Simon Property Q4 earnings top consensus; 2023 guidance softer than expected

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Simon Property Group (NYSE:SPG) Q4 funds from operations and revenue, reported Monday, both exceeded Wall Street expectations as occupancy continued to improve and rents trended higher. But its guidance for 2023 FFO fell short of the consensus estimate.

The mall owner introduced 2023 guidance for comparable FFO per share of $11.70-$11.95, below the $12.13 consensus.

Simon Property Group (SPG) stock rose 0.4% in after-hours trading.

Q4 comparable FFO per share of $3.15, topping the $3.13 consensus, rose from $2.97 in Q3 and from $3.11 in Q4 2021.

Occupancy at U.S. malls and premium outlets was 94.9% at Dec. 31, 2022 vs. 94.5% at Sept. 30.

Base minimum rent per square foot of $55.13 at Dec. 31 vs. $54.80 at Sept. 30 and $53.91 at Dec. 31, 2021.

Q4 revenue of $1.40B, beating the $1.29B consensus, rose from $1.32B in the prior quarter and from $1.33B in the year-ago quarter.

Domestic property net operating income rose 5.8% Y/Y and portfolio NOI increased 6.3% from a year ago.

Q4 total operating expenses of $715.7M vs. $663.6M in Q3 and $734.6M in Q4 2021. Property operating expenses of $127.2M vs. Visible Alpha consensus of $119.9M, rose from $120.9M in Q3 and from $124.5M in Q4 2021.

Conference call at 5:00 PM ET.

Earlier, Simon Property (SPG) FFO of $3.15 beats by $0.02, revenue of $836.01M.