Simon Property tops expectations for quarterly FFO

Simon Property

05/02/2024 22:20

Feb 5 (Reuters) - Simon Property Group  SPG.N  topped
market expectations for fourth-quarter funds from operations
(FFO) on Monday, as the commercial real estate investment trust
(REIT) benefited from strong leasing demand at its malls and
shopping centers.
    Simon Property Group is a REIT engaged in the ownership of
shopping, dining and entertainment destinations. Its biggest
tenants include LVMH  LVMH.PA , top luxury brand and owner of
Louis Vuitton, Christian Dior, Hennessy and Tiffany & Co, among
others.
    Simon Property's fourth-quarter FFO, a key measure of
performance of a REIT, rose 8.5% from a year ago to $3.69 per
share, beating LSEG estimates of $3.34 per share.
    The company's occupancy level at its malls and premium
outlets was 95.8% at Dec. 31, up 90 basis points from a year
ago. Base minimum rent per square foot was $56.82 at Dec. 31, a
rise of 3.1% over the year earlier.
    Its shares, which gained 21.5% in 2023, were up about 1% in
extended trading.
    The company expects FFO per share to be in the range of
$11.85 to $12.10 for the year ending Dec. 31, 2024, versus
analysts' expectations of $12.20. It reported FFO at $12.51 per
share for 2023.
        

 (Reporting by Juveria Tabassum; Editing by Shilpi Majumdar)
 ((Juveria.Tabassum@thomsonreuters.com;))