Simon Property Group’s 2Q profits miss Wall Street expectations

INDIANAPOLIS (AP) — Simon Property Group Inc. (SPG) on Monday reported a key measure of profitability in its second quarter. The results missed Wall Street expectations.

The Indianapolis-based real estate investment trust said it had funds from operations of $1.09 billion, or $2.90 per share, in the period.

The average estimate of eight analysts surveyed by Zacks Investment Research was for funds from operations of $2.93 per share.

Funds from operations is a closely watched measure in the REIT industry. It takes net income and adds back items such as depreciation and amortization.

The company said it had net income of $493.5 million, or $1.51 per share.

The shopping mall real estate investment trust, based in Indianapolis, posted revenue of $1.46 billion in the period, which topped Street forecasts. Four analysts surveyed by Zacks expected $1.43 billion.

Simon Property expects full-year funds from operations to be $12.80 to $12.90 per share.