Yahoo Finance Simon Property Group’s 4Q15 Earnings Pressured Stock Performance
Simon Property Group Reported Lackluster 4Q15 Earnings
Simon Property Group’s earnings review
The largest US retail REIT (real estate investment trust), Simon Property Group (SPG) reported its 4Q15 earnings on January 29, 2016. The company’s EPS (earnings per share) for 4Q15 was $1.27, higher than the consensus estimate of $1.16.
Its FFO (funds from operations) per share for 4Q15 was $2.40, higher than the consensus estimate of $2.38. Simon’s revenue of $799.1 million was lower than the consensus estimate of $1.4 billion. The company recorded a 6.5% increase in net operating income year-over-year to $1.53 billion.
Negative market reaction
Markets reacted negatively to Simon Property Group’s 4Q15 earnings. The stock price declined 0.7% soon after the earnings were released. Eventually, the stock closed at $186.30, down 0.3% from the previous day’s closing.
Recently, Simon Property Group (SPG) has experienced subdued stock performance. Year-to-date (or YTD), shares have declined 3.2%. During the last month, the stock was down 4.9%. Of the major apartment REITs, General Growth Properties (GGP) witnessed a 3% decline in its stock this year.
On the other hand, Macerich (MAC) and Taubman Centers (TCO) have experienced decent performance, with YTD returns of 3.4% and 1%, respectively. Similarly, the SPDR DJ Wilshire REIT ETF (RWR) declined by 4% year-to-date.
Series overview
In this series, we’ll explore Simon Property Group’s 4Q15 earnings in detail. We’ll discuss what factors could drive its earnings in the coming quarters. We’ll also cover the key points from the company’s 4Q15 earnings conference call.
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