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Simon profit jumps on improving occupancy, rents

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Indianapolis-based Simon Property Group on Wednesday morning said its second-quarter profit jumped by 20 percent on rising occupancy and rents.

The country’s largest shopping mall owner reported profit of $406.6 million, or $1.31 per share, compared with $339.9 million, or $1.10 per share, in the same period of 2013.

Funds from operations, a measurement of a real estate investment trust’s ability to generate cash, rose to $783.8 million, or $2.16 per share, compared with $766.3 million, or $2.11 per share.

Simon’s FFO beat analysts' per-share estimates by a penny and included costs related to its spinoff in May of Washington Prime Group.

Quarterly revenue rose 9 percent, to nearly $1.2 billion.

Occupancy in its malls climbed to 96.5 percent in May, up from 95.1 percent a year ago. Total sales per square foot increased from $577 to $608. Average rents also grew, to $45.83 per square foot, up from $41.41 a year ago.

Simon raised its FFO guidance by 5 cents, to a range of $9.01 to $9.11 per share for the year ending Dec. 31. It also increased its guidance on profit for the year to a range of $4.61 to $4.71 per share.

The company also declared a $1.30 per share dividend, a 13-percent increase from the same quarter last year.

Simon shares were set to open trading at $171.33 each, near their 52-week high of $172.01.

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  • Be constructive with comments
    Thank tax payers? Yes…because downtown Indy was such a hot bed of dining, entertained, urban living. Do you honestly think that without the mall changing the tide that downtown Indy would be where it is today? There would be no housing boom. No retail explosion. No Super Bowl. Visit cities who don’t invest in urban landscapes and see if they would support a JOINT VENTURE with a company (who by the way built and entire building to stay downtown). Spread sour grapes elsewhere.
  • Thank the taxpayers too
    Simon should thank the taxpayers for financing the Circle Center mall.

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