Simon Property Group Posts Mixed Q3 Results, Hikes Dividend

Simon Property Group (NYSE:SPG) reported mixed results for the third quarter, with earnings slightly below expectations but revenue coming in well above estimates. The real estate investment trust posted adjusted earnings per share of $1.46, missing Wall Street analyst forecasts by $0.01. However, revenue reached $1.48 billion, significantly outpacing the anticipated $1.32 billion, highlighting a strong performance in core operations.

Net income attributable to common stockholders fell to $475.2 million from $594.1 million a year prior, partially due to a $49.3 million non-cash net loss related to Klépierre exchangeable bonds. Operationally, Simon Property Group delivered solid results, with domestic property Net Operating Income (NOI) up 5.4% year-over-year and portfolio NOI rising 5.0%. Occupancy at U.S. malls and premium outlets improved to 96.2%, a 1% increase over last year.

For the full-year 2024, Simon Property Group projected earnings guidance of $7.18 to $7.28 per share, above the Street consensus of $6.64. Additionally, the company raised its quarterly dividend to $2.10 per share, marking a 10.5% year-over-year increase and the fourth consecutive quarterly dividend hike.