Simon Property's Funds From Operations Edges Higher

Simon Property Group’s (SPG) funds from operations grew 2% during the third quarter as the largest U.S. mall operator said it has seen continued improvement from retailers.

Simon said its net income fell by 9.7% to 38 cents per share, and its funds from operations climbed 2% to $1.38 per share, exceeding forecasts for FFO of $1.32 a share.

FFO is a closely-watched figure for real estate investment trusts as it excludes the non-cash accounting item depreciation.

Simon’s revenue slid 1.1% to $924.9 million, exceeding the Street’s view of $892 million.

The mall operator also lifted the lower end of its 2009 outlook by a nickel, now projecting FFO per share of $5.30 to $5.50.

“We are encouraged to see continued improvement in the capital markets and from our retailers,” CEO David Simon said in a statement.

Simon said it has $3 billion available of its revolving credit facility.

Shares of Simon were recently off 0.7% at $67.79.