Post Earnings Coverage as Simon Property Group's FFO Grew 4.2%; Announced a 9.4% Increase in Dividend
ACCESS Newswire
Upcoming AWS Coverage on Weingarten Realty Investors Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 8, 2017 / Active Wall St. announces its post-earnings coverage on Simon Property Group, Inc. (NYSE: SPG) ("SPG"). The Company announced its first quarter fiscal 2017 results on April 27, 2017. The world's largest publicly traded real estate Company exceeded sales expectations and reaffirmed FY17 earnings and FFO guidance. Register with us now for your free membership at:
One of Simon Property Group's competitors within the REIT - Retail space, Weingarten Realty Investors (NYSE: WRI), announced on April 24, 2017, the results of its operations for the quarter ended March 31, 2017. AWS will be initiating a research report on Weingarten Realty Investors in the coming days.
Today, AWS is promoting its earnings coverage on SPG; touching on WRI. Get our free coverage by signing up to:
For the three months ended March 31, 2017, SPG generated revenue of $1.35 billion compared to $1.34 billion in Q1 2016, which topped analysts' consensus of $1.32 billion.
For Q1 2017, SPG's net income attributable to common stockholders was $477.7 million, or $1.53 per diluted share, compared to $481.0 million, or $1.55 per diluted share, in Q1 2016. The prior year's same period included gains of $22.7 million, or $0.06 per diluted share, related to acquisition and disposition activity. The Company's FFO was $985.0 million, or $2.74 per diluted share, for the reported quarter, up 4.2% compared to $951.8 million, or $2.63 per diluted share, in the prior year's comparable period. SPG's FFO numbers came in below market estimates of $2.76 per share.
US Malls and Premium Outlets Operating Statistics
As of March 31, 2017, SPG's occupancy was 95.6%, unchanged from March 31, 2016. The Company's base minimum rent per square foot was $51.87 at March 31, 2017, an increase of 4.4% on a y-o-y basis. SPG's leasing spread per square foot for the trailing 12-months ended March 31, 2017, surged 13.0% to $8.31.
Portfolio NOI and Comparable Property NOI
SPG's total portfolio Net Operating Income ("NOI") growth for Q1 2017 was 5.6%. Total portfolio NOI includes comparable property NOI, NOI from new development, redevelopment, expansion and acquisitions, NOI from international properties and the Company's share of NOI from investments. SPG's comparable property NOI growth for the reported quarter was 3.8%.
Development Activity
Subsequent to quarter end, SPG opened two new outlet developments. On April 06, 2017, the Company opened Siheung Premium Outlets, in Siheung (Seoul), South Korea, a 452,000-square foot center offering more than 200 domestic and international brands. Siheung Premium Outlets is the Company's fourth outlet center in South Korea. Simon owns a 50% interest in this center. On April 13th, 2017, SPG opened Provence Designer Outlet, in Provence, France. SPG owns a 90% interest in this center.
Financing Activity
During Q1 2017, SPG amended and extended its $4.0 billion unsecured multi-currency revolving credit facility. This facility can be increased to $5.0 billion during its term, which will initially mature on June 30, 2021, and can be extended for an additional year to June 30, 2022 at our sole option. The pricing on the facility was reduced to LIBOR plus 77.5 basis points.
The Company closed on two mortgage loans totaling approximately $269 million, of which SPG's share is $186 million. The weighted average interest rate and weighted average term on these loans is 2.40% and 5.0 years, respectively. As of March 31, 2017, SPG had over $7.0 billion of liquidity consisting of cash on hand, including its share of joint venture cash, and available capacity under its revolving credit facilities.
Common Stock Repurchase Program
During Q2 FY17, SPG's Board of Directors authorized a two-year extension of its $2.0 billion common stock repurchase program that had previously been announced on April 02, 2015. The extended common stock repurchase program will expire on March 31, 2019. During the quarter ended March 31, 2017, the Company repurchased 870,692 shares of its common stock.
Dividends
SPG's Board of Directors declared a quarterly common stock dividend of $1.75 per share, up 9.4% on a y-o-y basis. The dividend will be payable on May 31, 2017, to stockholders of record on May 17, 2017. The Company's Board of Directors also declared the quarterly dividend on its 8 3/8% Series J Cumulative Redeemable Preferred Stock of $1.046875 per share, payable on June 30, 2017, to stockholders of record on June 16, 2017.
Guidance
SPG reiterated its previous financial guidance and continues to estimate FY17 net income to be within the range of $6.50 to $6.60 per diluted share and is projecting FFO within the band of $11.45 to $11.55 per diluted share.
Stock Performance
At the close of trading session on Friday, May 05, 2017, Simon Property's stock price marginally declined 0.54% to end the day at $164.52. A total volume of 1.66 million shares were exchanged during the session. The Company's shares are trading at a PE ratio of 28.02 and have a dividend yield of 4.25%. The stock currently has a market cap of $51.44 billion.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
