S&P Global Market Intelligence presents a wrap-up of earnings conference calls from May 6 through May 7.
Occupancy, rent up at Simon Property's US malls, premium outlets
Simon Property Group Inc. logged occupancy of 95.5% at March 31 at its US malls and premium outlets, up 1.1% from 94.4% a year ago. Base minimum rent per square foot climbed 3.0% year over year to $57.53 from $55.84.
Chairman, CEO & President David Simon said continued leasing momentum and resilient consumer spending helped deliver results that exceeded the company's plans. "We signed more than 1,300 leases for approximately 6.3 million square feet. Approximately 25% of our leasing activity in the first quarter was new deal volume. We are approximately 65% complete with our 24 lease expirations, and we continue to see strong broad-based demand from the retail community," Simon said.
Read the call transcript and Dow Jones Newswires coverage.
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Vornado projects lower 2024 FFO due to net interest expense
New York office landlord Vornado Realty Trust expects its comparable funds from operations in 2024 to be lower than 2023 primarily due to higher projected net interest expense of about 30 cents per share and the impact of vacancies in properties including 1290 Avenue of the Americas, 770 Broadway, 280 Park Avenue, President and CFO Michael Franco said.
"We anticipate the impact of these expirations in 2024 to be roughly 25 to 30 cents per share. We expect this impact to be temporary as we have already leased up a good chunk of this space but the GAAP earnings from these leases won't begin until sometime in 2025," Franco said.
Read the call transcript and Dow Jones Newswires coverage.
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Realty Income expects property transaction pickup once rate cut path becomes clear
Realty Income Corp. expects more property transactions in the US to materialize in the second half of 2024. "We do believe that once the environment becomes a little clearer in terms of what's going to happen with rates and when will those potential rate cuts come to fruition, I think the transaction market in the US will catch up," Realty Income President and CEO Sumit Roy said.
The REIT invested $598 million in retail, industrial and data center properties in the first quarter, broken down into $323 million in Europe and the UK and $275 million in the US. Roy attributed the REIT's modest investment in the US to confusion over where the interest rates are heading.
Read the call transcript and Dow Jones Newswires coverage.
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Rising demand, limited supply drive Healthcare Realty's leasing
Healthcare Realty Trust Inc. reported strong leasing in the first quarter brought about by rising demand and limited supply. "Occupancy across the sector is climbing, and new medical outpatient building starts are continuing to decelerate. This quarter, we saw the largest year-over-year decline in starts since the pandemic," said Robert Hull, Healthcare Realty vice president of investments. New signed leases during the quarter stood at about 440,000 square feet, while multi-tenant occupancy improved by 57,000 square feet.
The REIT expects fewer move-outs for the rest of 2024, as its expiration schedule averages just over 1 million square feet per quarter, about 60% less than the first quarter.
Read the call transcript and Dow Jones Newswires coverage.
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Read the previous earnings calls wrap-up.