Simon reports strong Q1 results, lower net income
Simon announced on Tuesday its financial results for the first quarter of fiscal 2016 ended March 31, 2016.
Funds from Operations increased 15.4% to $951.8 million from $830.7 million, which according to Simon Chairman and Chief Executive Officer David Simon was “driven by growth in operating income from our comparable properties and the accretive impact of our new developments and expansions.” The company’s Board of Directors also declared a quarterly common stock dividend of $1.60 per share, a 6.7% increase year-over-year.
Despite the increase in funds, net income decreased to $481.0 million from $539.1 million.
In the first quarter, Simon completed the acquisition of The Shops at Crystals in Las Vegas for $1.1 billion and started construction on the 428,000-square-foot Premium Outlet Collection – Edmonton International Airport in Edmonton, Alberta, Canada. The company owns a 50% interest in the Canadian project that is slated to open in October 2017.
The first quarter also saw the completion of Roosevelt Field in Garden City, NY, which included the addition of Long Island’s first Neiman Marcus store, and continued construction to Brickell City Centre (Miami, FL), Clarksburg Premium Outlets (Clarksburg, Maryland), The Shops at Clearfork (Fort Worth, Texas), Siheung Premium Outlets (Siheung (Seoul), South Korea) Provence Designer Outlet (Miramas, France) and a 355,000 square foot outlet center located in Columbus, Ohio.
The company started its expansion on The Outlets at Orange in Orange (Los Angeles) and continues construction on The Fashion Centre at Pentagon City, King of Prussia, The Galleria in Houston, and Woodbury Common Premium Outlets.
For fiscal 2016, Simon estimates that FFO will be within a range of $10.72 to $10.82 per diluted share and net income will range from $6.01 to $6.11.
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