Simon Property Group raises annual FFO forecast on healthy leasing demand

Simon Property

30/10/2023 20:54

Oct 30 (Reuters) - Simon Property Group (SPG)  SPG.N  on
Monday lifted its annual FFO forecast after topping market
expectations for the third quarter on strong leasing demand and
higher rental rates at the commercial real estate investment
trust's mall spaces.
    SPG, which counts luxury retailer LVMH  LVMH.PA  among its
top tenants, now expects full-year 2023 funds from operations
per share in the range of $12.15 to $12.25, compared with its
earlier forecast of $11.85-$11.95 per share.
    Occupancy at its malls and premium outlets rose 70 basis
points to 95.2%, as against last year, while base minimum rent
per square foot rose by 2.9% to $56.41.
    The company's revenue from lease income was $1.30 billion,
compared to $1.22 billion a year ago, while total revenue came
in at $1.41 billion. Analysts on average estimated revenue of
$1.27 billion, as per LSEG data.
   Funds from operations in the third-quarter rose to $3.20 per
share, from $2.93 per share a year ago. Analysts had expected
FFO of $2.97 per share.

 (Reporting by Juveria Tabassum; Editing by Shailesh Kuber)
 ((Juveria.Tabassum@thomsonreuters.com;))