IBJNews

Simon posts strong quarter as mall occupancy strengthens

Back to TopCommentsE-mailPrintBookmark and Share

Simon Property Group Inc., the largest U.S. shopping-mall owner, reported an 8.1-percent increase in fourth-quarter funds from operations as retailer demand for space in outlet centers climbed.

FFO, which gauges a property company’s ability to generate cash, rose to $894.8 million, or $2.47 a share, from $827.4 million, or $2.29, a year earlier, the Indianapolis-based real estate investment trust said Friday morning.

The average of 22 analyst estimates was $2.43 a share, according to data compiled by Bloomberg. Simon declared a $1.25 per share dividend, up from $1.20 for the previous three months and 8.7 percent more than a year earlier.

Simon is benefiting as retailers seek space in outlet centers, where brand-name items are sold at a discount.

Overall, occupancy in its malls climbed to 96.1 percent in December from 95.3 percent at the end of 2012 as total sales per square foot increased from $568 to $582. Rents also grew, to $42.34 per square foot in the fourth quarter from $40.73 in the year-ago period.

Profit increased 21 percent, to $381.6 million, or $1.23 per share, compared with $315.4 million, or $1.01 per share, in the fourth quarter of 2012.

Quarterly revenue rose 5 percent, to $1.4 billion.

“This was an excellent quarter and year for Simon Property Group, capped off by our 20th anniversary as a public company in December,” Simon CEO David Simon said in a prepared statement. “We produced strong financial and operating results in the fourth quarter, led by 5.5-percent growth in comparable property net operating income for our U.S. malls and premium outlets."

For the entire year, Simon reported FFO of $3.2 billion, or $8.85 per share, compared with $2.9 billion, or $7.98 per share, in 2012. The company forecast 2014 FFO per share in the range of $9.50 to $9.60.

Net income in 2013 fell slightly, to $1.3 billion, or $4.24 per share, compared with $1.4 billion,  or $4.72, in the prior year. Results for 2012 include non-cash net gains from acquisitions and dispositions of $1.41 per share.

Revenue in 2013 grew 5.9 percent, to $5.2 billion.

In December, Simon announced that it will spin off all of its strip centers and 44 smaller malls into a separate public company. The transaction should be completed in the second quarter, Simon said.

Simon shares rose 2.9 percent in premarket trading, to $155 each.
 

ADVERTISEMENT

  • Repay the people
    Well now Simon can repay Indianapolis the 400 million we have given them for the Circle Center Mall

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I am also a "vet" of several Cirque shows and this one left me flat. It didn't have the amount of acrobatic stunts as the others that I have seen. I am still glad that I went to it and look forward to the next one but I put Varekai as my least favorite.

  2. Looking at the two companies - in spite of their relative size to one another -- Ricker's image is (by all accounts) pretty solid and reputable. Their locations are clean, employees are friendly and the products they offer are reasonably priced. By contrast, BP locations are all over the place and their reputation is poor, especially when you consider this is the same "company" whose disastrous oil spill and their response was nothing short of irresponsible should tell you a lot. The fact you also have people who are experienced in franchising saying their system/strategy is flawed is a good indication that another "spill" has occurred and it's the AM-PM/Ricker's customers/company that are having to deal with it.

  3. Daniel Lilly - Glad to hear about your points and miles. Enjoy Wisconsin and Illinois. You don't care one whit about financial discipline, which is why you will blast the "GOP". Classic liberalism.

  4. Isn't the real reason the terrain? The planners under-estimated the undulating terrain, sink holes, karst features, etc. This portion of the route was flawed from the beginning.

  5. You thought no Indy was bad, how's no fans working out for you? THe IRl No direct competition and still no fans. Hey George Family, spend another billion dollars, that will fix it.

ADVERTISEMENT