Simon Property Group, Inc.

Greetings. Welcome to Simon Property Group's fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and the number zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Tom Ward, Senior Vice President of Investor Relations. Thank you. You may begin.

Thank you, Vaughn, and thank you all for joining us this evening. Presenting on today's call are David Simon, Chairman, Chief Executive Officer and President, Eli Simon, Chief Operating Officer, and Brian McDade, Chief Financial Officer. A quick reminder that statements made during this call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995. And actual results may differ materially due to a variety of risks, uncertainties, and other factors. We refer you to today's press release and our SEC filings for a detailed discussion of the risk factors relating to this form of the statement. Please note that this call includes information that may be accurate only as of today's date. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included within the press release and the supplemental information in today's form eight-day filing. Both the press release and the supplemental information are available on our IR website at investors.simon.com. Our conference call this evening will be limited to one hour. For those who would like to participate in the question and answer session, we ask that you please respect our request to limit yourself to one question. And please introduce David Simon.

Good evening. We delivered strong financial and operational results in the fourth quarter, capping another impressive year for our company. We achieved excellent leasing performance, acquired $2 billion, high-quality retail properties, completed more than 20 major redevelopment projects, and opened a new premium outlet in Indonesia. We reported record real estate funds from operation of $4.8 billion, or $12.73 per share. Our results reflect solid fundamentals, strong occupancy, accelerating shopper traffic growth, healthy and growing retail sales, positive supply and demand dynamics, all driving improvement in our cash flow. We return approximately $3.5 billion in cash to our shareholders through common stock repurchases and record cash dividends. In our yearly tally, we have now paid approximately $48 billion in cash to shareholders in dividends over our history as a public company. With that, I'm now going to turn it over to Eli. We'll discuss our leasing and investment activities, and then Brian will cover our fourth quarter results and our outlook for next year in more detail. Thank you. During 2025, we acquired the Malt, two well-known luxury outlet centers in Italy, our partner's interest in Brickell City Center, a premier mixed-use property in Miami's rapidly growing central business district, the remaining 12% interest in Taubman Realty Group we did not previously own, and Philips Place, a high-productivity open-air retail center in Charlotte, a market we know well with significant upside from re-merchandising and densification. These deals enhance the quality of our portfolio, and we look forward to deploying our leasing and property management expertise along with our strong balance sheet to pursue new growth and value creation opportunities across these properties. Retailer demand remains strong across our portfolio. We signed more than 1,300 leases totaling over 4.4 million square feet during the quarter, and over 4,600 leases for more than 17 million square feet for the year. Approximately 30% of our annual volume was new deals, reflecting continued strong demand across our portfolio. Now turning to development. We completed more than 20 significant redevelopment projects in 2025, including retail and experiential additions at Southdale Center, Stanford Shopping Center, King of Prussia, and a forum shop at Caesars. and mixed-use additions, including hotel and residential at Northgate Station and Lakeland Mall, respectively. In 2026, notable retail and mixed-use projects scheduled to come online include Brea Mall, Northgate Station first phase of residential, an open-air expansion with restaurants and retail at the shops in Mission Viejo, Briarwood Mall with the new Harvest Market, Dick's Sporting Goods, and Residential, and at Tacoma Mall, new Village Shops and Restaurants. We also expect to begin construction on exciting new projects, including anchor redevelopments at Fashion Mall at Keystone and Town Center at Boca Raton, expansions at Toronto, Desert Hills, and Woodbury Common Pre and Outlet are progressing, and Sagefield, our new open-air retail and mixed-use development in Nashville. We also plan to enhance the merchandise mix and invest in meaningful capital upgrades at former TRG assets, including the Mall at Green Hills, International Plaza, and Cherry Creek Shopping Center. At year end, our share of the net cost of developments across all platforms totals approximately $1.5 billion, with a blended yield of 9%. Approximately 45% of net costs are for mixed-use projects. Our pipeline of new development and redevelopment opportunities continues to grow and now exceeds $4 billion. I'll now turn it over to Brian, who will walk through our fourth quarter results. Thank you, Eli. Real estate FFO was $3.49 per share in the fourth quarter compared to $3.35 in the prior year, 4.2% growth. Domestic and international operations both performed well, contributing 26 cents of growth, driven by a higher lease income across the business. As anticipated, lower interest income and higher interest expense combined were a seventh and dragon. Domestic property interline growth was strong and increased 4.8% year-over-year for the quarter and 4.4% for the year. Portfolio NOI, which includes our international properties at constant currency, grew 5.1% for the quarter and 4.7% for the year. Malls and trading outlets ended the year at 96.4% occupancy, and the mills ended at 99.2%. The addition of the TRG assets reduced occupancy by 20 basis points for malls and premium outlets and 30 basis points for the mills. We expect to drive higher occupancy at these assets as we execute on our leasing strategy. Average base minimum rents increased 4.7% year-over-year for the malls and the premium outlets. The TRG properties contributed approximately 250 basis points to this growth. Retailer sales per square foot for the malls and the premium outlets were $799 per square foot per year. The SPG-only portfolio was up 2% year over year. Importantly, total sales volumes were approximately 4% in the important fourth quarter and 3% for the full year. Occupancy cost at the end of the year was 12.7%. Turning to the balance sheet, during 2025, we completed approximately $9 billion in financing activities, including a dual-trans U.S. Senior Notes offering that totaled $1.5 billion in a combined average term of 7.8 years and a weighted average coupon rate of 0.77%. It also completed $7 billion of secured loan refinancing and extensions in a year. Subsequent to year end, we completed an $800 million offering of five-year numbers and a spread of 65 basis points for five-year treasury. We used the proceeds to repay $800 million of notes that matured on January 15, 2026. Our A-rated balance sheet provides a distinct advantage with more than $9 billion of liquidity at year-end and a net EBITDA measure of 5.0 times. During 2025, we paid more than $3.2 billion in common stock dividends and repurchased over 1.2 million shares for approximately $227 million. Subsequent to year-end, we purchased an additional 273,000 shares for $50 million. And today, we announced our dividend of $2.20 per share for the first quarter, a year-over-year increase of 10 cents or 48%. The dividend is payable on March 31st. Turning to our 26th guidance, we expect real estate FFOs of $13 to $13.25 per share with a midpoint of $13 to $13.