Simon Property Group’s Results Challenge the Retail Real Estate Recession Story

Simon Property Group surprised the market by raising its full-year 2025 revenue and profit outlook after a stronger-than-expected third quarter. The company reported revenue of $1.45 billion, up from $1.34 billion a year earlier, and net income rose to $607 million from $582 million. Occupancy across its U.S. malls and outlets held steady at 96.4 percent, showing that well-located retail properties continue to perform even in a cautious consumer climate.

For the retail real-estate sector this is significant. Many had assumed that malls and outlet centres were permanently impaired by e-commerce and hybrid-shopping habits—but Simon’s results suggest that well-positioned retail real-estate is showing resilience. The uptick in base minimum rent per square foot reflects stronger-than-expected pricing power. In an environment of elevated interest rates and soft property sales, having a stable occupancy rate near 96% gives a major retail REIT the confidence to raise its guidance. If Simon’s performance is any guide, other retail centres may also be moving from survival mode to selective growth mode...

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RSK: Retail Malls have been doing just fine. Rents have remained steady and even increased.