3 key takeaways from Simon Property Group’s Q2 earnings report

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Aug 2, 2021
  • Simon Property Group beats Wall Street estimates in the second quarter.
  • The board declared $1.50 per share of a quarterly cash dividend for Q3.
  • Shares of the company were more than 3.0% up in after-hours trading.

Simon Property Group Inc (NYSE: SPG) reported its financial results for the second quarter on Monday that beat Wall Street estimates. The company attributed its hawkish performance to the easing COVID-19 restrictions. Shares of the company were more than 3.0% up in after-hours trading.

1. Financial performance

Simon Property said it earned $617.26 million in the second quarter that translates to $1.88 per share. In the same quarter last year, it had posted $254.21 million of earnings or 83 cents a share. On an adjusted basis, the real estate investment trust earned $3.24 per share.

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Simon Property generated $1.25 billion of revenue in Q2 that represents an annualised growth of 17.9%. In comparison, analysts had called for $1.18 billion of revenue and $2.37 of adjusted EPS.

2. Dividend and future guidance

The board declared $1.50 per share of a quarterly cash dividend for the third quarter on Monday – a 15.4% increase on a year over year basis. Simon Property forecasts its per-share net income to fall between $5.47 and $5.57 this year.

As of 30th June, occupancy was noted at 91%. The largest owner of shopping malls in the United States values its liquidity at $8.8 billion as of the end of the recent quarter. In separate news from the U.S., Take-Two Interactive also reported better-than-expected financial results for the first quarter on Monday.

3. CEO David Simon’s remarks

Commenting on the earnings report on Monday, CEO David Simon said:

“I am pleased with profitability and substantial improvement in cash flow that were generated in the second quarter. We are encouraged by the increase in our shopper traffic, retailer sales and leasing activity.”

Simon Property is scheduled for a conference call to discuss its quarterly results at 05:00 p.m. EDT. You can listen to the conference call live at this link.

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