Simon Property Group lowers annual forecast for net income, misses second-quarter FFO

Simon Property

05/08/2024 23:00

Aug 5 (Reuters) - Simon Property Group  SPG.N  lowered
annual forecast for net income and missed second-quarter
estimates for funds from operations (FFO) on Monday.
    Demand for Real Estate Investment Trusts (REITs), like Simon
Property, faltered as inflation-weary consumers kept a tight lid
on spending and pressured expansion plans of real estate tenants
such as restaurants and retailers.
   Simon Property has a diverse portfolio of tenants comprising
apparel giants such as Lululemon  LULU.O , Nike  NKE.N ,
restaurants like Cheesecake Factory  CAKE.O  and other luxury
brands.
    The commercial REIT now expects annual net income
attributable to shareholders in the range of $7.37 to $7.47 per
share, compared with its prior forecast of $7.38 to $7.53 per
share.
    For the quarter, the company reported FFO of $2.90 per
share, below analysts' estimate of $2.94 per share, according to
LSEG data. 
    The REIT, however, lifted the lower end of its annual FFO
forecast, from the earlier $12.75 to $12.90 per share, to
between $12.80 and $12.90 per share.
    It also posted revenue of $1.46 billion in the quarter ended
June 30, compared with analysts' average estimate of $1.30
billion.

 (Reporting by Anuja Bharat Mistry in Bengaluru; Editing by
Mohammed Safi Shamsi)
 ((AnujaBharat.Mistry@thomsonreuters.com;))