INDIANAPOLIS, Nov. 1, 2024
/PRNewswire/ -- Simon®, a real estate investment
trust engaged in the ownership of premier shopping, dining,
entertainment and mixed-use destinations, today reported results
for the quarter ended September 30,
2024.
"We are pleased with our quarterly results highlighted by strong
financial and operational performance, the very successful openings
of Tulsa Premium Outlets and the expansion of Busan Premium
Outlets," said David Simon,
Chairman, Chief Executive Officer and President. "Today we
are pleased to raise our dividend for the fourth consecutive
quarter, to $2.10 per share, a
year-over-year increase of 10.5%."
Results for the Quarter
- Net income attributable to common stockholders was $475.2 million, or $1.46 per diluted share, as compared to
$594.1 million, or $1.82 per diluted share in 2023.
- Net income for the third quarter of 2024 includes a non-cash
net loss of $49.3 million, or
$0.13 per diluted share, due to a
mark-to-market in fair value adjustment of the Klépierre
exchangeable bonds the Company issued in November 2023.
- Net income for the third quarter of 2023 included non-cash
after-tax gains of $118.1 million, or
$0.32 per diluted share primarily due
to the partial sale of the Company's ownership interest in
its SPARC Group joint venture ("SPARC").
- Real Estate Funds From Operations ("Real Estate FFO") was
$1.144 billion, or $3.05 per diluted share as compared to
$1.091 billion, or $2.91 per diluted share in the prior year, an
increase of 4.8% year-over-year.
- Funds From Operations ("FFO") was $1.067
billion, or $2.84 per diluted
share as compared to $1.201 billion,
or $3.20 per diluted share in the
prior year, inclusive of the $0.13
per diluted share loss in the current period and the $0.32 per diluted share gains in the prior year
period mentioned above.
- Domestic property Net Operating Income ("NOI") increased 5.4%
and portfolio NOI increased 5.0% compared to the prior year
period.
Results for the Nine Months
- Net income attributable to common stockholders was $1.700 billion, or $5.22 per diluted share, as compared to
$1.532 billion, or $4.68 per diluted share in 2023.
- Net income for the nine months of 2024 includes an after-tax
gain of $311.1 million, or
$0.83 per diluted share from the sale
of the Company's remaining ownership interest in Authentic Brands
Group in the first quarter and a non-cash net loss of $54.1 million, or $0.14 per diluted share due to a mark-to-market
in fair value adjustments of the Klépierre exchangeable
bonds.
- Net income for the nine months of 2023 included non-cash
after-tax gains of $145.5 million or
$0.39 per diluted share due to the
gain in SPARC referenced above and a dilution of our ownership
interest in Authentic Brands Group.
- Real Estate FFO was $3.335
billion, or $8.90 per diluted
share as compared to $3.201 billion,
or $8.55 per diluted share in the
prior year, an increase of 4.1% year-over-year.
- FFO was $3.488 billion, or
$9.30 per diluted share as compared
to $3.304 billion, or $8.82 per diluted share in the prior year,
inclusive of the items referenced above.
- Domestic property NOI increased 4.8% and portfolio NOI
increased 4.6% compared to the prior year period.
U.S. Malls and Premium Outlets Operating Statistics
- Occupancy at September 30, 2024
was 96.2%, a 1.0% increase compared to 95.2% at September 30, 2023.
- Base minimum rent per square foot was $57.71 at September 30,
2024, compared to $56.41 at
September 30, 2023, an increase of
2.3%.
- Reported retailer sales per square foot was $737 for the trailing 12 months ended
September 30, 2024.
Development Activity
On August
15th, Tulsa Premium Outlets (Jenks, Oklahoma) opened with 338,000 square
feet featuring a dynamic mix of merchandise, amenities and
experiences. Simon owns 100% of this center.
On September 12th, the
184,000 square-foot, phase two expansion of Busan Premium Outlets
(Busan, South Korea) opened
featuring new fashion and sports brands, in vogue food and beverage
brands and ample gathering and green spaces. Simon owns 50%
of this center.
