Simon Property Group Reports Q4 Gains Amid Continued Tariff Uncertainty

Mall giant Simon Property Group closed 2025 with fourth-quarter growth but continued to sound alarms about the potential negative effects of President Donald Trump’s tariff policy on the retail sector. 

The Indianapolis-based real estate investment trust (REIT) posted real estate funds from operations of $1.328 billion, or $3.49 per diluted share, a 4.2 percent increase from $1.261 billion, or $3.35 per diluted share, in the year-ago period.

Simon signed more than 1,300 leases during the final three months of 2025 encompassing over 4.4 million square feet, according to the REIT. It ended 2025 with in excess of 4,600 leases totaling more than 17 million square feet for the year compared with 5,000 leases and 21 million square feet executed in 2024.

David Simon, chairman and chief executive officer at Simon Property Group, said during the REIT’s fourth-quarter earnings call Monday that while steeper tariffs implemented by the Trump administration in April 2025 are hurting smaller retailers more than the big chains, the full impact won’t be felt until this year. Simon said a looming U.S. Supreme Court decision on tariffs expected early this year would be a “small victory” for Simon’s tenant clients if the justices rule against the policy, but stressed pressures from the tariffs continue to persist in early 2026.

“The retailers that we speak to are managing it the best they can, but it is a headwind,” Simon said. “It has probably put more pressure on retailers than it should, and it’s going to end up hurting the small guys, so we’re a little more cautious.”

Occupancy in Simon’s mall and premium outlets portfolio was 96.4 percent as of Dec. 31 compared to 96.5 percent a year earlier. Base minimum rent per square foot was $60.97 at the close of the quarter, a 4.7 percent increase from the end of 2024.

Retailers’ sales per square foot in Simon’s malls and outlet stores was $799 for the trailing 12 months ended Dec. 31, an 8.1 percent increase from $739 reported in 2024’s fourth quarter. 

Simon said unknowns with tariffs and downward sales with Simon’s properties in the northern U.S. near Canada due to Canadian protests aimed at the Trump administration create some uncertainty to open 2026.   

“Canadians are really pissed off, so they’re not going anywhere in the U.S.,” Simon said. “So we’re seeing the north border a little weaker than the south border.” 

Andrew Coen can be reached at acoen@commercialobserver.com.