Simon Property (SPG) Q1 FFO Tops, '22 View Up, Dividend Hiked

·4-min read

Simon Property Group, Inc.’s SPG first-quarter 2022 funds from operations (FFO) per share of $2.78 handily exceeded the Zacks Consensus Estimate of $2.73.

This performance was backed by a better-than-expected top line. The retail REIT behemoth also raised the 2022 FFO per share outlook based on its results in the first quarter and expectations for the rest of the year. It also announced a hike in the quarterly dividend.

According to David Simon, chairman, chief executive officer and president, "Leasing momentum, retailer sales and cash flow all accelerated."

The company generated revenues of $1.29 billion in the quarter, surpassing the Zacks Consensus Estimate of $1.27 billion.

The quarterly FFO per share also compares favorably with the year-ago figure of $2.48. Revenues increased 4.5% year over year.

Inside the Headlines

For the U.S. Malls and Premium Outlets portfolio, occupancy was 93.3% as of Mar 31, 2022, expanding 250 basis points year over year. The base minimum rent per square foot was $54.14 as of Mar 31, 2022.

Domestic property NOI increased 7.5% year over year. Portfolio NOI climbed 8.8% from the prior-year period’s figure.

Balance Sheet Position

Simon Property exited the first quarter of 2022 with $8.2 billion of liquidity. This comprised $1.1 billion of cash in hand, including its share of joint-venture cash, $7.1 billion of available capacity under the company’s revolving credit facilities, net of $240 million outstanding under the U.S. commercial paper program.


Simon Property raised the 2022 FFO per share guidance and now projects the same in the range of $11.60-$11.75, up from the $11.50-$11.70 range guided earlier. This suggests an increase of 8 cents per share at the midpoint. The Zacks Consensus Estimate for the same is currently pegged at $11.73.

Dividend Hike

Simon Property announced a 3% sequential hike in its second-quarter 2022 dividend. The company will now pay $1.70 per share compared with the $1.65 paid earlier. The increased dividend will be paid on Jun 30 to shareholders of record as of Jun 9, 2022.

Share Repurchase

Simon Property's board of directors authorized a new common stock repurchase program under which the company may repurchase in the open market, block trades or privately negotiated transactions up to $2 billion of its common stock over the next 24 months as market conditions warrant. This program will become effective on May 16, 2022.

Currently, SPG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Simon Property Group, Inc. Price, Consensus and EPS Surprise

Simon Property Group, Inc. Price, Consensus and EPS Surprise
Simon Property Group, Inc. Price, Consensus and EPS Surprise

Simon Property Group, Inc. price-consensus-eps-surprise-chart | Simon Property Group, Inc. Quote

Performance of Retail REITs

Federal Realty Investment Trust’s FRT first-quarter 2022 FFO per share of $1.50 surpassed the Zacks Consensus Estimate of $1.44. This also compared favorably with the year-ago quarter’s tally of $1.17. Federal Realty’s results reflected better-than-anticipated revenues. This retail REIT also raised its guidance for 2022 FFO per share.

FRT’s quarterly revenues of $256.8 million topped the consensus mark of $251.8 million and improved by 17.7% from the year-ago quarter’s tally.

Realty Income Corporation’s O first-quarter 2022 adjusted FFO per share of 98 cents marginally surpassed the Zacks Consensus Estimate of 97 cents. The reported figure increased 14% from the prior-year quarter’s 86 cents. Results reflected a better-than-expected improvement in revenues. Realty Income benefited from expansionary effects and a healthy pipeline of opportunities globally.

Realty Income’s total revenues in the reported quarter came in at $807.3 million, exceeding the Zacks Consensus Estimate of $761.2 million. O’s top line also jumped 82.5% year over year.

Kimco Realty Corp.’s KIM first-quarter 2022 NAREIT FFO per share came in at 39 cents, surpassing the Zacks Consensus Estimate of 37 cents. This figure also grew 18.2% from the year-ago quarter. Results reflected better-than-anticipated revenues. Kimco also issued a revised 2022 FFO outlook.

KIM generated revenues of $427.2 million, beating the consensus mark of $422.2 million. Quarterly revenues jumped 51.3% year over year.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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