Capital Markets and Balance Sheet Liquidity
During the
quarter, the Company completed a senior notes offering totaling
$1.0 billion with a term of 10
years and 4.75% coupon.
The Company also amended and extended its $3.5 billion unsecured multi-currency revolving
credit facility. The facility will initially mature on
January 31, 2029 and at our sole
option, can be extended for an additional year to January 31, 2030. Based upon the Company's
current credit ratings, the interest on the new revolver for U.S.
Dollar borrowings is unchanged at SOFR plus 82.5 basis points
(inclusive of a 10 basis point SOFR spread adjustment).
During the first nine months, the Company completed 14
non-recourse mortgage loans totaling approximately $1.3 billion (U.S. dollar equivalent), of which
Simon's share was $651 million.
The weighted average interest rate on these loans was 6.13%.
As of September 30, 2024, Simon
had approximately $11.1 billion of
liquidity consisting of $3.0 billion
of cash on hand, including its share of joint venture cash, and
$8.1 billion of available capacity
under its revolving credit facilities.
Dividends
Today, Simon's Board of Directors declared a
quarterly common stock dividend of $2.10 for the fourth quarter of 2024. This
is an increase of $0.20, or 10.5%
year-over-year. The dividend will be payable on December 30, 2024 to shareholders of record on
December 9, 2024.
Simon's Board of Directors declared the quarterly dividend on
its 8 3/8% Series J Cumulative Redeemable Preferred Stock (NYSE:
SPGPrJ) of $1.046875 per share,
payable on December 30, 2024 to
shareholders of record on December
16, 2024.
2024 Guidance
The Company currently estimates net
income to be within a range of $7.18
to $7.28 per diluted share and FFO to
be within a range of $12.80 to
$12.90 per diluted share, excluding
the $0.14 per diluted share of
unrealized losses in fair value adjustments of the Klépierre
exchangeable bonds and publicly traded equity instruments, net for
the year ending December 31,
2024.
The following table provides the GAAP to non-GAAP reconciliation
for the expected range of estimated net income attributable to
common stockholders per diluted share to FFO per diluted share:
|
For the year ending December 31,
2024
|
|
|
|
|
|
|
|
|
Low
|
|
High
|
|
|
|
End
|
|
End
|
|
Estimated net income
attributable to common stockholders
|
|
|
|
|
|
per diluted
share
|
|
|
$7.18
|
|
$7.28
|
|
Depreciation and
amortization including Simon's share
|
|
|
|
|
|
|
of unconsolidated
entities
|
|
|
5.50
|
|
5.50
|
|
Gain on acquisition of
controlling interest, sale or
|
|
|
|
|
|
|
disposal of, or
recovery on, assets and interest in
|
|
|
|
|
|
|
unconsolidated entities
and impairment, net
|
|
|
(0.02)
|
|
(0.02)
|
|
Estimated FFO per
diluted share
|
|
|
$12.66
|
|
$12.76
|
|
Unrealized losses in
fair value adjustments
|
|
|
|
|
|
|
of the Klépierre
exchangeable bonds and
|
|
|
|
|
|
|
publicly traded equity
instruments, net
|
|
|
0.14
|
|
0.14
|
|
|
|
|
|
|
|
Estimated FFO per
diluted share, excluding unrealized
|
|
|
|
|
|
|
losses in fair value
adjustments of the
|
|
|
|
|
|
|
Klépierre exchangeable
bonds and
|
|
|
|
|
|
|
publicly traded equity
instruments, net
|
|
|
$12.80
|
|
$12.90
|
Conference Call
Simon will hold a conference call to
discuss the quarterly financial results today from 10:00 a.m. to 11:00 a.m. Eastern Time,
Friday, November 1, 2024. A
live webcast of the conference call will be accessible in
listen-only mode at investors.simon.com. An audio replay of
the conference call will be available until November 8, 2024. To access the audio
replay, dial 1-844-512-2921 (international +1-412-317-6671)
passcode 13749300.
Supplemental Materials and Website
Supplemental
information on our third quarter 2024 performance is available at
investors.simon.com. This information has also been furnished to
the SEC in a current report on Form 8-K.
