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Simon Property (SPG) Q4 FFO Beats Estimates, Revenues Lag
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Simon Property Group, Inc.’s (SPG - Free Report) fourth-quarter 2021 funds from operations (FFO) per share of $3.09 exceeded the Zacks Consensus Estimate of $2.88.
This performance was backed by occupancy and net operating income (NOI) growth.
Simon Property generated revenues of $1.33 billion during the quarter, lagging the Zacks Consensus Estimate of $1.35 billion.
The quarterly FFO per share also compares unfavorably with the year-ago figure of $2.17. Revenues increased 17.2% year over year.
For 2021, Simon Property reported FFO per share of $11.94, up 31.1% from the prior year’s $9.11. The same also beat the Zacks Consensus Estimate of $11.73. Total revenues of $5.1 billion jumped 11.1% year over year.
Inside the Headlines
For the U.S. Malls and Premium Outlets portfolio, occupancy was 93.4% as of Dec 31, 2021, expanding 210 basis points (bps) year over year. Base minimum rent per square feet was $53.91 as of Dec 31, 2021.
Domestic property NOI increased 22.4% year over year. Portfolio NOI comprising NOI from domestic properties, international properties and NOI from its investment in Taubman Realty Group climbed 33.6% from the prior-year period’s figure.
Balance Sheet Position
Simon Property exited fourth-quarter 2021 with $7 billion of liquidity. This comprised $1.2 billion of cash on hand, including its share of joint-venture cash, $5.8 billion of available capacity under the company’s revolving credit facilities, net of $500 million outstanding under the U.S. commercial paper program.
Outlook
Simon Property issued the 2022 FFO per share guidance of $11.50-$11.70. The Zacks Consensus Estimate of $11.69 falls within the range.
Dividend
Simon Property announced its first-quarter 2022 dividend of $1.65 per share, payable Mar 31, to its shareholders of record as of Mar 10, 2022. SPG paid out its fourth-quarter dividend of $1.65 per share in cash on Dec 31, marking a hike of 10%, sequentially, and 26.9%, year over year.
Currently, Simon Property carries a Zacks Rank #4 (Sell).
Simon Property Group, Inc. Price, Consensus and EPS Surprise
We now look forward to the earnings releases of other retail REITs like Federal Realty Investment Trust (FRT - Free Report) , Kimco Realty Corporation (KIM - Free Report) and Regency Centers Corporation (REG - Free Report) , slated to be out this week only.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Simon Property (SPG) Q4 FFO Beats Estimates, Revenues Lag
Simon Property Group, Inc.’s (SPG - Free Report) fourth-quarter 2021 funds from operations (FFO) per share of $3.09 exceeded the Zacks Consensus Estimate of $2.88.
This performance was backed by occupancy and net operating income (NOI) growth.
Simon Property generated revenues of $1.33 billion during the quarter, lagging the Zacks Consensus Estimate of $1.35 billion.
The quarterly FFO per share also compares unfavorably with the year-ago figure of $2.17. Revenues increased 17.2% year over year.
For 2021, Simon Property reported FFO per share of $11.94, up 31.1% from the prior year’s $9.11. The same also beat the Zacks Consensus Estimate of $11.73. Total revenues of $5.1 billion jumped 11.1% year over year.
Inside the Headlines
For the U.S. Malls and Premium Outlets portfolio, occupancy was 93.4% as of Dec 31, 2021, expanding 210 basis points (bps) year over year. Base minimum rent per square feet was $53.91 as of Dec 31, 2021.
Domestic property NOI increased 22.4% year over year. Portfolio NOI comprising NOI from domestic properties, international properties and NOI from its investment in Taubman Realty Group climbed 33.6% from the prior-year period’s figure.
Balance Sheet Position
Simon Property exited fourth-quarter 2021 with $7 billion of liquidity. This comprised $1.2 billion of cash on hand, including its share of joint-venture cash, $5.8 billion of available capacity under the company’s revolving credit facilities, net of $500 million outstanding under the U.S. commercial paper program.
Outlook
Simon Property issued the 2022 FFO per share guidance of $11.50-$11.70. The Zacks Consensus Estimate of $11.69 falls within the range.
Dividend
Simon Property announced its first-quarter 2022 dividend of $1.65 per share, payable Mar 31, to its shareholders of record as of Mar 10, 2022.
SPG paid out its fourth-quarter dividend of $1.65 per share in cash on Dec 31, marking a hike of 10%, sequentially, and 26.9%, year over year.
Currently, Simon Property carries a Zacks Rank #4 (Sell).
Simon Property Group, Inc. Price, Consensus and EPS Surprise
Simon Property Group, Inc. price-consensus-eps-surprise-chart | Simon Property Group, Inc. Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We now look forward to the earnings releases of other retail REITs like Federal Realty Investment Trust (FRT - Free Report) , Kimco Realty Corporation (KIM - Free Report) and Regency Centers Corporation (REG - Free Report) , slated to be out this week only.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.