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Simon Property Group, Inc.’s SPG fourth-quarter 2024 funds from operations (FFO) per share of $3.68 surpassed the Zacks Consensus Estimate of $3.40. This compares to an FFO of $3.69 per share a year ago.
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Results reflect an increase in revenues, backed by a rise in the base minimum rent per square foot and occupancy levels. SPG issued its guidance for 2025 FFO per share.
Simon Property generated revenues of $1.58 billion in the quarter, which surpassed the Zacks Consensus Estimate of $1.55 billion. The reported figure increased 3.6% year over year.
According to David Simon, the chairman, CEO and president of Simon Property Group, "We executed over 21 million square feet of leases, opened a fully-leased, new Premium Outlet in the U.S., delivered 16 significant redevelopment projects, including an expansion of a leading Premium Outlet in South Korea, and strengthened our industry-leading balance sheet.”
For 2024, Simon Property reported an FFO per share of $12.99, outpacing the Zacks Consensus Estimate of $12.72. The reported figure improved 3.8% over the prior-year quarter. Total revenues of $5.96 billion surpassed the estimate of $5.93 billion. The figure increased 5.4% year over year.
SPG’s Fourth Quarter in Detail
SPG reported revenues from lease income of $1.43 billion, 5.1% higher than the prior-year period’s figure. Our estimate was pegged at $1.39 billion.
As of Dec. 31, 2024, the occupancy for the U.S. Malls and Premium Outlets portfolio came in at 96.5%, up 70 basis points from 95.8% as of Dec. 31, 2023. We projected the metric to be 95.9%.
The base minimum rent per square foot for the U.S. Malls and Premium Outlets portfolio was $58.26 as of Dec. 31, 2024, rising from $56.82 as of Dec. 31, 2023. This reflected an increase of 2.5%.
Domestic property net operating income (NOI) increased 4.4% year over year, and portfolio NOI ascended 4.5%.
Balance Sheet Position of SPG
Simon Property exited the fourth quarter of 2024 with $10.1 billion of liquidity. This comprised $2 billion of cash on hand, including its share of joint venture cash and $8.1 billion of available capacity under the company’s revolving credit facilities.
SPG’s Outlook for 2025
For 2025, Simon Property projects FFO per share in the range of $12.40-$12.65. The Zacks Consensus Estimate of $12.44 lies within the guided range.
SPG’s Dividend Update
Concurrent with its fourth-quarter earnings release, Simon Property announced a quarterly common stock dividend of $2.10 for the first quarter of 2025. The dividend will be paid out on March 31 to shareholders of record as of March 10, 2025.