We routinely post important information online on our investor
relations website, investors.simon.com. We use this website, press
releases, SEC filings, quarterly conference calls, presentations
and webcasts to disclose material, non-public information in
accordance with Regulation FD. We encourage members of the
investment community to monitor these distribution channels for
material disclosures. Any information accessed through our
website is not incorporated by reference into, and is not a part
of, this document.
Non-GAAP Financial Measures
This press release includes FFO, FFO per share, Real Estate FFO,
Real Estate FFO per share and portfolio NOI growth which are
financial performance measures not defined by generally accepted
accounting principles in the United
States ("GAAP"). Real estate FFO is FFO of the operating
partnership less other platform investments and gain on disposal,
exchange, or revaluation of equity interests, in each case, net of
tax; and unrealized losses (gains) in fair value of publicly traded
equity instruments and derivative instrument, net.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP measures are included in this press
release and in Simon's supplemental information for the
quarter. FFO and NOI growth are financial performance
measures widely used in the REIT industry. Our definitions of these
non-GAAP measures may not be the same as similar measures reported
by other REITs.
Forward-Looking Statements
Certain statements made in this press release may be deemed
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Although the Company
believes the expectations reflected in any forward-looking
statements are based on reasonable assumptions, the Company can
give no assurance that its expectations will be attained, and it is
possible that the Company's actual results may differ materially
from those indicated by these forward–looking statements due to a
variety of risks, uncertainties and other factors. Such factors
include, but are not limited to: changes in economic and market
conditions that may adversely affect the general retail
environment, including but not limited to those caused by
inflation, recessionary pressures, wars, escalating geopolitical
tensions as a result of the war in Ukraine and the conflicts in the Middle East, and supply chain disruptions; the
inability to renew leases and relet vacant space at existing
properties on favorable terms; the inability to collect rent due to
the bankruptcy or insolvency of tenants or otherwise; the potential
loss of anchor stores or major tenants; an increase in vacant space
at our properties; the potential for violence, civil unrest,
criminal activity or terrorist activities at our properties;
natural disasters; the availability of comprehensive insurance
coverage; the intensely competitive market environment in the
retail industry, including e-commerce; security breaches that could
compromise our information technology or infrastructure; reducing
emissions of greenhouse gases; environmental liabilities; our
international activities subjecting us to risks that are different
from or greater than those associated with our domestic operations,
including changes in foreign exchange rates; our continued ability
to maintain our status as a REIT; changes in tax laws or
regulations that result in adverse tax consequences; risks
associated with the acquisition, development, redevelopment,
expansion, leasing and management of properties; the inability to
lease newly developed properties on favorable terms; the loss of
key management personnel; uncertainties regarding the impact of
pandemics, epidemics or public health crises, and the associated
governmental restrictions on our business, financial condition,
results of operations, cash flow and liquidity; changes in market
rates of interest; the impact of our substantial indebtedness on
our future operations, including covenants in the governing
agreements that impose restrictions on us that may affect our
ability to operate freely; any disruption in the financial markets
that may adversely affect our ability to access capital for growth
and satisfy our ongoing debt service requirements; any change in
our credit rating; risks relating to our joint venture properties,
including guarantees of certain joint venture indebtedness; and
general risks related to real estate investments, including the
illiquidity of real estate investments.
The Company discusses these and other risks and uncertainties
under the heading "Risk Factors" in its annual and quarterly
periodic reports filed with the SEC. The Company may update
that discussion in subsequent other periodic reports, but except as
required by law, the Company undertakes no duty or obligation to
update or revise these forward-looking statements, whether as a
result of new information, future developments, or otherwise.
About Simon
Simon® is a real estate
investment trust engaged in the ownership of premier shopping,
dining, entertainment and mixed-use destinations and an S&P 100
company (Simon Property Group, NYSE: SPG). Our properties across
North America, Europe and Asia provide community gathering places for
millions of people every day and generate billions in annual
sales.
|
Simon Property
Group, Inc.
