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Simon Property (SPG) Q2 FFO and Revenues Beat Estimates

Have you been eager to see how Simon Property Group Inc. SPG performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this Indianapolis, IN-based, retail real estate investment trust’s (REIT) earnings release this morning.

A FFO Beat

Simon Property came out with funds from operations (“FFO”) per share of $2.47, beating the Zacks Consensus Estimate of $2.44.

Results reflect improved property performance and growth in revenues.

How Was the Earnings Surprise Trend?

Simon Property has a mixed surprise history. Before posting a beat in Q2, the company delivered positive surprise in three out of prior four quarters and missed in the other occasion, as shown in the chart below. Overall, the company surpassed the Zacks Consensus Estimate by an average of 4.09% in the trailing four quarters.

Note: The EPS numbers presented in the above chart represent funds from operations (“FFO”) per share.

Revenue Came In Higher Than Expected

Simon Property posted revenues of $1.36 billion, which beat the Zacks Consensus Estimate of $1.33 billion. It compared favorably with the year-ago number of $1.32 billion.

Key Developments to Note

Simon Property raised its full-year 2017 FFO per share guidance and expects it to be in the range of $11.14–$11.22. This marks a 4 cent per share increase from the midpoint of the prior guidance range, after taking into consideration the 36 cents per share charge on the extinguishment of debt.

The company announced a quarterly dividend of $1.80 per share, denoting an increase of 2.9% sequentially and 9.1% year-over-year. The new dividend will be paid on Aug 31 to stockholders of record on Aug 17.

What Zacks Rank Says

Simon Property has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this SPG earnings report!

Note:  FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

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