Simon Property Group, a leading global retail real estate investment trusts (REIT), issued solid financials for the fourth quarter of 2015. Revenue increased 6.4% y-o-y to $1.38 bn and surpassed consensus estimate of $1.35 bn. For the US Malls and Premium Outlets portfolio, occupancy fell 100 basis points to 96.1%. However, total sales per square foot moved up 0.1% to $620 driven by base minimum rent per square feet growth of 4.1% to $48.96, while releasing spread increased 140 basis points to 18%. The company reported funds from operations (FFO) of $2.40 per share, down from $2.47 per share in the year-ago quarter. However, excluding a loss on debt extinguishment, adjusted FFO rose 10.5% to $2.73 per share. Analysts’ average projection for the quarterly FFO per share was $2.44. Concurrent with its earnings release, Simon Property declared a quarterly dividend of $1.60 per share, up 14.3% y-o-y. This offers a healthy annualized dividend yield of 3.4%. Besides, the company introduced 2016 FFO per share guidance in the range of USD 10.7-10.8, which implies a 9% growth from the 2015 figure. In Q4, Simon Property opened Tucson Premium Outlets, a 367,000-square foot center, and Tampa Premium Outlets, a 441,000 square feet name brand stores. The REIT also completed a 260,000 square foot expansion at Del Amo Fashion Center, and a 56,000 square foot expansion at Sawgrass Mills. Construction is also underway at other important expansion projects including Roosevelt Field, King of Prussia Mall, Stanford Shopping Center, The Galleria in Houston and Woodbury Common Premium Outlets. At the end of the fourth quarter, Simon Property had redevelopment and expansion projects in progress at 29 properties across the US and Europe. My outlook for Simon Property remains optimistic. With the US economy showing signs of recovery, spending power of richer consumers is improving, and the company looks well positioned to leverage this trend. Shares of Simon Property are currently testing 50-day moving average as well as downside trend line. I'd buy on breaking them, with medium-term target at $210. $SPG, Simon Property Group, Inc. / 1440