Post Earnings Coverage as Simon Property Group Tops FFO and Revenue Expectations

Upcoming AWS Coverage on General Growth Properties Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 4, 2016 / Active Wall St. announces its post-earnings coverage on Simon Property Group Inc. (NYSE: SPG) (“SPG”). The company reported its financial results for the third quarter fiscal 2016 on October 26, 2016. The world’s largest publicly traded real estate company surpassed Wall Street’s expectations assisted by improved occupancy and rent rates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Simon Property Group’s competitors within the REIT – Retail space, General Growth Properties, Inc. (NYSE: GGP), reported results on November 01st, 2016, for the three and nine months ended September 30, 2016. AWS will be initiating a research report on General Growth Properties in the coming days.

Today, AWS is promoting its earnings coverage on SPG; touching on stock like GGP. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=SPG

http://www.activewallst.com/registration-3/?symbol=GGP

Earnings Reviewed

For the three months ended on September 30th, 2016, SPG reported that net income attributable to common stockholders was $504.7 million, or $1.61 per diluted share, as compared to $420.0 million, or $1.36 per diluted share, in the prior year’s period. The company’s Funds from Operations (“FFO”) were $976.0 million, or $2.70 per diluted share, as compared to $918.7 million, or $2.54 per diluted share, in the prior year’s period, an increase of 6.3%. Analysts were expecting FFO of $2.68 per share for the quarter. The company generated revenues of $1.36 billion compared to the year earlier revenue figure of $1.32 billion. Revenues for the reported quarter topped analysts’ forecasts of $1.35 billion.

Operating Statistics

SPG noted that occupancy was 96.3% at September 30, 2016, compared to 96.1% at September 30, 2015. The company noted that base minimum rent per square foot increased 4.5% to $50.76 at September 30, 2016, compared to the prior year’s period. SPG’s releasing spread per square foot for the trailing 12-months ended September 30, 2016, was $6.71, higher by 10.9%. SPG reported that total portfolio NOI growth for the nine months ended September 30, 2016, was 7.3%. Comparable property NOI growth for the nine months ended September 30, 2015 was 3.5%.

Development Activity

During Q3 2016, SPG completed the transformation of King of Prussia, which includes the completion of a 155,000 square foot expansion that connects the Plaza and the Court. The expansion adds 50 new retail and dining storefronts and increases the mall’s footprint to 2.6 million square feet.

The company stated that during Q4 2016, it will open two significant new development projects. On October 27th, 2016, Clarksburg Premium Outlets will open with 392,000 square feet of high-quality, name brand stores. SPG owns a 66% interest in this center. On November 3rd, the 500,000 square foot retail component to Brickell City Centre in Miami, Florida will open. SPG owns a 25% interest in this center. SPG will lease and manage this center.

Dividends

SPG’s Board of Directors declared a quarterly common stock dividend of $1.65 per share. The dividend will be payable on November 30th, 2016, to stockholders of record on November 16th, 2016. The Company will pay $6.50 per share in common stock dividends in 2016; a 7.4% increase on y-o-y basis. SPG’ Board of Directors also declared the quarterly dividend on its 8 3/8% Series J Cumulative Redeemable Preferred Stock (NYSE: SPGPrJ) of $1.046875 per share, payable on December 30, 2016 to stockholders of record on December 16, 2016.

Financing Activity

For the first nine months of 2016, SPG closed or locked rate on 25 new mortgage loans totaling approximately $4.0 billion, of which the company’s share is $2.8 billion. The weighted average interest rate and term on these loans is 3.65% and 9.5 years, respectively. As of September 30, 2016, the company had over $6.5 billion of liquidity consisting of cash on hand, including its share of joint venture cash, and available capacity under its revolving credit facilities.

Guidance

For FY16, SPG expects net income to be within a range of $6.25 to $6.27 per diluted share and FFO is forecasted to be within a range of $10.85 to $10.87 per diluted share.

Stock Performance

At the closing bell, on Thursday, November 03, 2016, Simon Property Group’s stock marginally fell 0.19%, ending the trading session at $179.33. A total volume of 1.12 million shares were traded at the end of the day. The company’s shares are trading a PE ratio of 31.84 and have a dividend yield of 3.68%. The stock currently has a market cap of $59.01 billion.

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