IBJNews

Simon quarterly results improve as sales increase at malls

Back to TopCommentsE-mailPrintBookmark and Share

Simon Property Group Inc., the largest U.S. shopping-mall owner, reported a 6.3-percent gain in fourth-quarter funds from operations as income from rents rose.

FFO, which gauges a property company’s ability to generate cash, rose to $678.9 million, or $1.91 a share, from $638.7 million, or $1.80, a year earlier, the Indianapolis-based real estate investment trust said Friday morning. Analysts expected FFO of $1.90 a share, the average of 18 estimates in a Bloomberg survey.

The company increased its dividend to 95 cents a share, up from from 90 cents..

Simon is benefiting from a focus on regional shopping malls and outlet centers, which tend to perform better than the broader retail market. The company, which owns or holds stakes in more than 380 retail properties in North America, Europe and Asia, is raising rents and boosting occupancy rates as sales by its tenants rise and retailer demand for space grows.

“They’re arguably in the two best areas in retail,” Craig Guttenplan, an analyst at CreditSights Inc. in London, said before the results were released. “Outside of multifamily, they’re probably in the best shape of any REIT out there.”

Occupancy at Simon’s U.S. properties was little changed in the fourth quarter, at 94.8 percent. Average rent increased 4.4 percent, to $39.42 a square foot. Tenant sales climbed 10.7 percent, to $536 a square foot from $484 a year earlier.

Simon estimated FFO for the year in the range of $7.20 to $7.30 a share. Analysts estimate the company’s FFO will be $7.29 a share, according to a Bloomberg survey.

Revenue rose 4.6 percent, to $1.17 billion from $1.12 billion a year earlier. Net income rose to $363 million from $218 million a year earlier on a bigger gain from acquisitions and disposals.

Simon has reduced its holdings in Europe, selling its stake in a venture that owns 46 Italian shopping centers for an undisclosed amount to its partner, French supermarket chain Auchan’s property arm. Groupe Auchan SA’s Immochan unit acquired Simon’s 49-percent stake in the venture, the French property company said last month.

Simon's results were released before the start of regular U.S. trading. Simon shares rose 0.7 percent, to $137.45 each Thursday. The shares have advanced 34 percent in the past year, compared with an 8.2-percent gain in the Bloomberg REIT Index.

ADVERTISEMENT

  • SPG
    These guys on fire! Whoever thought the internet would destroy their business model is a smuck!

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. Why not take some time to do some research before traveling to that Indiana town or city, and find the ones that are no smoking either inside, or have a patio? People like yourself are just being selfish, and unnecessarily trying to take away all indoor venues that smokers can enjoy themselves at. Last time I checked, it is still a free country, and businesses do respond to market pressure and will ban smoking, if there's enough demand by customers for it(i.e. Linebacker Lounge in South Bend, and Rack and Helen's in New Haven, IN, outside of Fort Wayne). Indiana law already unnecessarily forced restaurants with a bar area to be no smoking, so why not support those restaurants that were forced to ban smoking against their will? Also, I'm always surprised at the number of bars that chose to ban smoking on their own, in non-ban parts of Indiana I'll sometimes travel into. Whiting, IN(just southeast of Chicago) has at least a few bars that went no smoking on their own accord, and despite no selfish government ban forcing those bars to make that move against their will! I'd much rather have a balance of both smoking and non-smoking bars, rather than a complete bar smoking ban that'll only force more bars to close their doors. And besides IMO, there are much worser things to worry about, than cigarette smoke inside a bar. If you feel a bar is too smoky, then simply walk out and take your business to a different bar!

  2. As other states are realizing the harm in jailing offenders of marijuana...Indiana steps backwards into the script of Reefer Madness. Well...you guys voted for your Gov...up to you to vote him out. Signed, Citizen of Florida...the next state to have medical marijuana.

  3. It's empowering for this niche community to know that they have an advocate on their side in case things go awry. http://www.youtube.com/watch?v=Lrst9VXVKfE

  4. Apparently the settlement over Angie's List "bundling" charges hasn't stopped the practice! My membership is up for renewal, and I'm on my third email trying to get a "basic" membership rather than the "bundled" version they're trying to charge me for. Frustrating!!

  5. Well....as a vendor to both of these builders I guess I have the right to comment. Davis closed his doors with integrity.He paid me every penny he owed me. Estridge,STILL owes me thousands and thousands of dollars. The last few years of my life have been spent working 2 jobs, paying off the suppliers I used to work on Estridge jobs and just struggling to survive. Shame on you Paul...and shame on you IBJ! Maybe you should have contacted the hundreds of vendors that Paul stiffed. I'm sure your "rises from the ashes" spin on reporting would have contained true stories of real people who have struggled to find work and pay of their debts (something that Paul didn't even attempt to do).

ADVERTISEMENT