Simon Property Group Inc. (SPG) on Friday posted a 66.5 percent climb in fourth-quarter profit, while funds from operations increased 6.3 percent and topped Street projections driven by higher revenues. Looking ahead, the company projects lower net income, but higher FFO for fiscal 2012. The real estate company also lifted its quarterly dividend.
Fourth-quarter net income attributable to common stockholders was $362.93 million, compared to $217.92 million a year ago. Earnings per share surged 67.6 percent to $1.24 from $0.74 a year ago.
Fourth-quarter funds from operations, or FFO, was $678.9 million or $1.91 per share, higher than last year's $638.7 million or $1.80 per share.
On average, twenty-one analysts polled by Thomson Reuters estimated earnings of $1.90 per share. Analysts' estimates usually exclude special items.
Quarterly revenues improved to $1.17 billion from $1.12 billion last year, beating analysts' consensus estimate of $1.16 billion.
For the quarter, minimum rent revenues improved to $706.10 million from $672.61 million a year earlier. Revenues from Overage rent, Tenant reimbursements as well as management fees and other revenues also increased in the quarter.
Chairman and Chief Executive Officer David Simon stated that the company's portfolio of high quality assets continues to demonstrate strength as its regional malls and Premium Outlets generated comparable property net operating income growth of 4.5 percent in the quarter.
David Simon added, "Occupancy in the portfolio was 30 basis points higher than one year ago and our tenants reported a robust increase in sales of 10.7 percent."
For fiscal 2011, the company's net income per share grew 65.7 percent to $3.48 and FFO per share rose 37 percent to $6.89. On an adjusted basis, FFO grew 14.3 percent. Annual sales increased to $4.30 billion from prior year's $3.96 billion.
Looking ahead, Simon Property anticipates 2012 net income in a range of $3.28 to $3.38 per share and FFO in a range of $7.20 to $7.30 per share. Analysts currently estimate earnings of $7.28 per share.
Citing its 2011 results as well as current view of 2012, the company also said its Board has recommended a 5.6 percent increase in quarterly dividend to $0.95 per share. The dividend has a pay date of February 29 and record date of February 15.
SPG shares closed Thursday's regular trading session at $137.45, up $0.95 or 0.70 percent.
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