Simon, the nation's largest mall operator, is signaling renewed strength in brick-and-mortar retail, reporting a second quarter marked by surging leasing volume, higher retailer sales, and a raised full-year outlook. The company's results, released Monday, show a property portfolio that is not only holding its own against shifting consumer habits but also capitalizing on momentum from the World Cup and a robust pipeline of new and emerging brands. Main Developments During the second quarter, Simon signed more than 1,200 leases totaling over 4.8 million square feet, according to Eli Simon, president, CEO, and COO, who discussed the results on a conference call. The number of new deals jumped more than 20 percent year-over-year, with new leases representing about 28 percent of total lease square feet. Leasing momentum extends well into the future. Simon said the company has completed more than 87 percent of its 2026 expirations, ahead of last year's pace, and is already negotiating 2027 and 2028 expirations with many tenants. The pipeline of prospective deals continues to build, remaining well ahead of last year's pace, reflecting broad-based tenant demand across geographies and retail categories. Read also: Why BTS Star V Is Champion's New Global Face Financially, second-quarter real estate funds from operations (FFO) reached $1.25 billion, or $3.29 per diluted share, up 7.9 percent from $1.15 billion, or $3.05 per share, in the prior year. Excluding a non-cash after-tax gain in the prior-year period, FFO was $1.19 billion, or $3.12 per share, compared with $1.19 billion, or $3.15 per share, in 2025. Net income attributable to common stockholders was $483.1 million, or $1.49 per diluted share, down from $556.1 million, or $1.70 per share, a year earlier, which included a $0.21 per-share non-cash gain. Domestic property net operating income rose 8.5 percent, while the portfolio level increased 8.3 percent year-over-year. Occupancy held steady at 96 percent as of June 30, unchanged from a year earlier, while base minimum rent per square foot climbed 6.3 percent to $62.42 from $58.70. Reported retailer sales per square foot for the trailing 12 months ended June 30 reached $838, up 13.9 percent from $736. Background Simon has been navigating a retail landscape that has seen significant store closures and bankruptcies. A notable case is Saks Off 5th, part of Exemplar Luxury Group (formerly Saks Global), which emerged from bankruptcy last June. The off-price retailer closed 57 units, leaving just 12, and vacated roughly 1 million square feet at Simon properties, paying $18 million in rent. Simon is re-tenanting that space, and the early results are promising. "The deals we have signed today — about half the spaces are already well in excess of that — and the rest are under discussions and near final deals," Simon said. "We'll basically take the $18 million and turn it into $44 million." The company has also been focusing on emerging brands and categories that resonate with younger consumers. Simon highlighted strength in luxury, jewelry, and watches, which remain strong and growing with no sign of slowdown. Juniors brands targeting Gen Z have posted 16 straight months of positive comparable sales, a run Simon called "staggering given all the macro noise." Why It Matters Simon's results offer a counter-narrative to persistent concerns about the decline of physical retail. The company's ability to sign more leases, raise rents, and boost retailer sales per square foot suggests that well-located, well-managed malls can still thrive, even as e-commerce captures more spending. The re-tenanting of Saks Off 5th space at higher rents demonstrates the value of prime real estate and the appeal of a diversified tenant mix. By attracting new and emerging brands across technology, athleisure, home, and jewelry, Simon is positioning its properties as destinations for experiences and discovery, not just transactions. The company's raised guidance and dividend increase signal confidence in sustained demand. These moves also matter for investors, as Simon is a bellwether for the mall sector and its performance is closely watched as a gauge of consumer health. What's Next Simon raised its full-year 2026 real estate FFO guidance to $13.20 to $13.30 per share, up from $13.10 to $13.25. The board also increased the quarterly common stock dividend to $2.25 for the third quarter of 2026, a 4.7 percent year-over-year increase, payable on Sept. 30 to shareholders of record on Sept. 9. Looking ahead, the company will continue to negotiate leases for 2027 and 2028 expirations, with the pipeline of prospective deals remaining ahead of last year's pace. Simon also plans to build on the World Cup momentum, which included fan experiences, watch parties, retailer collaborations, and community programming across its portfolio. While Simon did not specify which new retailers or brands are signing leases, he noted the diversity across categories, g