Simon Property Group Reports Strong 2025 Results Driven by Major TRG Acquisition Gain and New $2.0B Share Repurchase Program
Summary
Simon Property Group reported a significant increase in 2025 diluted EPS to $14.17, primarily boosted by a $2.9 billion non-cash gain from the acquisition of the remaining interest in The Taubman Realty Group (TRG). The company also authorized a new $2.0 billion stock repurchase program and demonstrated solid operational growth with a 4.7% increase in Portfolio NOI.
Key Events
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Record 2025 Diluted EPS
Diluted EPS increased to $14.17 for 2025, up from $7.26 in 2024, primarily driven by a $2.9 billion non-cash gain ($7.56 per diluted share/unit) related to the remeasurement of the previously held 88% noncontrolling equity interest in TRG.
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Strategic TRG Acquisition Completed
On October 31, 2025, Simon Property Group acquired the remaining 12% interest in The Taubman Realty Group (TRG) for approximately 5.06 million units in the Operating Partnership, leading to the consolidation of TRG's operations.
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New $2.0 Billion Share Repurchase Program Authorized
On February 5, 2026, the Board of Directors authorized a new common stock repurchase program, replacing the prior plan, allowing for the purchase of up to $2.0 billion of common stock through February 29, 2028. During 2025, the company purchased 1,246,190 shares for $226.8 million under the previous plan.
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Solid Operational Performance
Portfolio Net Operating Income (NOI) increased by 4.7% in 2025 compared to 2024. Average base minimum rent for U.S. Malls and Premium Outlets rose by 4.7% to $60.97 per square foot as of December 31, 2025.
Analysis
The 2025 annual report highlights a strong financial year for Simon Property Group, with diluted earnings per share increasing significantly to $14.17. However, a substantial portion of this increase is attributed to a one-time, non-cash gain of $2.9 billion from the remeasurement of its equity interest in The Taubman Realty Group (TRG) upon acquiring the remaining 12%. This acquisition is a significant strategic move, consolidating a major real estate portfolio. Operationally, the company demonstrated healthy underlying growth with a 4.7% rise in Portfolio Net Operating Income (NOI) and average base minimum rent for U.S. Malls and Premium Outlets. The Board's authorization of a new $2.0 billion share repurchase program, replacing a prior one, signals management's confidence and commitment to returning capital to shareholders, especially as the stock is trading near its 52-week high. The company also actively managed its debt profile through various refinancings, maintaining compliance with covenants. While the effective borrowing rate increased and occupancy slightly decreased, the overall financial health and strategic expansion are positive indicators for investors.
At the time of this filing, SPG was trading at $199.30 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $65.1B. The 52-week trading range was $136.34 to $203.60. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.