Simon Property Group, Inc. (NYSE: SPG) has announced results for the quarter and twelve months ended December 31, 2005.
Diluted funds from operations ("FFO") of the Simon portfolio for the quarter increased 9.0% to $433.2 million from $397.6 million in 2004. On a per share basis the increase was 8.1% to $1.47 from $1.36 in the fourth quarter of 2004. Diluted FFO of the Simon portfolio for the twelve months increased 22.5% to $1.468 billion from $1.198 billion in 2004. On a per share basis the increase was 13.0% to $4.96 per share from $4.39 per share in 2004.
Net income available to common stockholders for the quarter increased 7.7% to $115.7 million from $107.4 million in 2004. On a diluted per share basis the increase was 6.1% to $0.52 from $0.49 in the fourth quarter of 2004. Net income available to common stockholders for the twelve months increased 33.7% to $401.9 million from $300.6 million in 2004. On a diluted per share basis the increase was 26.4% to $1.82 per share from $1.44 per share in 2004.
The Company considers FFO a key measure of its operating performance that is not specifically defined by accounting principles generally accepted in the United States ("GAAP"). The Company believes that FFO is helpful to investors because it is a widely recognized measure of the performance of real estate investment trusts ("REITs") and provides a relevant basis for comparison among REITs. A reconciliation of GAAP reported net income to FFO is provided in the financial statement section of this press release.
"We are pleased to report another quarter of strong financial and operational results, as well as the completion of several activities that position us well for 2006," said David Simon, Chief Executive Officer. "During the fourth quarter of 2005 we opened one new development project, entered into a land development joint venture, acquired interests in two regional malls, sold twelve non-core retail real estate assets, issued $1.1 billion of unsecured notes at attractive coupons, and expanded and extended our corporate credit facility on more favorable terms. In addition, our development program continues to proceed with six projects under construction. We are also pleased to announce today an 8.6% increase in our common stock dividend."
Source: Simon Property Group