Simon Property sees encouraging numbers

INDIANAPOLIS (AP) - Simon Property Group Inc., the nation's largest mall operator, said Friday that a key metric climbed 14 percent in the first quarter, boosted by higher rents and occupancy rates.

The Indianapolis company said funds from operations, or FFO, rose to $648.7 million, or $1.82 per share, up from $570.6 million, or $1.61 per share, in the same quarter last year.

Analysts surveyed by FactSet expected, on average, FFO of $1.67 per share.

Funds from operations adds items like amortization and depreciation to net income and is considered a key measure of strength for a real estate investment trust like Simon.

The company's net income climbed to $645.4 million, or $2.18 per share, from $179.4 million, or 61 cents per share, in the same quarter last year.

Revenue rose 9.7 percent to $1.12 billion from $1.02 billion. Analysts expected revenue of $1.04 billion.

Simon said average rent per square foot rose 4.4 percent to $39.87 and occupancy increased to 93.6 percent from 93 percent. Total sales per square foot rose 11 percent to $546 from $491.

Simon also boosted its 2012 FFO guidance to a range of $7.50 to $7.60 per share, ahead of average Wall Street predictions of $7.45 per share.

In addition, the company boosted its quarterly dividend by 5.3 percent to $1. The dividend will be paid on May 31 to shareholders of record as of May 17.

Its shares finished at $152.19 on Thursday, near the high end of their 52-week range of $99.60 to $152.92.