What: The US’ largest manager and developer of shopping centers recorded positive first-quarter results.

Why it is important: The results have led to the group raising its quarterly dividend and increasing the midpoint of our its full-year 2023 guidance.

Net income attributable to common stockholders was USD 451.8 million compared to USD 426.6 million in 2022 and funds from operations were USD 1.03 billion compared to USD 1.02 billion last year.

The group is seeing strong demand from the retail sector across many categories in terms of leasing despite economic uncertainty.

Simon’s Other Platform Investments (OPI) group, JCPenney, and SPARC joint venture all remain profitable, with an expectation to remain profitable in the next two quarters, but seeing a majority of the profit in Q4.

JCPenney is also making a comeback according to the group as they bring better brands into the store, fix up stores, and improve beauty floors.

Domestic property net operating income increased 4% and portfolio net operating income increased 3.9% compared to the same period last year.

Occupancy at Simon’s US malls and premium outlet centers increased 1.1 percent to 94.4%. Base minimum rent per square foot was USD 54.84 compared to USD 54.14 in Q1 of the previous year.

Reported retailer sales per square foot also saw a 3.3% increase to USD 759 per square foot.

Simon Property Group posts healthy first quarter