(Reuters) - Simon Property Group (NYSE:SPG) topped market expectations for fourth-quarter funds from operations (FFO) on Monday, as the commercial real estate investment trust (REIT) benefited from strong leasing demand at its malls and shopping centers.
Simon Property Group is a REIT engaged in the ownership of shopping, dining and entertainment destinations. Its biggest tenants include LVMH, top luxury brand and owner of Louis Vuitton, Christian Dior, Hennessy and Tiffany & Co (NYSE:TIF), among others.
Simon Property's fourth-quarter FFO, a key measure of performance of a REIT, rose 8.5% from a year ago to $3.69 per share, beating LSEG estimates of $3.34 per share.
The company's occupancy level at its malls and premium outlets was 95.8% at Dec. 31, up 90 basis points from a year ago. Base minimum rent per square foot was $56.82 at Dec. 31, a rise of 3.1% over the year earlier.
Its shares, which gained 21.5% in 2023, were up about 1% in extended trading.
The company expects FFO per share to be in the range of $11.85 to $12.10 for the year ending Dec. 31, 2024, versus analysts' expectations of $12.20. It reported FFO at $12.51 per share for 2023.