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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowSimon Property Group Inc. on Thursday raised it outlook for the rest of the year after surpassing analyst expectations in a key quarterly performance category for real estate investment trusts.
The Indianapolis-based shopping mall giant reported third-quarter funds from operations of $3.05 per share, up 5.5 percent from the same quarter a year ago. The figure exceeded the prediction of $3.02 by analysts for Zacks Investment Research.
Funds from operations, or FFO, is a closely watched measure in the REIT industry that takes profit and adds back items such as depreciation and amortization.
The company now predicts 2018 FFO in the range of $12.09 to $12.13 per share, compared with prior guidance of $12.05 to $12.13.
The company said profit in the quarter came in at $556.3 million, or $1.80 per share. That’s up from $513.8 million, or $1.65 per share, in the third quarter of 2017.
Simon reported quarterly revenue of $1.41 billion, up from $1.4 billion in the year-ago period. It missed the Zacks consensus estimate of $1.42 billion.
The company also reported:
— Retailer sales per square foot for the previous year ended June 30 of $646, an increase of 4.6 percent;
— Occupancy of 94.7 percent as of June 30;
— Base minimum rent per square foot of $53.84 as of June 30, an increase of 3.3 percent compared to the prior-year period.
Simon shares rose 1.9 percent Thursday morning, to $177.37 each.
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