INDIANAPOLIS - Simon Property Group, Inc. (NYSE: NYSE:SPG), a global leader in premier shopping, dining, entertainment, and mixed-use destinations, reported a robust start to the year with first-quarter earnings surpassing analyst expectations and an upward revision to its full-year 2024 guidance.
The company's shares edged up 1.8% following the announcement, indicating a modestly positive investor response to the strong results and optimistic outlook.
For the first quarter ended March 31, 2024, Simon Property Group announced earnings per share (EPS) of $1.44, which was $0.08 higher than the analyst consensus of $1.36. The company's revenue also outperformed, coming in at $1.44 billion against market expectations of $1.31 billion.
This performance marks a significant improvement from the same quarter last year, reflecting the company's continued growth trajectory.
Chairman, CEO, and President David Simon commented on the positive results, attributing them to sustained leasing momentum and cash flow growth. He also highlighted the successful divestiture of the company's remaining stake in Authentic Brands Group, which generated substantial proceeds and contributed to the quarter's success.
Looking ahead, Simon Property Group revised its full-year 2024 EPS guidance to a range of $7.38 to $7.53, notably higher than the analyst consensus of $6.13. The midpoint of the guidance range, $7.455, is well above the consensus estimate, signaling confidence in the company's ability to continue delivering strong financial performance.
The estimated funds from operations (FFO) per diluted share for the full year are projected to be between $12.75 and $12.90.
In addition to the positive earnings news, the Board of Directors declared a quarterly common stock dividend of $2.00 for the second quarter of 2024, an 8.1% increase year-over-year (YoY). This dividend is set to be paid on June 28, 2024, to shareholders of record as of June 7, 2024.
The company's solid financial position is further underscored by a 3.7% increase in domestic property Net Operating Income (NOI) and a 3.9% portfolio NOI increase compared to the prior year period. Occupancy rates also saw an uptick, reaching 95.5% as of March 31, 2024, a 1.1% improvement YoY.
Simon Property Group's strategic actions and financial stewardship have positioned it well for continued success in the evolving retail landscape. With a strong balance sheet and a clear focus on growth, the company is poised to capitalize on opportunities and deliver value to its shareholders in the coming year.
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