At the outlet centers, occupancy rose 120 basis points to 99.2 percent, sales increased 7.3 percent to $426 per square foot, and average rent was up 7

NEW YORK, July 28 (Reuters) - Simon Property Group Inc. (SPG.N: Quote, Profile, Research) on Thursday said second-quarter funds from operations, a key profit measure, rose 30 percent, boosted by higher rents, sales and occupancy at its malls and outlet centers.
The No. 1 U.S. mall owner also raised its outlook for the year, and its shares reached a record high.
Funds from operations rose to $349.4 million, or $1.18 per share, from $268.5 million, or $1.01 per share, a year earlier. Analysts on average were expecting $1.12 per share, according to Reuters Estimates.
Revenue rose 28 percent to $756.3 million.
"The quarter was very strong, supporting our view that regional malls are the most attractive sector for investment," Bear Stearns analyst Ross Smotrich wrote in a research note.
Last year, Simon entered the high-end outlet business by purchasing Chelsea Property, which has centers in Japan and is expanding in Asia.
Since then, Simon has moved further into Asia. In April, the company said it would team up with Seoul-based Shinsegae Co Ltd. (004170.K: Quote, Profile, Research) and Shinsegae International Co. Ltd. to develop Premium Outlet centers in South Korea.
In May, Simon opened a regional office in Hong Kong. More recently, it teamed up with Morgan Stanley Real Estate Funds and a unit of Chinese state-owned Shenzhen International Trust & Investment Co. Ltd. to develop retail shopping center projects anchored by Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) in China.
Funds from operation measure the operating cash a company generates by removing the profit-reducing effect depreciation -- a noncash accounting item -- has on earnings. The figure, which usually excludes debt restructuring and gains and losses from the sale of depreciable property, is accepted as a more accurate measure of performance for real estate investment trusts than net income.
Simon reported net income of $154.8 million, or 70 cents per share, available to common shareholders, up from $70.7 million, or 34 cents per share, a year earlier.
For the full year, the Indianapolis-based company said it expected funds from operations of $4.80 to $4.85 per share, up from its prior forecast of $4.75 to $4.82. Analysts on average forecast $4.84, according to Reuters Estimates.
Simon expects full-year net income of $1.67 to $1.72 per share.
During the second quarter, Simon saw occupancy at its regional malls rise 90 basis points to 92.2 percent, with sales up 5.5 percent to $442 per square foot and average rent up 3.8 percent to $34.16 per square foot.
At the outlet centers, occupancy rose 120 basis points to 99.2 percent, sales increased 7.3 percent to $426 per square foot, and average rent was up 7.9 percent at $22.83.
Occupancy at Simon's smaller shopping centers was unchanged at 91.5 percent. Sales rose 2.3 percent to $218 per square foot, and average rent increased 3.3 percent to $11.13 per square foot.
Shares of Simon hit a record high of $79.55, up 86 cents, or 1.1 percent, in morning