Simon Property Group Inc (NYSE:SPG) stock rose 4.64% (As on February 6, 11:44:38 AM UTC-4, Source: Google Finance) after the company topped market expectations for fourth-quarter funds from operations (FFO), as the commercial real estate investment trust (REIT) benefited from strong leasing demand at its malls and shopping centers. The company’s occupancy level at its malls and premium outlets was 95.8% at Dec. 31, up 90 basis points from a year ago. Base minimum rent per square foot was $56.82 at Dec. 31, a rise of 3.1% over the year earlier. Net income attributable to common stockholders was $747.5 million, or $2.29 per diluted share, as compared to $673.8 million, or $2.06 per diluted share in 2022. Net income for the fourth quarter of 2023 includes after-tax net gains of $117.4 million, or $0.31 per diluted share, primarily due to the partial sale of the Company’s ownership interest in Authentic Brands Group (“ABG”); prior year period included non-cash after-tax gains from investment activity of $90.5 million, or $0.25 per diluted share. Funds From Operations (“FFO”) was $1.382 billion as compared to $1.274 billion, in the prior year, inclusive of the gains. Domestic property Net Operating Income (“NOI”) increased 7.3% and portfolio NOI increased 7.2% compared to the prior year period.

SPG in the fourth quarter of FY 23 has reported the adjusted FFO per share of $3.69, beating the analysts’ estimates for the adjusted earnings per share of $3.34, according to LSEG estimates. The company had reported the adjusted revenue of $1.53 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $1.46 billion. As of December 31, 2023, Simon had approximately $10.9 billion of liquidity consisting of $2.8 billion of cash on hand, including its share of joint venture cash, and $8.1 billion of available capacity under its revolving credit facilities.

Additionally, the company has declared a quarterly common stock dividend of $1.95 for the first quarter of 2024.  This is an increase of $0.15, or 8.3% year-over-year.  The dividend will be payable on March 29, 2024 to shareholders of record on March 8, 2024.

The company expects FFO per share to be in the range of $11.85 to $12.10 for the year ending Dec. 31, 2024, versus analysts’ expectations of $12.20. It reported FFO at $12.51 per share for 2023.