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Simon Property Q2 FFO Rises, Above Estimates; Lifts FY13 Forecast


Simon Property Group Inc. (SPG), a Real Estate Investment Trust, which primarily invests in malls and outlets, Monday posted higher Funds From Operations in its second quarter, benefited by improved revenues. Earnings also beat Wall Street analysts' estimates. Citing good results, the company raised its full-year earnings view again.

Chairman and Chief Executive Officer David Simon said, "This was an excellent quarter for Simon Property Group, with strong financial and operational performance, the opening of two new Premium Outlet Centers, the groundbreaking for our second Premium Outlet in Canada, and the acquisition of a highly productive center. Our portfolio continued to deliver strong results in the quarter, with 5.9 percent growth in comparable property net operating income for our U.S. Malls and Premium Outlets."

For the second quarter, funds from operations or FFO was $766.3 million, higher than last year's $688.8 million. FFO per share improved 11.6 percent to $2.11 from $1.89 in the prior year.

On average, 22 analysts polled by Thomson Reuters expected the company to report $2.07 per share profit for the quarter. Analysts' estimates typically exclude one-time items.

Net income attributable to common stockholders totaled $339.94 million or $1.10 per share, higher than $215.45 million or $0.71 per share last year.

Total quarterly revenue grew to $1.24 billion, from $1.19 billion reported a year back. Analysts estimated revenues of $1.24 billion for the quarter.

During the period, minimum rent revenues increased to $778.16 million from last year's $746.20 million. Tenant reimbursements grew to $353.16 million from $330.47 million a year ago.

Further, the company said its board declared a quarterly dividend of $1.15 per share, payable on August 30 to stockholders of record on August 16. It also declared the quarterly dividend on its 8 3/8 percent Series J Cumulative Redeemable Preferred Stock of $1.046875 per share, payable on September 30 to stockholders in the register as of September 16.

Looking ahead, for fiscal year 2013, Simon Property now expects FFO within a range of $8.60 - $8.70 per share and net income within $3.98 - $4.08 per share range. Analysts project full-year earnings of $8.67 per share. Previously, 2013 FFO was estimated to lie between $8.50 and $8.60 per share and net income between $3.70 and $3.80 per share, which was revised up in April, while announcing its first quarter results.

Simon Property shares closed Friday's trading at $164.54, up $0.75 or 0.46 percent.

by RTTNews Staff Writer

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