Simon Property Group Inc. saw a smaller profit in its latest quarter, but the nation’s largest mall operator also topped Wall Street expectations on a key industry metric.
The Indianapolis-based real estate investment trust on Wednesday said it had funds from operations of $1.064 billion, or $2.99 per share, in the second quarter. That compares to $1.061 billion, or $2.98 per share, during the same quarter a year ago.
The average estimate of nine analysts surveyed by Zacks Investment Research was for FFO of $2.98 per share.
FFO is a closely watched measure in the REIT industry. It takes net income and adds back items such as depreciation and amortization.
The company reported a profit of $495.3 million, or $1.60 per share. During the same period last year, Simon earned $547 million, or $1.77 per share.
Simon posted revenue of $1.4 billion in the period, also topping Street forecasts. Four analysts surveyed by Zacks expected $1.39 billion.
The company reaffirmed its FFO outlook for the year of $12.30 to $12.40 per share.
Simon said retailer sales at its malls and premium outlets came in at $669 per square foot for the previous 12 months, an increase of 3.5 percent. Occupancy was 94.4 percent as of June 30.
The firm also announced a quarterly dividend of $2.10 per share, up 5 percent year-over-year, be paid on Aug. 30, to stockholders of record as of Aug. 16.
Shares of the company were trading at $161.16 early Wednesday, up 95 cents from Tuesday’s closing price. The company’s shares have declined nearly 5% since the beginning of the year and about 7% in the last 12 months.