Indianapolis-based Simon Property Group Inc. (NYSE: SPG) Chief Executive Officer David Simon says, despite a "choppy" environment, the Real Estate Investment Trust had better quarterly results than expected. Simon is reporting first quarter Funds From Operations of $985 million, compared to $951.8 million during the same period a year earlier.
The company says profit for the quarter was $477.7 million, slightly down from $481 million in Q1 of 2016. In a statement, David Simon says "we are off to a good start in 2017 with the reporting of financial and operational results that exceeded our expectations, led by 3.8 percent growth in comparable property net operating income. We continue to strengthen our retail real estate portfolio through our investment activities, including the opening of two new international outlet centers. Today, even in the current choppy retail environment, we are pleased to reaffirm our outlook for the year which is a testament to the strength of our company."
It is sticking by previous year-long financial guidance that estimates net income to be within $6.50 to $6.60 per diluted share and FFO within $11.45 to $11.55 per diluted share.
Simon recently opened outlets South Korea and France and is involved in four other developments in Texas, Malaysia, Virginia and Canada that are expected to open within a year. You can connect to more about the first quarter earnings by clicking here.
On Thursday, the same day the company reported quarterly earnings, late co-founder Mel Simon was honored by the city just a few blocks from Simon headquarters. Mayor Joe Hogsett and officials from the Indiana Pacers, a team he bought with his brother and current Simon chairman Herb Simon in 1983, dedicated a portion of the road outside Bankers Life Fieldhouse to Mel.