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Simon Property (SPG) Q2 FFO Miss Estimates, Revenues Rise Y/Y
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Simon Property Group, Inc. (SPG - Free Report) reported second-quarter funds from operations (FFO) per share of $2.90, missing the Zacks Consensus Estimate of $2.93. It generated revenues of $1.46 billion in the quarter, which surpassed the Zacks Consensus Estimate of $1.43 billion.
On a year-over-year basis, FFO per share reported a marginal increase, while the top line rose 6.5%.
Simon Property Group, Inc. Price, Consensus and EPS Surprise
SPG’s lease income grew 4.8% year over year to $1.32 billion in the second quarter of 2024. The figure was ahead of our consensus estimate of $1.31 billion.
Other income was $109.3 million, which rose 34.8% year over year. The figure came in above our consensus estimate of $91.2 million.
However, management fees and other revenues decreased nearly 1% year over year to $33.2 million. The figure was higher than our consensus estimate of $33 million.
Occupancy & Base Minimum Rent Rise
As of Jun 30, 2024, the ending occupancy for the U.S. Malls and Premium Outlets portfolio for its consolidated assets stood 95.6%, up 90 basis points from 94.7% as of Jun 30, 2023. The ending occupancy was also higher than our consensus estimate of 95.5%.
Moreover, the base minimum rent per square foot for the U.S. Malls and Premium Outlets portfolio was $57.94 as of Jun 30, 2024, rising from $56.27 as of Jun 30, 2023, reflecting an increase of 3%. The figure was higher than our consensus estimate of $56.63.
Financial Position
Simon Property exited the second quarter of 2024 with $11.2 billion of liquidity. This comprised $3.1 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 now projects FFO per share in the range of $12.80-$12.90, up from the $12.75-$12.90 range guided earlier. The Zacks Consensus Estimate of $12.84 lies within the guided range.
SITE Centers Corp. (SITC - Free Report) reported second-quarter 2024 operating funds from operations per share of 27 cents, which beat the Zacks Consensus Estimate of 24 cents. The figure fell 6.9% year over year.
Results reflected a rise in base rent per square foot and same-store NOI.
Federal Realty Investment Trust’s (FRT - Free Report) second-quarter 2024 FFO per share of $1.69 surpassed the Zacks Consensus Estimate of $1.68. The figure marked a rise of 1.2% from the year-ago quarter’s tally of $1.67.
Results reflected a healthy leasing activity and better-than-expected growth in revenues. The retail REIT also tightened and raised its guidance for 2024 FFO per share and announced a hike in dividends.
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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Simon Property (SPG) Q2 FFO Miss Estimates, Revenues Rise Y/Y
Simon Property Group, Inc. (SPG - Free Report) reported second-quarter funds from operations (FFO) per share of $2.90, missing the Zacks Consensus Estimate of $2.93. It generated revenues of $1.46 billion in the quarter, which surpassed the Zacks Consensus Estimate of $1.43 billion.
On a year-over-year basis, FFO per share reported a marginal increase, while the top line rose 6.5%.
Simon Property Group, Inc. Price, Consensus and EPS Surprise
Simon Property Group, Inc. price-consensus-eps-surprise-chart | Simon Property Group, Inc. Quote
Increase in Lease & Other Income Boosts Revenues
SPG’s lease income grew 4.8% year over year to $1.32 billion in the second quarter of 2024. The figure was ahead of our consensus estimate of $1.31 billion.
Other income was $109.3 million, which rose 34.8% year over year. The figure came in above our consensus estimate of $91.2 million.
However, management fees and other revenues decreased nearly 1% year over year to $33.2 million. The figure was higher than our consensus estimate of $33 million.
Occupancy & Base Minimum Rent Rise
As of Jun 30, 2024, the ending occupancy for the U.S. Malls and Premium Outlets portfolio for its consolidated assets stood 95.6%, up 90 basis points from 94.7% as of Jun 30, 2023. The ending occupancy was also higher than our consensus estimate of 95.5%.
Moreover, the base minimum rent per square foot for the U.S. Malls and Premium Outlets portfolio was $57.94 as of Jun 30, 2024, rising from $56.27 as of Jun 30, 2023, reflecting an increase of 3%. The figure was higher than our consensus estimate of $56.63.
Financial Position
Simon Property exited the second quarter of 2024 with $11.2 billion of liquidity. This comprised $3.1 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 now projects FFO per share in the range of $12.80-$12.90, up from the $12.75-$12.90 range guided earlier. The Zacks Consensus Estimate of $12.84 lies within the guided range.
Currently, SPG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Retail REITs
SITE Centers Corp. (SITC - Free Report) reported second-quarter 2024 operating funds from operations per share of 27 cents, which beat the Zacks Consensus Estimate of 24 cents. The figure fell 6.9% year over year.
Results reflected a rise in base rent per square foot and same-store NOI.
Federal Realty Investment Trust’s (FRT - Free Report) second-quarter 2024 FFO per share of $1.69 surpassed the Zacks Consensus Estimate of $1.68. The figure marked a rise of 1.2% from the year-ago quarter’s tally of $1.67.
Results reflected a healthy leasing activity and better-than-expected growth in revenues. The retail REIT also tightened and raised its guidance for 2024 FFO per share and announced a hike in dividends.
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.