Unaudited Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
|
|
|
For the Three
Months
|
|
For the Nine
Months
|
|
Ended September
30,
|
|
Ended September
30,
|
|
2024
|
2023
|
|
2024
|
2023
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
Lease income
|
$
1,339,824
|
$ 1,298,737
|
|
$
3,958,236
|
$ 3,801,880
|
|
Management fees and
other revenues
|
33,461
|
30,055
|
|
96,103
|
92,511
|
|
Other income
|
107,425
|
82,156
|
|
327,227
|
237,007
|
|
Total
revenue
|
1,480,710
|
1,410,948
|
|
4,381,566
|
4,131,398
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
|
Property
operating
|
141,114
|
136,541
|
|
398,520
|
366,553
|
|
Depreciation and
amortization
|
320,365
|
315,259
|
|
937,749
|
941,851
|
|
Real estate
taxes
|
93,999
|
115,456
|
|
299,848
|
338,452
|
|
Repairs and
maintenance
|
23,019
|
22,660
|
|
73,272
|
67,837
|
|
Advertising and
promotion
|
34,138
|
28,809
|
|
101,046
|
86,713
|
|
Home and regional
office costs
|
53,351
|
47,679
|
|
164,556
|
154,505
|
|
General and
administrative
|
9,171
|
9,070
|
|
29,141
|
28,235
|
|
Other
|
37,784
|
41,240
|
|
120,384
|
132,369
|
|
Total operating
expenses
|
712,941
|
716,714
|
|
2,124,516
|
2,116,515
|
|
|
|
|
|
|
|
OPERATING INCOME
BEFORE OTHER ITEMS
|
767,769
|
694,234
|
|
2,257,050
|
2,014,883
|
|
|
|
|
|
|
|
Interest
expense
|
(226,424)
|
(212,210)
|
|
(678,382)
|
(629,725)
|
|
Gain on disposal,
exchange, or revaluation of equity interests, net
|
-
|
158,192
|
|
414,769
|
194,629
|
|
Income and other tax
expense
|
(2,605)
|
(43,218)
|
|
(55,170)
|
(40,252)
|
|
Income from
unconsolidated entities
|
58,504
|
95,480
|
|
66,375
|
207,835
|
|
Unrealized (losses)
gains in fair value of publicly traded equity instruments
and
|
|
|
|
|
|
|
derivative instrument,
net
|
(49,345)
|
(6,175)
|
|
(54,132)
|
20,049
|
|
(Loss) gain on
acquisition of controlling interest, sale or disposal of, or
recovery on,
|
|
|
|
|
|
|
assets and interests in
unconsolidated entities and impairment, net
|
(1,228)
|
(5,541)
|
|
6,752
|
(9,897)
|
|
|
|
|
|
|
|
CONSOLIDATED NET
INCOME
|
546,671
|
680,762
|
|
1,957,262
|
1,757,522
|
|
|
|
|
|
|
|
Net income attributable
to noncontrolling interests
|
70,676
|
85,789
|
|
254,431
|
222,710
|
|
Preferred
dividends
|
834
|
834
|
|
2,503
|
2,503
|
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
475,161
|
$ 594,139
|
|
$
1,700,328
|
$ 1,532,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
1.46
|
$ 1.82
|
|
$
5.22
|
$ 4.68
|
|
|
|
|
|
|
|
Simon Property
Group, Inc.
