Simon Property Group Inc (NYSE:SPG) stock fell 2.78% (As on February 7, 11:11:20 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. Net income attributable to common stockholders was $673.8 million as compared to $503.2 million in 2021. Net income for the fourth quarter of 2022 includes non-cash after-tax gains from investment activity of $90.5 million, or $0.25 per diluted share. Net income in the prior year period included both a non-cash after tax gain of $10.9 million primarily related to investment activity and a loss on extinguishment of debt of $20.3 million. Comparable Funds From Operations (“Comparable FFO”) was $1.183 billion, or $3.15 per diluted share as compared to $1.170 billion, or $3.11 per diluted share in the prior year period. Domestic property Net Operating Income (“NOI”) increased 5.8% and portfolio NOI increased 6.3%, in each case, compared to the prior year period. The Company has completed 20 non-recourse mortgage loans totaling approximately $2.3 billion (U.S. dollar equivalent), of which Simon’s share was $1.4 billion. The weighted average interest rate on these loans was 5.33%. As of December 31, 2022, Simon had approximately $7.8 billion of liquidity consisting of $1.3 billion of cash on hand, including its share of joint venture cash, and $6.5 billion of available capacity under its revolving credit facilities.
SPG in the fourth quarter of FY 22 has reported the adjusted funds from operations per share of $3.15, beating the analysts’ estimates for the adjusted funds from operations per share of $3.14, according to Zacks Investment Research. The company had reported the adjusted revenue of $1.4 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $1.37 billion.
Additionally, the company has declared a quarterly common stock dividend of $1.80 for the first quarter of 2023. This is an increase of $0.15, or 9.1% year-over-year. The dividend will be payable on March 31, 2023 to shareholders of record on March 10, 2023.
Simon Property expects full-year funds from operations in the range of $11.70 to $11.95 per share. The Company currently estimates net income to be within a range of $6.35 to $6.60 per diluted share for fiscal 2023.