S
imon Property Group Inc (NYSE:SPG) reported a 5.6 % rise in FFO per share to $3.22 for Q3, up from $3.05 a year earlier. The company finalized its purchase of the remaining 12 % stake in Tubin Realty Group, boosting portfolio quality and operational efficiency. Occupancy climbed to 96.4 % in malls and premium outlets and 99.4 % in the Mills. Retail sales per square foot grew over 4 % in the quarter. SPG raised its Q4 dividend to $2.20, a $0.10 increase (4.8 %) from the prior year. Lower interest income and higher expenses added a $0.09 drag to earnings YoY. Las Vegas assets lagged, with sales falling short due to weaker tourism. Tariff risks continue to weigh on smaller retailers, adding uncertainty. The firm still struggles to unlock full potential at its value‑centric centers, where sales growth lags that of upscale sites. The retail landscape remains volatile, with technology shifts such as AI and e‑commerce posing additional challenges. GuruFocus flagged eight warning signs for SPG. Is the stock fairly valued? Use our free DCF calculator to test your thesis.

    **Q:** What operational gains are expected from the full integration of Tubman assets to lift yield by 50 bps?

    **A:** CEO David Simon said the initial 80 % acquisition cut public‑company costs; full ownership now allows seamless integration of development, leasing, marketing, and brand initiatives, driving occupancy and cash flow toward an 8 % cap rate.

    **Q:** What is the cap rate for the final 12 % purchase of Tubman and projected growth?

    **A:** Simon noted the overall cap rate sits just above 7.25 %; with synergies, they target over 8 %. Portfolio intrinsic growth should accelerate NOI growth.