Shopping center operator Simon Property Group reported lower profit as its funds from operations (FFO) inched down during the second quarter.
The company’s attributable net income fell from $556.1 million to $483.1 million in the quarter ended June 30.
FFO edged down from $1.189 billion a year ago to $1.185 billion, but real estate FFO rose 7.9 per cent to $1.249 billion.
Management attributed the growth in real estate FFO to consistent leasing demand, traffic increases, strong retailer sales growth, and the contribution from acquisitions completed over the past year.
Occupancy as of June 30 remained unchanged at 96 per cent. Base minimum rent per square foot was up 6.3 per cent to $62.42, and retailer sales per square foot soared 13.9 per cent.
Domestic property net operating income increased 8.5 per cent, and portfolio net operating income rose 8.3 per cent.
For the first half, attributable net income was down 0.7 per cent to $962.7 million. FFO grew 4.5 per cent, and real estate FFO increased 7.5 per cent.
Simon is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations across North America, Europe and Asia.
In the US, the group’s key shopping centers include King of Prussia (PA), The Galleria (TX), Sawgrass Mills (FL), Woodbury Common Premium Outlets (NY), and Lenox Square (GA).
