Simon Property Group, Inc.’s SPG fourth-quarter 2024 funds from operations (FFO) per share of $3.68 surpassed the Zacks Consensus Estimate of $3.40. This compares to an FFO of $3.69 per share a year ago.

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Results reflect an increase in revenues, backed by a rise in the base minimum rent per square foot and occupancy levels. SPG issued its guidance for 2025 FFO per share.

Simon Property generated revenues of $1.58 billion in the quarter, which surpassed the Zacks Consensus Estimate of $1.55 billion. The reported figure increased 3.6% year over year.

According to David Simon, the chairman, CEO and president of Simon Property Group, "We executed over 21 million square feet of leases, opened a fully-leased, new Premium Outlet in the U.S., delivered 16 significant redevelopment projects, including an expansion of a leading Premium Outlet in South Korea, and strengthened our industry-leading balance sheet.”

For 2024, Simon Property reported an FFO per share of $12.99, outpacing the Zacks Consensus Estimate of $12.72. The reported figure improved 3.8% over the prior-year quarter. Total revenues of $5.96 billion surpassed the estimate of $5.93 billion. The figure increased 5.4% year over year.

SPG’s Fourth Quarter in Detail

SPG reported revenues from lease income of $1.43 billion, 5.1% higher than the prior-year period’s figure. Our estimate was pegged at $1.39 billion.

As of Dec. 31, 2024, the occupancy for the U.S. Malls and Premium Outlets portfolio came in at 96.5%, up 70 basis points from 95.8% as of Dec. 31, 2023. We projected the metric to be 95.9%.

The base minimum rent per square foot for the U.S. Malls and Premium Outlets portfolio was $58.26 as of Dec. 31, 2024, rising from $56.82 as of Dec. 31, 2023. This reflected an increase of 2.5%.

Domestic property net operating income (NOI) increased 4.4% year over year, and portfolio NOI ascended 4.5%.

Balance Sheet Position of SPG

Simon Property exited the fourth quarter of 2024 with $10.1 billion of liquidity. This comprised $2 billion of cash on hand, including its share of joint venture cash and $8.1 billion of available capacity under the company’s revolving credit facilities.

SPG’s Outlook for 2025

For 2025, Simon Property projects FFO per share in the range of $12.40-$12.65. The Zacks Consensus Estimate of $12.44 lies within the guided range.

SPG’s Dividend Update

Concurrent with its fourth-quarter earnings release, Simon Property announced a quarterly common stock dividend of $2.10 for the first quarter of 2025. The dividend will be paid out on March 31 to shareholders of record as of March 10, 2025.

SPG’s Zacks Rank

Currently, SPG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Simon Property Group, Inc. Price, Consensus and EPS Surprise

Simon Property Group, Inc. price-consensus-eps-surprise-chart | Simon Property Group, Inc. Quote

Upcoming Earnings Releases

We now look forward to the earnings releases of other retail REITs like Regency Centers REG and Kimco Realty KIM, slated to report on Feb. 6 and Feb. 7, respectively.

The Zacks Consensus Estimate for Regency Centers’ fourth-quarter 2024 FFO per share is pegged at $1.07, which implies a 4.9% year-over-year increase. REG currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Kimco Realty’s fourth-quarter 2024 FFO per share stands at 42 cents, which indicates 7.7% growth year over year. KIM currently has a Zacks Rank #3 (Hold).

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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