Unaudited Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
|
|
|
September
30,
|
December 31,
|
|
2024
|
2023
|
|
ASSETS:
|
|
|
|
Investment properties,
at cost
|
$
39,939,215
|
$ 39,285,138
|
|
Less - accumulated
depreciation
|
18,625,523
|
17,716,788
|
|
21,313,692
|
21,568,350
|
|
Cash and cash
equivalents
|
2,170,102
|
1,168,991
|
|
Short-term
investments
|
300,000
|
1,000,000
|
|
Tenant receivables and
accrued revenue, net
|
767,756
|
826,126
|
|
Investment in TRG, at
equity
|
2,870,048
|
3,049,719
|
|
Investment in
Klépierre, at equity
|
1,463,679
|
1,527,872
|
|
Investment in other
unconsolidated entities, at equity
|
2,628,159
|
3,540,648
|
|
Right-of-use assets,
net
|
521,386
|
484,073
|
|
Deferred costs and
other assets
|
1,241,096
|
1,117,716
|
|
Total
assets
|
$
33,275,918
|
$ 34,283,495
|
|
|
|
|
LIABILITIES:
|
|
|
|
Mortgages and unsecured
indebtedness
|
$
25,417,558
|
$ 26,033,423
|
|
Accounts payable,
accrued expenses, intangibles, and deferred revenues
|
1,619,747
|
1,693,248
|
|
Cash distributions and
losses in unconsolidated entities, at equity
|
1,733,935
|
1,760,922
|
|
Dividend
payable
|
2,069
|
1,842
|
|
Lease
liabilities
|
522,091
|
484,861
|
|
Other
liabilities
|
658,282
|
621,601
|
|
Total
liabilities
|
29,953,682
|
30,595,897
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
Limited partners'
preferred interest in the Operating Partnership and
noncontrolling
|
|
|
|
redeemable
interests
|
182,879
|
195,949
|
|
|
|
|
EQUITY:
|
|
|
|
Stockholders'
Equity
|
|
|
|
Capital stock
(850,000,000 total shares authorized, $0.0001 par value,
238,000,000
|
|
|
|
shares of excess common
stock, 100,000,000 authorized shares of preferred
stock):
|
|
|
|
|
|
|
Series J 8 3/8%
cumulative redeemable preferred stock, 1,000,000 shares
authorized,
|
|
|
|
796,948 issued and
outstanding with a liquidation value of $39,847
|
40,860
|
41,106
|
|
|
|
|
Common stock, $0.0001
par value, 511,990,000 shares authorized, 342,945,839
and
|
|
|
|
342,895,886 issued and
outstanding, respectively
|
33
|
33
|
|
|
|
|
Class B common stock,
$0.0001 par value, 10,000 shares authorized, 8,000
|
|
|
|
issued and
outstanding
|
-
|
-
|
|
|
|
|
Capital in excess of
par value
|
11,343,428
|
11,406,236
|
|
Accumulated
deficit
|
(6,358,449)
|
(6,095,576)
|
|
Accumulated other
comprehensive loss
|
(206,340)
|
(172,787)
|
|
Common stock held in
treasury, at cost, 16,675,701 and 16,983,364 shares,
respectively
|
(2,106,396)
|
(2,156,178)
|
|
Total stockholders'
equity
|
2,713,136
|
3,022,834
|
|
Noncontrolling
interests
|
426,221
|
468,815
|
|
Total
equity
|
3,139,357
|
3,491,649
|
|
Total liabilities
and equity
|
$
33,275,918
|
$ 34,283,495
|
|
Simon Property
Group, Inc.
|
|
Unaudited Joint
Venture Combined Statements of Operations
|
|
(Dollars in
thousands)
|
|
|
For the Three Months
Ended September 30,
|
|
For the Nine Months
Ended September 30,
|
|
2024
|
2023
|
|
2024
|
2023
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
Lease income
|
$
763,185
|
$ 743,388
|
|
$
2,257,101
|
$ 2,212,197
|
|
Other income
|
92,151
|
129,021
|
|
277,915
|
357,261
|
|
Total
revenue
|
855,336
|
872,409
|
|
2,535,016
|
2,569,458
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
Property
operating
