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. Angela IS the best RD

  2. We are a nation of speed. All of our younger lives are filled with deadlines, quotas and bottom lines. We start to ease out of the pressured rat-race when we finally see "retirement." The most enjoyable travel on the planet is passenger rail service. Indy to Chicago does not beat Megabus or Southwest Airlines in speed. Passenger rail however has the best seating, mammoth legroon, seat backs that recline to more than 45 degrees and employers that really want you to return as a customer. Indiana municipalities need to maintain subsidies to support this transportation mode. Losing it is loss for all of us.

  3. Good day! I just want to testify how i got my loan from Mr. Eric Lefkofsky after i applied several times from various loan lenders who claimed to also testify right in this forum,i thought the testimonies where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan. Until a friend of mine introduce me to this popular Mr. Eric Lefkofsky who promised to help me and indeed he did as he promised without any form of delay. I never thought there are still reliable loan lenders until i met Mr. Eric lefkofsky who indeed helped me with the loan and changed my belief. I promised to share this testimony after I got my loan. I don't know if you are in any way in need of a genuine and urgent loan,free feel to contact Mr. Eric Lefkofsky via their email{grouponfunding@hotmail.com}

  4. Its a THUG issue. Bleecker Street and NYX are thug bars. They attract thugs of all races. Places that attract thugs need to be kicked out of Broad Ripple. Ain't nobody got time for that!

  5. Hello everyone, My name is Marian Gareth, I am from the Texas, United State, am here to testify of how i got my loan from Mr Andre Frank {frankloancompany@yahoo.com} after i applied Two times from various loan lenders who claimed to be lenders right in this forum,i thought their lending where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan.Until a friend of mine introduce me to Mr Andre Frank the C.E.O of Andre Frank Loan Company who promised to help me with a loan of my desire and he really did as he promised without any form of delay, I never thought there are still reliable loan lenders until i met Mr Andre Frank, who really help me with my loan and changed my lief for better. I don't know if you are in need of an urgent loan, free feel to contact Mr Andre Frank on his email{ Frankloancompany@yahoo.com} for help

ADVERTISEMENT