Have you been eager to see how Simon Property Group Inc. (SPG) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Indianapolis, IN-based, retail real estate investment trust’s (“REITâ€) earnings release this morning:
A FFO Beat
Simon Property came out with comparable funds from operations (“FFOâ€) per share of $2.28, beating the Zacks Consensus Estimate of $2.23.
Higher operating income and occupancy aided the results.
How Was the Earnings Surprise Trend?
Simon Property has a decent earnings surprise history. Before posting an earnings beat/miss in Q1, the company delivered negative surprises in one out of the past four trailing quarters. In the preceding quarter, the company posted in-line results. Overall, the company surpassed the Zacks Consensus Estimate by an average of 0.31% in the trailing four quarters, prior to this earning.
Revenue Came In Line
Simon Property posted revenues of $1.22 billion, which in line with the Zacks Consensus Estimate. However, it compared favorably with the year-ago number of $1.16 billion.
Key Developments to Note:
Simon Property declared a quarterly dividend of $1.50 per share, an increase of 15.4% year over year and 7.1% sequentially. Also, it raised the earlier announced full year 2015 FFO guidance.
What Zacks Rank Says
Simon Property currently has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
Note:Â FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