|
171,027
|
165,406
|
|
494,210
|
475,364
|
|
Depreciation and
amortization
|
155,472
|
159,560
|
|
473,394
|
483,361
|
|
Real estate
taxes
|
56,683
|
63,607
|
|
180,967
|
192,550
|
|
Repairs and
maintenance
|
17,382
|
19,034
|
|
55,016
|
55,452
|
|
Advertising and
promotion
|
20,098
|
19,188
|
|
63,292
|
58,702
|
|
Other
|
53,225
|
63,696
|
|
161,735
|
180,213
|
|
Total operating
expenses
|
473,887
|
490,491
|
|
1,428,614
|
1,445,642
|
|
|
|
|
|
|
|
OPERATING INCOME
BEFORE OTHER ITEMS
|
381,449
|
381,918
|
|
1,106,402
|
1,123,816
|
|
|
|
|
|
|
|
Interest
expense
|
(176,583)
|
(172,523)
|
|
(532,692)
|
(508,230)
|
|
Gain on sale or
disposal of, or recovery on, assets and interests in
unconsolidated entities, net
|
-
|
19,395
|
|
-
|
20,529
|
|
|
|
|
|
|
|
NET
INCOME
|
$
204,866
|
$ 228,790
|
|
$
573,710
|
$ 636,115
|
|
|
|
|
|
|
|
Third-Party
Investors' Share of Net Income
|
$
104,298
|
$ 124,272
|
|
$
291,517
|
$ 329,338
|
|
|
|
|
|
|
|
Our Share of Net
Income
|
100,568
|
104,518
|
|
282,193
|
306,777
|
|
Amortization of
Excess Investment (A)
|
(14,404)
|
(14,933)
|
|
(43,564)
|
(44,781)
|
|
Our Share of Gain on
Sale or Disposal of, or Recovery on, Assets
and Interests in Unconsolidated Entities, net
|
|
|
|
|
|
|
-
|
-
|
|
-
|
(454)
|
|
|
|
|
|
|
|
Income from
Unconsolidated Entities (B)
|
$
86,164
|
$ 89,585
|
|
$
238,629
|
$ 261,542
|
|
|
|
|
|
|
|
Note: The above
financial presentation does not include any information related to
our investments in Klépierre S.A.
|
|
("Klépierre"), The Taubman Realty Group ("TRG") and other platform
investments. For additional information, see footnote B.
|
|
Simon Property
Group, Inc.
|
|
Unaudited Joint
Venture Combined Balance Sheets
|
|
(Dollars in
thousands)
|
|
|
|
September
30,
|
December
31,
|
|
|
2024
|
2023
|
|
|
Assets:
|
|
|
|
|
Investment properties,
at cost
|
$
19,550,692
|
$ 19,315,578
|
|
|
Less - accumulated
depreciation
|
9,183,068
|
8,874,745
|
|
|
10,367,624
|
10,440,833
|
|
|
Cash and cash
equivalents
|
1,260,075
|
1,372,377
|
|
|
Tenant receivables and
accrued revenue, net
|
503,076
|
505,933
|
|
|
Right-of-use assets,
net
|
117,035
|
126,539
|
|
|
Deferred costs and
other assets
|
566,932
|
537,943
|
|
|
Total assets
|
$
12,814,742
|
$ 12,983,625
|
|
|
|
|
|
|
Liabilities and
Partners' Deficit:
|
|
|
|
|
Mortgages
|
$
14,104,896
|
$ 14,282,839
|
|
|
Accounts payable,
accrued expenses, intangibles, and deferred revenue
|
974,080
|
1,032,217
|
|
|
Lease
liabilities
|
107,418
|
116,535
|
|
|
Other
liabilities
|
380,694
|
368,582
|
|
|
Total
liabilities
|
15,567,088
|
15,800,173
|
|
|
|
|
|
|
Preferred
units
|
67,450
|
67,450
|
|
|
Partners'
deficit
|
(2,819,796)
|
(2,883,998)
|
|
|
Total liabilities and
partners' deficit
|
$
12,814,742
|
$ 12,983,625
|
|
|
|
|
|
|
Our Share
of:
|
|
|
|
|
Partners'
deficit
|
$
(1,194,144)
|
$
(1,258,809)
|
|
|
Add: Excess Investment
(A)
|
1,109,624
|
1,173,852
|
|
|
Our net Investment in
unconsolidated entities, at equity
|
$
(84,520)
|
$ (84,957)
|
|
|
|
Note: The above
financial presentation does not include any information related to
our investments in Klépierre,
|
|
|
TRG and other platform investments. For additional information, see
footnote B.
|
|
|
Simon Property
Group, Inc.
