Simon Property Group misses quarterly funds from operations estimates

Simon Property

01/11/2024 12:43

Nov 1 (Reuters) - Commercial real estate investment
trust Simon Property Group  SPG.N  missed market expectations
for third-quarter funds from operations (FFO) on Friday, hurt by
softer leasing demand at its  mixed-use shopping centers.
    The company reported FFO, a key measure of performance of a
REIT, of $2.84 per share for the quarter ended Sept. 30 down
from $3.20 per share a year earlier and below estimates of $3.03
per share, according to data compiled by LSEG.
    In contrast, fellow REIT Kimco Realty  KIM.N  lifted its
annual funds from operations target on strong leasing demand at
its grocery-anchored retail centers.
    Despite the FFO miss, SPG's reported third-quarter revenue
from lease income slightly exceeded market expectations,
reaching $1.34 billion against projections of $1.33 billion.
        The company reported occupancy levels at its malls and
premium outlets increasing by 1% year-over-year to 96.2%, while
base minimum rent rose by 2.3% to $57.71, up from $56.41 in
2023.
  
        SPG's shares were down about 1% in premarket trading.
They've risen about 20% so far this year. 
  

 (Reporting by Juveria Tabassum; Editing by Tasim Zahid)
 ((Juveria.Tabassum@thomsonreuters.com;))