encouraging news.... us malls

February 05, 2010
Simon Property 4Q Beats Street; 2010 View Rosy

By Kathryn Glass

FOXBusiness Shares of Simon Property Group Inc. (SPG: 73.3, 2.32, 3.27%) rose more than 5% in Friday?s session, after the company reported earnings that topped expectations and gave a better-than-expected full-year view.

The shopping mall owner expects adjusted 2010 funds from operations in a range of $5.72 to $5.87 a share, and forecast earnings between $2.58 and $2.73 a share.

The outlook was well ahead of expectations; analysts had forecast funds from operations of $5.59 a share, according to a poll by Thomson Reuters.

For the fourth quarter, the company saw profit of $115.9 million, or 32 cents a share, compared to earnings of $196.4 million, or 64 cents a share, one year ago.

Adjusted funds from operations came in at $1.66 a share, on revenue of $1.03 billion. Analysts had expected funds from operations of $1.52 a share on revenue of $963 million.

"I am very pleased with our fourth quarter and full year financial and operational performance," said David Simon, chairman and chief executive, in a statement. "We reported funds from operations as adjusted per share of $1.66 for the quarter and $6.01 for the year. In addition, our regional mall and Premium Outlet Center portfolios generated positive comparable property net operating income growth in 2009. These are significant accomplishments given the state of the U.S. economy and the challenges faced by consumers in 2009."

Shares of Simon Property Group rose $3.91, or 5.6%, in Friday?s session to close at $73.36 a share.