UPDATE: Simon Property 4Q Net Up 66% On Higher Rents; Dividend Up 5.6%

Simon Property Group Inc.'s (SPG) fourth-quarter earnings rose 66% as the nation's largest mall owner booked higher average rents and increased occupancy.

Simon is the first of the major mall real estate investment trust to report its quarterly earnings ahead of Macerich Co. later this session and General Growth Properties next week. The company's earnings handily beat analysts expectations and continue to underscore the advantage large operators of high-end malls and outlet centers have in a slow economy.

In addition, strengthening retail sales over the past 12 months have given mall landlords more leverage to raise rates as they sign leases more retailers.

Funds from operations, a key profit metric for REITs, rose to $1.91 a share from $1.80 a year ago, topping the $1.90 expected by analysts. Meanwhile, occupancy at the company's U.S. regional malls and premium outlets increased to 94.8% from 94.5% a year earlier and 93.9% at the end of the third quarter. After the results, the company's share price ticked up 0.44% to $138.05 in pre-market trading.

Citing strong recent performance and its expectations for the year ahead, the real estate investment trust also raised its quarterly dividend to 95 cents a share from 90 cents.

Looking to 2012, the company called for earnings of $3.28 to $3.38 a share, well ahead of the $3.15 currently expected by analysts polled by Thomson Reuters. Funds from operations was estimated at $7.20 to $7.30 a share. Analysts currently expect funds from operations of $7.28.

With its interest in nearly 400 properties and rents on the rise, Simon Property is considered by many analysts to be among the strongest companies in the REIT industry.

The company reported a profit of $363.8 million, up from a year-earlier profit of $218.8 million. Per-share earnings, reflecting the payment of preferred dividends, rose to $1.24 from 74 cents a year earlier.

Revenue improved 4.6% to $1.17 billion. Analysts expected earnings of 90 cents a share on $1.16 billion in revenue.

Average rents were up 4.4% from a year earlier.

-By A.D. Pruitt, Dow Jones Newswires; 212-416-2197; angela.pruitt@dowjones.com;

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