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Simon Property Group Inc (SPG) Reports Q3 2023 Earnings, Raises Full Year Guidance

  • Net income attributable to common stockholders for Q3 2023 was $594.1 million, up from $539.0 million in Q3 2022.

  • Funds From Operations (FFO) for Q3 2023 was $1.201 billion, compared to $1.099 billion in the prior year.

  • Domestic property Net Operating Income (NOI) increased by 4.2% and portfolio NOI increased by 4.3% compared to the prior year period.

  • Simon Property Group Inc (NYSE:SPG) raises full year 2023 guidance.

Simon Property Group Inc (NYSE:SPG), a leading real estate investment trust, released its earnings report for the third quarter ended September 30, 2023, on October 30, 2023. The company reported strong financial and operational performance, with significant growth in net income and Funds From Operations (FFO).

Financial Highlights

Net income attributable to common stockholders for the third quarter was $594.1 million, or $1.82 per diluted share, compared to $539.0 million, or $1.65 per diluted share in 2022. This includes non-cash after-tax gains of $118.1 million, primarily due to the partial sale of the company's ownership interest in its SPARC Group joint venture.

FFO for the quarter was $1.201 billion, or $3.20 per diluted share, compared to $1.099 billion, or $2.93 per diluted share in the prior year. Domestic property NOI increased 4.2% and portfolio NOI increased 4.3%, compared to the prior year period.

Operational Highlights

Occupancy at U.S. Malls and Premium Outlets was 95.2% at the end of September 2023, up from 94.5% at the same time in 2022. Base minimum rent per square foot was $56.41, an increase of 2.9% from $54.80 in the prior year period. However, reported retailer sales per square foot decreased by 0.7% compared to the prior year period.

Capital Markets and Balance Sheet Liquidity

During the first nine months of 2023, the company completed eleven non-recourse mortgage loans totaling approximately $962 million, of which Simons share was $540 million. As of September 30, 2023, Simon had approximately $8.8 billion of liquidity, consisting of $1.4 billion of cash on hand and $7.4 billion of available capacity under its revolving credit facilities.

Dividends and Guidance

Simons Board of Directors declared a quarterly common stock dividend of $1.90 for the fourth quarter of 2023, an increase of $0.10, or 5.6% year-over-year. The company also raised its full year 2023 guidance, estimating net income to be within a range of $6.67 to $6.77 per diluted share and FFO to be within a range of $12.15 to $12.25 per diluted share.

Conclusion

The Q3 2023 earnings report shows Simon Property Group Inc (NYSE:SPG) continuing to demonstrate strong financial and operational performance. With significant growth in net income and FFO, and an increase in dividends, the company is well-positioned for continued success in the future.

Explore the complete 8-K earnings release (here) from Simon Property Group Inc for further details.

This article first appeared on GuruFocus.

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