Mall-based real estate investment trust (REIT) Simon Property Group, Inc. ( SPG ) on Tuesday posted better-than-expected second quarter earnings results and lifted its quarterly dividend payout by 5%.
The Indianapolis-based company reported second quarter net income of $216.3 million, or 71 cents per share, compared with $206 million, or 70 cents per share, in the year-ago period.
Revenue rose 14% from last year to $1.19 billion.
Funds from operations, or FFO, rose to $1.89 per share from $1.65 last year.
On average, Wall Street analysts expected lower FFO of $1.81 per share, on smaller revenue of $1.16 billion.
Looking ahead, SPG lifted its FFO outlook to $7.60 to $7.70 per share, up from $7.50 to $7.60 previously.
On another positive note, the company boosted its quarterly dividend payout by 5%. The new dividend of $1.05 per share (up from $1) will be paid on Aug. 31 with an ex-dividend date of Aug. 15.
Simon Property Group shares were mostly flat in premarket trading Tuesday.
The Bottom Line
Shares of Simon Property Group ( SPG ) will now have a 2.57% dividend yield, based on the higher dividend payout and last night's closing stock price of $155.94. The stock has technical support in the $143-$150 price area. The stock is trading near the all-time high levels of $160 a share.
Simon Property Group, Inc. ( SPG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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