Funds from operations, which excludes depreciation and land sales, is a common measure of real estate investment trusts like Simon.
Simon's $1.76-per-share results surpassed the $1.66 expected by analysts surveyed by Reuters.
Profit fell nearly 45 percent to $112.9 million due to asset sales and the charge on the Arizona master planned community.
Simon said in December that it had lost $26 million on the joint venture with luxury homebuilder Toll Brothers Inc. The 5,485-acre project had been a test site for Daimler Chrysler Corp.
Simon shares climbed 2.5 percent this morning to $91.64.