Yahoo Finance Simon Property (SPG) Q4 FFO Beat Estimates on Higher Revenues
Simon Property Group, Inc.’s SPG 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 and Federal Realty Investment Trust FRT, 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.
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