Simon Property Group Earnings Cheat Sheet: FFO Rises

S&P 500 (NYSE:SPY) component Simon Property Group Inc. (NYSE:SPG) reported its results for the fourth quarter. Simon Property Group operates as a real estate investment trust that owns, develops and manages retail real estate properties.

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Simon Property Group Earnings Cheat Sheet for the Fourth Quarter

Results: The company’s funds from operations (FFO) rose 6.1% from the year earlier quarter to $1.91. FFO, a measure of performance of a real estate investment trust (REIT), removes the profit-reducing effect that depreciation has on earnings. It come in ahead of the consensus estimate of $1.90 per share. FFO, a measure of performance of a real estate investment trust (REIT), removes the profit-reducing effect that depreciation has on earnings.

Quoting Management: “Our portfolio of high quality assets continues to demonstrate strength as our regional malls and Premium Outlets generated comparable property net operating income growth of 4.5% in the quarter,” said David Simon, Chairman and Chief Executive Officer. “Occupancy in the portfolio was 30 basis points higher than one year ago and our tenants reported a robust increase in sales of 10.7%. Financing activities during the quarter enhanced our industry leading balance sheet and the ramping up of development and redevelopment activities positions us to continue to deliver strong results for our stockholders. Given our results in 2011 and our current view of 2012, we are also pleased to announce an increase in our quarterly dividend to $0.95 per share from $0.90.”

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from $1.70 per share to $1.69, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate hasn’t changed from $6.87 per share for the fiscal year.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com