Simon Property Group Inc's first-quarter revenue beat market expectations on Tuesday, benefiting from a strong leasing demand after pandemic-induced store closures.

Despite growing fears of a recession in the United States, mall operators are seeing a rise in leasing demand from tenants occupying mall spaces to cater to customers.

"Tenant demand is excellent, and brick-and-mortar stores are where shoppers want to be," Chief Executive David Simon said on a post-earnings call.

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Occupancy rate came in at 94.4% in the first quarter, compared to 93.3% a year ago. The company saw base minimum rent per square foot increase 3.1% to $55.84.

During the quarter, store openings included brands such as Steve Madden, Five Below, JCPenney, Starbucks and Hollister, according to UBS data.

The company also raised the lower end of its 2023 profit and comparable funds from operation (FFO) per diluted share forecasts.

It now expects annual profit in the range of $6.45 to $6.60 per share, mid-point of which is above previous forecast of $6.35 and $6.60.

Simon Property now expects 2023 comparable FFO per diluted share in the range of $11.80 to $11.95, compared with prior outlook of $11.70 and $11.95.

However, it reported a profit of $1.38 per share compared with expectations of $1.39. FFO for the quarter came in at $1.03 billion, or $2.74 per share, compared with expectations of $967.3 million, or $2.81 per share.

Simon Property's net revenue from lease income rose 3.3% to $1.25 billion in the quarter ended March 31, slightly above analysts' estimates of $1.24 billion.