|
|
Unaudited
Reconciliation of Non-GAAP Financial Measures (C)
|
|
(Amounts in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Consolidated Net Income to FFO
and Real Estate FFO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Income (D)
|
|
$ 546,671
|
|
$ 680,762
|
|
$
1,957,262
|
|
$
1,757,522
|
|
Adjustments to
Arrive at FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from consolidated
|
|
|
|
|
|
|
|
|
properties
|
|
|
316,593
|
|
313,053
|
|
926,582
|
|
933,669
|
|
Our share of
depreciation and amortization from
|
|
|
|
|
|
|
|
|
unconsolidated entities,
including Klépierre, TRG and other corporate investments
|
209,225
|
|
207,607
|
|
630,460
|
|
622,258
|
|
Loss (gain) on
acquisition of controlling interest, sale or disposal of, or
recovery on,
|
|
|
|
|
|
|
|
|
assets and interests in
unconsolidated entities and impairment, net
|
1,228
|
|
5,541
|
|
(6,752)
|
|
9,897
|
|
Net loss attributable
to noncontrolling interest holders in
|
|
|
|
|
|
|
|
|
properties
|
|
|
1,047
|
|
1,149
|
|
1,733
|
|
751
|
|
Noncontrolling
interests portion of depreciation and amortization, gain on
consolidation of properties,
|
|
|
|
|
|
|
|
|
and loss (gain) on
disposal of properties
|
(6,820)
|
|
(6,045)
|
|
(17,416)
|
|
(16,255)
|
|
Preferred distributions
and dividends
|
(1,239)
|
|
(1,313)
|
|
(3,772)
|
|
(3,939)
|
|
FFO of the Operating
Partnership
|
$
1,066,705
|
|
$
1,200,754
|
|
$
3,488,097
|
|
$
3,303,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO of the Operating
Partnership
|
$
1,066,705
|
|
$
1,200,754
|
|
$
3,488,097
|
|
$
3,303,903
|
|
Gain on disposal,
exchange, or revaluation of equity interests, net of tax
|
-
|
|
(118,138)
|
|
(311,077)
|
|
(145,466)
|
|
Other platform
investments, net of tax
|
28,306
|
|
1,969
|
|
104,089
|
|
62,647
|
|
Unrealized losses
(gains) in fair value of publicly traded equity instruments and
derivative instrument, net
|
49,345
|
|
6,175
|
|
54,132
|
|
(20,049)
|
|
Real Estate
FFO
|
|
|
$
1,144,356
|
|
$
1,090,760
|
|
$
3,335,241
|
|
$
3,201,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share to diluted FFO per share reconciliation:
|
|
|
|
|
|
|
|
|
Diluted net income
per share
|
|
$
1.46
|
|
$
1.82
|
|
$
5.22
|
|
$
4.68
|
|
Depreciation and
amortization from consolidated properties
|
|
|
|
|
|
|
|
|
and our share of
depreciation and amortization from unconsolidated
|
|
|
|
|
|
|
|
|
entities, including
Klépierre, TRG and other corporate investments, net of
noncontrolling
|
|
|
|
|
|
|
|
|
interests portion of
depreciation and amortization
|
1.37
|
|
1.37
|
|
4.10
|
|
4.11
|
|
Loss (gain) on
acquisition of controlling interest, sale or disposal of, or
recovery on,
|
|
|
|
|
|
|
|
|
assets and interests in
unconsolidated entities and impairment, net
|
0.01
|
|
0.01
|
|
(0.02)
|
|
0.03
|
|
Diluted FFO per
share
|
|
$
2.84
|
|
$
3.20
|
|
$
9.30
|
|
$
8.82
|
|
Gain on disposal,
exchange, or revaluation of equity interests, net of tax
|
-
|
|
(0.32)
|
|
(0.83)
|
|
(0.39)
|
|
Other platform
investments, net of tax
|
0.08
|
|
0.01
|
|
0.29
|
|
0.17
|
|
Unrealized losses
(gains) in fair value of publicly traded equity instruments and
derivative instrument, net
|
0.13
|
|
0.02
|
|
0.14
|
|
(0.05)
|
|
Real Estate FFO per
share
|
|
$
3.05
|
|
$
2.91
|
|
$
8.90
|
|
$
8.55
|
|
|
|
|
|
4.8 %
|
|
|
|
4.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details for per share
calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO of the Operating
Partnership
|
|
$
1,066,705
|
|
$
1,200,754
|
|
$
3,488,097
|
|
$
3,303,903
|
|
Diluted FFO allocable
to unitholders
|
(139,191)
|
|
(152,599)
|
|
(454,729)
|
|
(418,135)
|
|
Diluted FFO allocable
to common stockholders
|
$ 927,514
|
|
$
1,048,155
|
|
$
3,033,368
|
|
$
2,885,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares outstanding
|
326,158
|
|
327,159
|
|
326,036
|
|
327,101
|
|
Weighted average
limited partnership units outstanding
|
48,939
|
|
47,658
|
|
48,876
|
|
47,396
|
|
Basic and Diluted
weighted average shares and units outstanding
|
375,097
|
|
374,817
|
|
374,912
|
|
374,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted FFO
per Share
|
|
$
2.84
|
|
$
3.20
|
|
$
9.30
|
|
$
8.82
|
|
Percent Change
|
|
|
-11.3 %
|
|
|
|
5.4 %
|
|
|
|
Simon Property
Group, Inc.
