REIT's Financial Performance
Tops Analyst Expectations

Simon Property Group Inc. (SPG) reported Monday that fourth-quarter funds from operations topped analyst expectations. The company also raised the dividend on its common stock.

The Indianapolis real estate investment trust said quarterly funds from operations, a common measure of financial performance for REITs, rose to $1.47 a share from $1.36 in the year-earlier period. Revenue was $889.8 million, up from $821.4 million.

Analysts had been looking for, on average, FFO of $1.44 a share on revenue of $891 million, according to Thomson First Call.

The regional-mall REIT lifted its dividend 8.6% to 76 cents a share, payable Feb. 28 to stockholders of record Feb. 17.

Net income reached 52 cents a share from 49 cents. The Wall Street analyst forecast was 59 cents a share.

Simon Property sees FFO in 2006 ranging $5.20 to $5.32 a share and net income of $1.71 to $1.83 a share.

The company in the fourth quarter continued construction on six projects it expects to open in 2006 or 2007 and closed a private offering of $1.1 billion of senior notes.

Simon Property shares lost $1.44 to close at $81.51 Friday.

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