Simon Property Group (SPG) pops as Q4 results top estimates

Simon Property Group (NYSE: SPG) stock rose 1.6% in after-hours trading Monday after the company unveiled better-than-anticipated earnings and revenue for the fiscal fourth quarter.

Specifically, the real estate investment trust posted fourth-quarter earnings per share (EPS) of $2.29, beating the consensus projection of $1.88. Revenue came in at $1.53 billion, while analysts were looking for $1.38 billion.

Net income attributable to common stockholders was reported at $747.5 billion, compared to $673.8 million in 2022.

Funds from operations (FFO) stood at $1.38 billion, or $3.69 per diluted share, compared to $1.27 billion, or $3.40 per diluted share in the year-ago period.

Domestic property net operating income (NOI) grew 7.3%.

As of December 31, 2023, the occupancy rate reached 95.8%, marking an increase of 90 basis points from 94.9% on December 31, 2022.

The base minimum rent per square foot rose to $56.82 at the end of 2023, up 3.1% from $55.13 at the end of the previous year. However, the reported retailer sales per square foot for the trailing 12 months ending December 31, 2023, saw a slight decline of 1.3%, amounting to $743, compared to the sales figures in 2022.

Looking ahead, Simon Property Group expects full-year EPS in the range of $6.45 to $6.70, compared to $6.31 expected by Wall Street.

The company sees FFO in the range of $11.85 to 12.10 for the year.

SPG also announced a quarterly dividend payout of $1.95 per share, which annualizes to $7.8. This dividend is scheduled for payment on March 29, 2024, to shareholders who are on record as of March 8, 2024. The ex-dividend date is set for March 7, 2024.

The dividend's annual yield is 5.7%.

By Vahid Karaahmetovic

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