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Simon ups dividend after beating analysts' expectations

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Simon Property Group Inc. raised its quarterly dividend as funds from operations rose amid increased shopper spending at its shopping centers and outlet malls.

FFO, which gauges a real estate company’s ability to generate cash, climbed in the fourth quarter to $827.4 million, or $2.29 a share, from $678.9 million, or $1.91, a year earlier, Indianapolis-based Simon said Monday morning. The average estimate of 19 analysts in a Bloomberg survey was $2.17 a share. The company raised its quarterly dividend to $1.15 a share from $1.10.

Demand for space at regional malls is rising, helping to boost rent revenue. U.S. retail sales excluding autos advanced 4.1 percent in December from a year earlier, according to data from the Commerce Department.

Simon is the nation's biggest owner of both regional malls and outlet centers, where retailers sell at a discount.

“They’re doing very well,” Rich Moore, an analyst at RBC Capital Markets in Solon, Ohio, said in an interview before results were announced. “The notion that there are bargains to be had at the outlet center is enticing to people.”

Revenue increased 15 percent in the fourth quarter from a year earlier, to $1.34 billion. Occupancies at Simon’s U.S. properties climbed to 95.3 percent from 94.6 percent. The base minimum rent in the quarter was $40.73 a square foot, up from $39.40 a year earlier. Tenant sales rose 6.6 percent to $568 a square foot.

Earnings in the quarter fell 13 percent, to $315.4 million, or $1.01 per share, from $362.9 million, or $1.24 per share, in the prior year.

Earnings for the year rose 40 percent, to $1.43 billion, or $4.72 per share, from $1.02 billion, or $3.48 per share, in the previous year.

Annual revenue climbed 13 percent, to $4.88 billion from $4.31 billion.

For 2013, Simon Property anticipates FFO between $8.40 and $8.50 per share and earnings in a range of $3.55 to $3.65 per share. Analysts predict FFO of $8.43 per share and earnings of $3.83 per share.

Simon Property owns or has an interest in 328 retail properties in North America and Asia.

Company results were announced before the start of regular U.S. trading. Simon shares rose 1.1 percent, to $161.97 each, on Feb. 1. Its shares have advanced 19 percent in the past 12 months, compared with an 11-percent gain in the Bloomberg REIT Index.

Shares rose less the 1 percent Monday morning, to $162.90 each.

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  1. Now if he'd just stay there...

  2. Daniel - what about the many US citizens who do NOT follow what the Bible teaches? The Hindus, Jews, Muslims and others who are all American citizens entitled to all rights as Americans?? This issue has NOTHING to do with "What the Bible says..." Keep all Churches separate from State! Pence's ongoing idiocy continues to make Indiana look like a backwards, homophobic state in the eyes of our nation. Can't we move on to bigger issues - like educating our kids?

  3. 1. IBJ should link to the referenced report. We are in the age of electronic media...not sharing information is lazy. Here is a link http://www.in.gov/gov/files/Blue_Ribbon_Panel_Report_July_9_2014.pdf 2. The article should provide more clarity about the make-up of this panel. The commenters are making this item out to be partisan, it does not appear the panel is partisan. Here is a list of the panel which appears to be balanced with different SME to add different perspectives http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=138116?formation_id=189603 3. It suggests a by-pass, I do not see where this report suggests another "loop". 4. Henry, based on your kneejerk reaction, we would be better off if you moved to another state unless your post was meant as sarcasm in which case I say Well Done. 5. The article and report actually indicates need to improve rail and port infrastructure in direct contradiction to Shayla commentary. Specifically, recommendation is to consider passenger rail projects... 6. People have a voice with their elected officials. These are suggestions and do not represent "crony capitalism", etc. The report needs to be analyzed and the legislature can decide on priorities and spending. Don't like it, then vote in a new legislature but quit artificially creating issues where there are none! People need to sift through the politics and provide constructive criticism to the process rather than making uninformed comments in a public forum based on misinformation. IBJ should work harder to correct the record in these forums when blatant errors or misrepresentations are made.

  4. Joe ... Marriage is defined in the Bible ... it is mentioned in the Bible often. Marriage is not mentioned once in the US or Indiana Constitution ...

  5. Daniel - Educate me please: what does the Bible have to do with laws? If the government wasn't in the business of marriage to begin with, then it wouldn't have to "define" marriage at all. Marriage could be left as a personal, religious, or otherwise unregulated action, with no ties to taxes, legal status, etc. Then people could marry whomever they want, and all this silliness would go away. Remember to vote Libertarian in November.

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