Simon Property Group Exceeds Q4 Expectations, Plans Premium Outlets in Jakarta
Simon Property Group (SPG) outperformed market forecasts for its fourth-quarter funds from operations, driven by robust leasing demand at its U.S. malls and premium outlets.
The company witnessed revenue growth across its portfolio while controlling costs. It announced plans to open premium outlets in Jakarta, Indonesia, in March.
Simon Property anticipates net income between $6.95 and $7.20 per share for 2025, surpassing analysts' average projection of $6.58. As of December 31, occupancy rates reached 96.5%, up from 95.8% in 2023.
The company reported a 2.5% increment in base minimum rent per square foot, bringing it to $58.26. Funds from operations (FFO), a crucial REIT performance indicator, stood at $3.68 per share, exceeding analysts' estimates of $3.41. Quarterly lease income revenue amounted to $1.43 billion, against analysts' projections of $1.40 billion.
SPG's share price remained relatively stable in after-hours trading. In 2024, the stock experienced a 21% increase.