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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe stock price of Simon Property Group Inc. rose in early-morning trading Tuesday after the company increased its quarterly dividend and its full-year guidance for 2017.
Shares opened at $163 each, up nearly 3 percent from their closing price of $158.50 on Monday.
The Indianapolis-based shopping mall giant reported second-quarter funds from operations of $884.7 million, or $2.47 per share, compared with $952.9 million, or $2.63 per share, in the year-ago period. The second-quarter FFO results included a 36-cent charge on the extinguishment of debt.
The average estimate of seven analysts surveyed by Zacks Investment Research was for FFO of $2.45 per share.
FFO is a closely watched performance measure in the REIT industry that takes profit and adds back items such as depreciation and amortization.
“We produced impressive second quarter results and solid operating metrics," CEO David Simon said in a written statement. “It was a very eventful quarter with the completion of the multi-year transformation of The Galleria in Houston and the opening of four new outlets, including three international centers, as well as the groundbreaking of a new Premium Outlets center in Denver.”
The shopping mall giant reported revenue of $1.36 billion in the period, up slightly from $1.32 billion in the same quarter of 2016. The revenue figure topped Wall Street forecasts. Four analysts surveyed by Zacks expected revenue of $1.33 billion.
Simon reported quarterly profit of $382 million, or $1.23 per share, compared with $455.4 million, or $1.45 per share, in the prior year period. Second-quarter results included a charge of $128.6 million, or 36 cents per share, related to the redemption of senior notes.
Occupancy at Simon’s U.S. malls and outlet centers was 95.2 percent as of June 30, down slightly from 95.9 percent from a year ago. Base minimum rent per square foot was $52.10, up 3.2 percent compared with the prior-year period.
Simon now expects 2017 funds from operations to be $11.14 to $11.22, a 4-cent increase.
The company also declared a quarterly dividend of $1.80 per share, a 9.1 percent year-over-year increase to be paid Aug. 31.
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