Monday, August 2, 2010

Simon Property's 2Q results grow by 56 percent

Retail property owner Simon Property Group Inc. said Friday its second-quarter results climbed by 56 percent on improved occupancy and increased property sales.

The results topped Wall Street's expectations.

The real estate investment trust said its funds from operations, or FFO, rose to $487.7 million, or $1.38 a share, in the three months ended June 30, from $313.1 million, or 96 cents a share, in the year-ago period.

FFO, which adds such items as amortization and depreciation back to net income, is considered a key measure of strength for real estate investment trusts because it provides a more accurate picture of cash performance.

Net income totaled $152.5 million, compared with a loss of $20.8 million last year.

Quarterly revenue rose 3 percent to $933.6 million from $903.6 million in the previous year. The company said sales for its malls and outlets grew by 4.9 percent year-over-year, and occupancy improved to 93.1 percent from 92.3 percent the year before.

On average, analysts polled by Thomson Reuters expected FFO of $1.34 per share on $917.3 million in revenue.

The REIT also affirmed its full-year FFO guidance between $5.30 and $5.40 per share. Analysts are forecasting 2010 FFO of $5.37 per share.

The company also declared a quarterly dividend of 60 cents per share. It is payable on Aug. 31 to shareholders of record on Aug. 17.

SOURCE: Bloomberg BusinessWeek

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