Published on 2 Nov 2021 on Zacks via Yahoo Finance

Simon Property (SPG) Beats on Q3 FFO, Ups '21 View, Hikes Dividend

Simon Property Group, Inc.’s SPG third-quarter 2021 funds from operations (FFO) per share of $3.13 handily exceeded the Zacks Consensus Estimate of $2.47.This performance was backed by better-than-expected top-line growth. The retail REIT behemoth also raised the 2021 FFO per share outlook based on its results in the year so far and expectations for the rest of the year. It also announced a hike in the quarterly dividend.According to David Simon, chairman, chief executive officer and president, "Demand for our space from a broad spectrum of tenants is growing. Occupancy gains continued, retailer sales accelerated, including our owned brands, and cash flow increased.”The company generated revenues of $1.29 billion during the quarter, surpassing the Zacks Consensus Estimate of $1.23 billion.The quarterly FFO per share also compares favorably with the year-ago figure of $2.05, and revenues increased 22.2%, year on year.

Inside the Headline Numbers

For the U.S. Malls and Premium Outlets portfolio, occupancy was 92.8% as of Sep 30, 2021, expanding 140 basis points (bps) year on year. Base minimum rent per square feet was $53.91 as of Sep 30, 2021, down 4% year on year.Domestic property net operating income (NOI) increased 24.5%, year on year. Portfolio NOI, which comprises NOI from domestic properties, international properties and NOI from its investment in Taubman Realty Group, climbed 34.3% from the prior-year period.