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Simon Property (SPG) Q4 FFO Beat Estimates on Higher Revenues
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Simon Property Group, Inc.’s (SPG - Free Report) fourth-quarter 2023 funds from operations (FFO) per share of $3.69 surpassed the Zacks Consensus Estimate of $3.34. Revenues of $1.53 billion outpaced the Zacks Consensus Estimate of $1.46 billion.
Its FFO per share reported an 8.5% increase year over year. Revenues rose 9.1% year over year.
For the full-year 2023, the FFO per share came in at $12.51, higher than the prior-year tally of $11.95, beating the Zacks Consensus Estimate of $12.16. This was backed by 6.9% growth in revenues to $5.66 billion.
Simon Property Group, Inc. Price, Consensus and EPS Surprise
SPG’s revenues from lease income grew 5.9% year over year to nearly $1.36 billion in the fourth quarter of 2023. The figure was slightly higher than our estimate of $1.35 billion. The uptick was driven by a rise in fixed lease income, partially offset by variable lease income.
Management fees and other revenues increased 5.1% year over year to $33.5 million. The figure was higher than our estimate of $32 million.
Other income was $131.5 million, which rose 62.5% year over year. The figure was higher than our estimate of $98.7 million.
Non-Financial Metrics
As of Dec 31, 2023, the ending occupancy for the U.S. Malls and Premium Outlets portfolio for its consolidated assets stood at 95.7%, up 80 basis points from 94.9% as of Dec 31, 2022. The ending occupancy was also higher than our estimate of 95.35%.
Moreover, the base minimum rent per square foot for the U.S. Malls and Premium Outlets portfolio was $56.82 as of Dec 31, 2023, rising from $55.13 as of Dec 31, 2022, reflecting an increase of 3.1%. The figure was higher than our estimate of $56.51.
Financial Position
Simon Property exited the fourth quarter of 2023 with $10.9 billion of liquidity. This comprised $2.8 billion of cash in hand, including its share of joint-venture cash and $8.1 billion of available capacity under the company’s revolving credit facilities.
Outlook
For 2024, Simon Property projects FFO per share in the range of $11.85-$12.10. This is lower than the Zacks Consensus Estimate of $12.17.
Currently, SPG carries a Zacks Rank #3 (Hold).
Upcoming Earnings Releases
We now look forward to the earnings releases of other retail REITs like Regency Centers Corporation (REG - Free Report) and Federal Realty Investment Trust (FRT - Free Report) , which are slated to report on Feb 8 and Feb 12, respectively.
The Zacks Consensus Estimate for FRT’s fourth-quarter 2023 FFO per share is pegged at $1.64, suggesting a year-over-year increase of 3.8%. FRT currently carries a Zacks Rank #3.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Simon Property (SPG) Q4 FFO Beat Estimates on Higher Revenues
Simon Property Group, Inc.’s (SPG - Free Report) fourth-quarter 2023 funds from operations (FFO) per share of $3.69 surpassed the Zacks Consensus Estimate of $3.34. Revenues of $1.53 billion outpaced the Zacks Consensus Estimate of $1.46 billion.
Its FFO per share reported an 8.5% increase year over year. Revenues rose 9.1% year over year.
For the full-year 2023, the FFO per share came in at $12.51, higher than the prior-year tally of $11.95, beating the Zacks Consensus Estimate of $12.16. This was backed by 6.9% growth in revenues to $5.66 billion.
Simon Property Group, Inc. Price, Consensus and EPS Surprise
Simon Property Group, Inc. price-consensus-eps-surprise-chart | Simon Property Group, Inc. Quote
Solid Revenues
SPG’s revenues from lease income grew 5.9% year over year to nearly $1.36 billion in the fourth quarter of 2023. The figure was slightly higher than our estimate of $1.35 billion. The uptick was driven by a rise in fixed lease income, partially offset by variable lease income.
Management fees and other revenues increased 5.1% year over year to $33.5 million. The figure was higher than our estimate of $32 million.
Other income was $131.5 million, which rose 62.5% year over year. The figure was higher than our estimate of $98.7 million.
Non-Financial Metrics
As of Dec 31, 2023, the ending occupancy for the U.S. Malls and Premium Outlets portfolio for its consolidated assets stood at 95.7%, up 80 basis points from 94.9% as of Dec 31, 2022. The ending occupancy was also higher than our estimate of 95.35%.
Moreover, the base minimum rent per square foot for the U.S. Malls and Premium Outlets portfolio was $56.82 as of Dec 31, 2023, rising from $55.13 as of Dec 31, 2022, reflecting an increase of 3.1%. The figure was higher than our estimate of $56.51.
Financial Position
Simon Property exited the fourth quarter of 2023 with $10.9 billion of liquidity. This comprised $2.8 billion of cash in hand, including its share of joint-venture cash and $8.1 billion of available capacity under the company’s revolving credit facilities.
Outlook
For 2024, Simon Property projects FFO per share in the range of $11.85-$12.10. This is lower than the Zacks Consensus Estimate of $12.17.
Currently, SPG carries a Zacks Rank #3 (Hold).
Upcoming Earnings Releases
We now look forward to the earnings releases of other retail REITs like Regency Centers Corporation (REG - Free Report) and Federal Realty Investment Trust (FRT - Free Report) , which are slated to report on Feb 8 and Feb 12, respectively.
The Zacks Consensus Estimate for REG’s fourth-quarter 2023 FFO per share is pegged at $1.02, implying a year-over-year increase of 4.1%. REG currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FRT’s fourth-quarter 2023 FFO per share is pegged at $1.64, suggesting a year-over-year increase of 3.8%. FRT currently carries a Zacks Rank #3.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO), a widely used metric to gauge the performance of REITs.