On February 4, 2025, Simon Property Group Inc (SPG, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full year of 2024. As the second-largest real estate investment trust in the United States, Simon Property Group boasts a diverse portfolio that includes 231 properties, ranging from traditional malls to premium outlets and lifestyle centers. The company also holds a significant interest in European retail through its 22% stake in Klépierre.
Simon Property Group Inc (SPG, Financial) reported a net income attributable to common stockholders of $667.2 million, or $2.04 per diluted share, for the fourth quarter of 2024. This is a decrease from $747.5 million, or $2.29 per diluted share, in the same period of 2023. Despite this decline, the company's earnings per share exceeded the analyst estimate of $1.93. For the full year, net income was $2.368 billion, or $7.26 per diluted share, surpassing the annual estimate of $7.18 per share.
Simon Property Group's Funds From Operations (FFO) reached $4.877 billion, or $12.99 per diluted share, for 2024, up from $4.686 billion, or $12.51 per diluted share, in 2023. This increase highlights the company's robust cash flow generation, a critical metric for REITs as it indicates the ability to pay dividends and reinvest in properties. The Real Estate FFO also saw a year-over-year increase of 3.9%, reaching $4.597 billion, or $12.24 per diluted share.
The company's domestic property Net Operating Income (NOI) increased by 4.7%. The portfolio NOI rose by 4.6% compared to the previous year. Occupancy rates improved to 96.5% as of December 31, 2024, up from 95.8% a year earlier. Base minimum rent per square foot also increased by 2.5% to $58.26.
Simon Property Group maintained a strong balance sheet with approximately $10.1 billion in liquidity, including $2.0 billion in cash and $8.1 billion in available credit. The company was active in the credit markets, completing a $1.0 billion senior notes offering and amending its $3.5 billion revolving credit facility.
The Board of Directors declared a quarterly common stock dividend of $2.10 for the first quarter of 2025, a 7.7% increase from the previous year. Looking ahead, Simon Property Group estimates its 2025 net income to range between $6.95 and $7.20 per diluted share, with Real Estate FFO expected to be between $12.40 and $12.65 per share.
I am extremely pleased with our fourth quarter results, concluding another successful and productive year for our Company," said David Simon, Chairman, Chief Executive Officer, and President.
Simon Property Group Inc (SPG, Financial) demonstrated resilience and growth in 2024, achieving record FFO and maintaining strong occupancy rates amidst a challenging retail environment. These results underscore the company's strategic focus on enhancing its property portfolio and financial stability, positioning it well for future growth.
Explore the complete 8-K earnings release (here) from Simon Property Group Inc for further details.
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