Analyst Note
| Kevin Brown, CFA |Simon Property Group reported third-quarter results that were in line with our expectations, leading us to reaffirm our $160 fair value estimate for the no-moat company. Occupancy improved 60 basis points sequentially, ahead of our estimate of flat growth, and 170 basis points year over year to 94.5%. Minimum rent paid per square foot increased 1.7% year over year, leading to same-store net operating income growth of 2.3% in the third quarter. While Simon's NOI from retail investments fell to $87.5 million from $140.4 million in the third quarter of 2021, this quarter's result was in line with our estimate of $85 million retail NOI. As a result, total NOI for Simon fell 0.3% year over year, in line with our estimate. The company reported comparable funds from operations of $2.97 per share in the third quarter, a penny better than our estimate and 5 cents better than the $2.92 figure reported in the third quarter of 2021.