|
|
Footnotes to
Unaudited Financial Information
|
|
|
|
Notes:
|
|
|
|
(A)
|
Excess investment
represents the unamortized difference of our investment over equity
in the underlying net assets of the related partnerships and joint
ventures shown therein. The Company generally amortizes
excess investment over the life of the related assets.
|
|
|
|
(B)
|
The Unaudited Joint
Venture Combined Statements of Operations do not include any
operations or our share of net income or excess investment
amortization related to our investments in Klépierre, TRG and other
platform investments. Amounts included in Footnote D below
exclude our share of related activity for our investments in
Klépierre, TRG and other platform investments. For further
information on Klépierre, reference should be made to financial
information in Klépierre's public filings and additional discussion
and analysis in our Form 10-K.
|
|
|
|
(C)
|
This report contains
measures of financial or operating performance that are not
specifically defined by GAAP, including FFO, FFO per share, Real
Estate FFO and Real Estate FFO per share. FFO is a
performance measure that is standard in the REIT business. We
believe FFO provides investors with additional information
concerning our operating performance and a basis to compare our
performance with those of other REITs. We also use these
measures internally to monitor the operating performance of our
portfolio. Our computation of these non-GAAP measures may not be
the same as similar measures reported by other REITs.
|
|
|
|
We determine FFO based
upon the definition set forth by the National Association of Real
Estate Investment Trusts ("NAREIT") Funds From Operations White
Paper - 2018 Restatement. Our main business includes acquiring,
owning, operating, developing, and redeveloping real estate in
conjunction with the rental of retail real estate. Gains and
losses of assets incidental to our main business are included in
FFO. We determine FFO to be our share of consolidated net
income computed in accordance with GAAP, excluding real estate
related depreciation and amortization, excluding gains and losses
from extraordinary items, excluding gains and losses from the sale,
disposal or property insurance recoveries of, or any impairment
related to, depreciable retail operating properties, plus the
allocable portion of FFO of unconsolidated joint ventures based
upon economic ownership interest, and all determined on a
consistent basis in accordance with GAAP. However, you should
understand that FFO does not represent cash flow from operations as
defined by GAAP, should not be considered as an alternative to net
income determined in accordance with GAAP as a measure of operating
performance, and is not an alternative to cash flows as a measure
of liquidity.
|
|
|
|
(D)
|
Includes our share
of:
|
|
|
|
-
|
Gain on land sales of
$7.8 million and $3.2 million for the three months ended September
30, 2024 and 2023, respectively, and $15.3 million and $7.8 million
for the nine months ended September 30, 2024 and 2023,
respectively.
|
|
|
|
-
|
Straight-line
adjustments increased (decreased) income by $3.7 million and $1.4
million for the three months ended September 30, 2024 and 2023,
respectively, and ($5.1) million and ($10.4) million for the nine
months ended September 30, 2024 and 2023, respectively.
|
|
|
|
-
|
Amortization of fair
market value of leases increased income by $0.1 million and $0.0
million for the three months ended September 30, 2024 and 2023,
respectively, and $0.4 million and $0.2 million for the nine months
ended September 30, 2024 and 2023, respectively.
|
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