Simon Posts Strong Q4

Revenue for the period was also up by 8.3% to $889.8 million while net operating income rose 7.5%, the company said.The Indianapolis-based real estate investment trust, the country's largest mall owner, said the numbers were boosted by improved leasing and strong retail sales, especially at its outlet centers.

Sales at the REITs outlet malls increased 7.8 % to $444 per sf, during the period while comparable store sales throughout its portfolio were up 5.4% to $450 per sf. Occupancy rates and rents at both Simon's outlet and retail centers were also up. At outlet malls, occupancy rose 30 basis points to 99.6% while rents rose an average of 6% to $23.26 per sf. Overall, occupancy increased 40 basis points to 93.1% with the average rent increasing 3%, or $34.49 per sf, the company said.

Simon also affirmed its forecast, made last month, which listed funds from operations for 2006 in the $5.20 to $5.32 per share range. Analysts predicted those results would average $5.30 per share.During the quarter, the company also divested of 13 "non-core" properties during the quarter in a $105.1 million sell off that brought in a net gain of $8.2 million for the company.

The firm acquired two properties during the period, paying $103.5 million for the Springfield Mall in Springfield, PA and acquiring a 50% interest in Coddingtown Mall in Santa Rosa, CA. The company also opened a 785,000-sf open air shopping center known as Firewheel Town outside of Dallas at a cost of $132 million.

Simon currently owns 286 properties in the United States, 51 shopping centers in Europe, five outlet centers in Japan and one in Mexico.