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Simon posts strong quarter as mall occupancy strengthens

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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.
 

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

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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