Simon Property Group, owner and manager of Lindale Mall in northeast Cedar Rapids, on Monday reported a sharp increase in a key earnings measure for the fourth quarter of 2013 as rents and sales rose at its malls and outlet centers.
Indianapolis-based Simon, the largest mall and outlet center owner in the United States, said fourth-quarter funds from operations increased 21.9 percent to $827.4 million, or $2.29 per share, from $678.9 million, or $1.91 per share, in the final quarter of 2012.
Wall Street analysts on average had expected funds from operations of $2.17 a share.
Funds from operations, a performance measure for real estate investment trusts, usually excludes gains or losses from property sales and removes the impact of depreciation has on earnings.
Simon's fourth-quarter revenue rose to $1.34 billion from $1.17 billion in the fourth quarter of 2013. Analysts on average were expecting $1.3 billion.
Occupancy at Simon's malls and outlet centers rose to 95.3 percent from 94.6 percent a year earlier, and the company was able to increase average base rent 3.4 percent to $40.73 per square foot. Sales at tenants' stores in Simon's malls and outlet centers rose 6.6 percent on a trailing 12-month basis to $568 per square foot.
Simon forecast full-year funds from operations, excluding one-time items, at $8.40 to $8.50 per share. Analysts are expecting $8.41 per share for the year.Simon has international outlet centers in Canada, Malaysia, Japan, Korea and Europe. It is redeveloping or expanding 25 properties in the U.S. and two in Japan.