Simon Property Group, Inc.’s (SPG Quick QuoteSPG - Free Report) fourth-quarter 2024 funds from operations (FFO) per share of $3.68 surpassed the Zacks Consensus Estimate of $3.40. This compares to an FFO of $3.69 per share a year ago.

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Results reflect an increase in revenues, backed by a rise in the base minimum rent per square foot and occupancy levels. SPG issued its guidance for 2025 FFO per share.

Simon Property generated revenues of $1.58 billion in the quarter, which surpassed the Zacks Consensus Estimate of $1.55 billion. The reported figure increased 3.6% year over year.

According to David Simon, the chairman, CEO and president of Simon Property Group, "We executed over 21 million square feet of leases, opened a fully-leased, new Premium Outlet in the U.S., delivered 16 significant redevelopment projects, including an expansion of a leading Premium Outlet in South Korea, and strengthened our industry-leading balance sheet.”

For 2024, Simon Property reported an FFO per share of $12.99, outpacing the Zacks Consensus Estimate of $12.72. The reported figure improved 3.8% over the prior-year quarter. Total revenues of $5.96 billion surpassed the estimate of $5.93 billion. The figure increased 5.4% year over year.

SPG’s Fourth Quarter in Detail

SPG reported revenues from lease income of $1.43 billion, 5.1% higher than the prior-year period’s figure. Our estimate was pegged at $1.39 billion.

As of Dec. 31, 2024, the occupancy for the U.S. Malls and Premium Outlets portfolio came in at 96.5%, up 70 basis points from 95.8% as of Dec. 31, 2023. We projected the metric to be 95.9%.

The base minimum rent per square foot for the U.S. Malls and Premium Outlets portfolio was $58.26 as of Dec. 31, 2024, rising from $56.82 as of Dec. 31, 2023. This reflected an increase of 2.5%.

Domestic property net operating income (NOI) increased 4.4% year over year, and portfolio NOI ascended 4.5%.

Balance Sheet Position of SPG

Simon Property exited the fourth quarter of 2024 with $10.1 billion of liquidity. This comprised $2 billion of cash on hand, including its share of joint venture cash and $8.1 billion of available capacity under the company’s revolving credit facilities.

SPG’s Outlook for 2025

For 2025, Simon Property projects FFO per share in the range of $12.40-$12.65. The Zacks Consensus Estimate of $12.44 lies within the guided range.

SPG’s Dividend Update

Concurrent with its fourth-quarter earnings release, Simon Property announced a quarterly common stock dividend of $2.10 for the first quarter of 2025. The dividend will be paid out on March 31 to shareholders of record as of March 10, 2025.

SPG’s Zacks Rank

Currently, SPG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Simon Property Group, Inc. Price, Consensus and EPS Surprise

Simon Property Group, Inc. price-consensus-eps-surprise-chart | Simon Property Group, Inc. Quote

Upcoming Earnings Releases

We now look forward to the earnings releases of other retail REITs like Regency Centers (REG Quick QuoteREG - Free Report) and Kimco Realty (KIM Quick QuoteKIM - Free Report) , slated to report on Feb. 6 and Feb. 7, respectively.

The Zacks Consensus Estimate for Regency Centers’ fourth-quarter 2024 FFO per share is pegged at $1.07, which implies a 4.9% year-over-year increase. REG currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Kimco Realty’s fourth-quarter 2024 FFO per share stands at 42 cents, which indicates 7.7% growth year over year. KIM currently has a Zacks Rank #3 (Hold).

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.