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imon Property Group's second-quarter real estate funds from operations (FFO) surged, driven by strong leasing demand for its shopping centers. A limited supply of rental properties has enabled mall operators like Simon to increase rent prices. This trend is also benefiting other REITs, such as Kimco Realty, which recently raised its annual FFO and earnings projections due to steady leasing activity at its grocery-anchored malls.

    Simon Property Group reported a second-quarter FFO of $3.05 per share, up from $2.93 per share in the same period last year. The company's occupancy rates at its malls and premium outlets reached 96% as of June 30, a 0.4% increase from the previous year. Additionally, its base minimum rent per square foot rose to $58.70 from $57.94.

    Simon Property Group now expects its 2025 FFO to be between $12.45 and $12.65 per share, up from its previous target of $12.40 to $12.65. The company's lease income revenue for the second quarter was $1.38 billion, a $60 million increase from the same period last year.