repay $800

million of maturing 3.3% notes. Roughly $5.1 billion of debt (at SPG’s share) is set to mature

in FY26 at a 3.7% interest rate. SPG ended 1Q26 with $1.2 billion of cash (including JV) and

$7.5 billion of available borrowing capacity under its revolving credit facilities.

During 1Q26, SPG repurchased 965K of common shares for $175M, or an average

price of $181.59 per share. For reference, our most recently published NAV estimate

is $169.93ps, the consensus NAV is $181.83ps and the stock closed at $201.00ps this

afternoon.

Today, SPG declared a $2.25ps quarterly common dividend, up 2.3% from the previous

payment and up 7.1% year-over-year.

Normalized FFO Beat: First quarter FFO of $2.91 per share was below our $3.06ps

estimate and the $3.01ps consensus.