Simon Reports Surge in Earnings

Simon Property Group, Indianapolis, has reported net income of $55.1 million for the first quarter, an 84% rise from $30.0 million in the corresponding period of 2002.The retail real estate investment trust, the largest REIT by market capitalization in the regional mall subsector, saw its earnings per share rise 71% to $0.29 for the first quarter from $0.17 a year earlier. Simon's funds from operations, a widely used measure of earnings in the REIT industry, increased 22% to $177.4 million for the first quarter from $145.3 million a year earlier, the REIT said. "Our primary goal for 2003 is the improvement of our operating margins through increases in rental rates on new lease executions, increases in portfolio occupancy, and a continued focus on utilizing our economies of scale to drive down operating costs," said David Simon, Simon's chief executive officer. Simon can be found online at http://www.simon.com.