1Q26 First Look: Beats with Fundamentals Supporting Higher Guidance

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1Q26 First Look: Beats with Fundamentals Supporting Higher Guidance

rom $13.00 - $13.25, with implied NAREIT FFO now $12.84 160

- $12.99. Heading into the quarter, PSC FY26E was $13.13 and Street was $13.22. 150

increased the dividend to $9.00/annual (+2.3% sequentially and +7.1% YoY). May-25 Jul-25 Sep-25 Nov-25 Jan-26 Mar-26 May-26 ◦SPG

bought back $175m @ $182 in 1Q26. Source: Bloomberg ◦SPG

• We think the stock should outperform on Tuesday given the core beat and upside

potential to the top-end of guidance to increase.

• Domestic NOI increased 6.7% in 4Q25 (+6.7% including International). Occupancy

was 96.0% in 1Q26 versus 95.9% in 1Q25 and 96.4% in 4Q25. Minimum ABR was

$61.99 for 1Q26 versus $58.92 in 1Q26 and $60.97 in 4Q25. TTM tenant sales were

$819/sf, compared to 4Q25's $799/sf.

• Other conference call tidbits. 1) While there is no full size data center potential,

micro-data centers are a possibility as technology advances. 2) No plans to exit

Catalyst (fka SPARC), Jamestown, or Rue Gilt, as management sees these three OPI

businesses well capitalized but always re-assesses. 3) Centers catering to Europeans

and Canadians remain impacted, while American tourist assets in Florida have been

more than compensating. 4) Food and beverage is flat, not participating in the retailer

strength, which doesn't surprise given restaurant price inflation since the pandemic.

5) Stock buybacks remain active, especially as management pledged to fully retire

the 5m shares issued last year to buyout the remaining 12% of TCO. Implies 2.8m

more shares to go. 6) SPG has redeemed Euro 180m of converts for Euro 80m and

4m Klepierre shares and post-quarter settled Euro 370m in cash, leaving Euro 188m

(3.5%) due 11/14/26. SPG holds a 20.7% stake in Klepierre and now once again has 3