Simon Property Group Inc (NYSE: SPG) stock rises on decent earnings

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Simon Property Group Inc (NYSE: SPG) stock rose over 4.1% on 12th may, 2020 (As of 10:16 am GMT-4; Source: Google finance) after the company posted better than expected results for the first quarter of FY 20. SPG in the first quarter of FY 20 has reported the adjusted funds from operations per share of $2.78, while reported the adjusted revenue of $1.35 billion in the first quarter of FY 20, beating the analysts’ estimates for revenue of $1.39 billion.

As of May 11, the Company had reopened 77 of its U.S. retail properties in markets where local and state orders have been lifted and retail restrictions have been eased. Further, twelve of Simon’s Designer and international Premium Outlets properties were reopened. The Company has suspended or eliminated more than $1 billion of capital for new and redevelopment projects.  Simon’s share of remaining required cash funding for these projects that were scheduled to be completed in 2020 or 2021 are about $160 million. Meanwhile, the company has withdrawn its full-year 2020 guidance for projected net income attributable to common stockholders per diluted share, projected FFO per diluted share and comparable property NOI growth, which were provided on February 4, 2020. At the end of March, 2020, SPG had about $8.7 billion of liquidity consisting of $4.1 billion of cash on hand, including its share of joint venture cash, and $4.6 billion of available capacity under its revolving credit facilities and term loan, net of outstanding U.S. and Euro commercial paper.

Moreover, the Company has amended and extended its $4 billion senior unsecured multi-currency revolving credit facility with a $6 billion senior unsecured credit facility comprised of a $4 billion multi-currency revolving credit facility and a $2.0 billion delayed draw term loan facility.  Due to additional commitments, the revolving credit facilities can be increased by $1 billion, for the total up to $7.0 billion.  The revolving facility initially matures on June 30, 2024, and the term facility initially matures on June 30, 2022.

Furthermore, the company has reported FFO, funds from operation, of $980.6 million. Comp NOI was flat in the first quarter and portfolio NOI fell by 20 basis points year-over-year. Occupancy is at for the premium and mall portfolio at quarter end was 94%.

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