Simon Property Group (SPG), one of the world's leading companies engaged in development and management of retail real estate, continues to deliver robust financial results. According to the recently published set of financial results for Q3 2014, revenue increased by 7.7% y-o-y to USD 1.23 bn, outpacing consensus of USD 1.21 bn. Occupancy of malls and premium outlets in the US advanced 1.4 pps to USD 96.9%. Revenue per sq. ft. rose 5.9% to USD 613, base minimum rate jumped 10.9% to USD 46.29 per sq. ft. per month. Funds From Operations (FFO) climbed 14.3% y-o-y to USD 2.25, outstripping the median forecast of USD 2.05. The company raised quarterly dividend to USD 1.3 per share (up 8.3% y-o-y), matching a 2.9% dividend yield.Simon Property launched expansion projects of retail space at its two facilities in California (185,000 sq. ft.) and Florida (58,000 sq. ft). In addition, the company started construction of two new shopping centers in the US, while commissioning of the facilities is scheduled for October 2015. In total, 31 commercial real estate facilities of Simon Property in the US, Asia and Mexico were under construction, expansion or renovation as of end September.We are upbeat about the future prospects of Simon Property. Improving economic situation in the US positively affect the purchasing power of US consumers, promoting strong demand for retail space in the country, which accounts for 80% of the company's revenue. Given the strong performance of Q3, Simon Property revised up its FFO annual guidance to USD 8.84-8.88. We also expect the company to continue paying out generous dividends.We raised the target price of Simon Property shares to USD 197 and reiterate our Buy recommendation in the mid-term. The short-term technical target is USD 185.