INDIANAPOLIS, Feb. 8, 2021 /PRNewswire/ -- Simon, a global
leader in the ownership of premier shopping, dining, entertainment
and mixed-use destinations, today reported results for the quarter
and twelve months ended December 31,
2020.
"2020 was a difficult year for all those affected by COVID-19,
including our Company," said David
Simon, Chairman, Chief Executive Officer and
President. "We feel confident we have turned the corner, and
we expect growth in earnings and cash flow in 2021."
"Even with the unprecedented operating environment over the past
year, we:
- generated over $2.3 billion in
operating cash flow;
- acquired an 80% interest in The Taubman Realty Group;
- made strategic investments in widely recognized retail brands
at attractive valuations and have already made significant progress
in repositioning these brands and increasing their operating cash
flow;
- raised over $13 billion in the
debt and equity markets;
- opened two new international shopping destinations, expanded
two others and completed three domestic redevelopments;
- granted approximately $400
million in tenant rent abatements to support small and local
businesses, regional entrepreneurs and restauranteurs;
- paid nearly $700 million in real
estate taxes (an increase from 2019) despite losing approximately
13,500 shopping days in our domestic portfolio during the year as a
result of the restrictive governmental orders placed on our retail
real estate and
- returned more than $2 billion to
shareholders in cash dividends paid."
Results for the Year
- Net income attributable to common stockholders was $1.109 billion, or $3.59 per diluted share for the twelve months
ended December 31, 2020. Results for
2020 include non-cash impairment charges, partially offset by a
gain on sale, of $115.0 million, or
$0.32 per diluted share.
- Funds From Operations ("FFO") was $3.237
billion, or $9.11 per diluted
share for the year ended 2020. FFO for the year ended 2020 was
negatively impacted by $2.67 per
diluted share primarily due to reduced revenues from the Company's
domestic and international operations caused by the impact of the
COVID-19 pandemic, partially offset by cost reduction
initiatives.
- Portfolio net operating income ("NOI") for the full year 2020
declined 17.1%. The year-over-year decline is primarily due to
reduced revenues from tenant rent abatements, higher uncollectible
rents, lower sales-based rents and a reduction in ancillary
property income, including Simon Brand Ventures sponsorship income,
partially offset by cost reduction initiatives. The Company did not
amortize any rent abatements; instead, abatements were expensed in
the period granted.
Results for the Quarter
- Net income attributable to common stockholders was $271.5 million, or $0.86 per diluted share for the three months
ended December 31, 2020. The current
year period includes a non-cash impairment charge, partially offset
by a gain on sale, of $16.8 million,
or $0.05 per diluted share.
- FFO was $786.6 million, or
$2.17 per diluted share. FFO in the
current year period was negatively impacted by $0.95 primarily due to reduced revenues from the
Company's domestic and international operations caused by the
impact of the COVID-19 pandemic, partially offset by cost reduction
initiatives.
- Portfolio NOI for the three months ended December 31, 2020 declined 23.9%.
U.S. Malls and Premium Outlets Operating Statistics
- Occupancy was 91.3% at December 31,
2020.
- Base minimum rent per square foot was $55.80 at December 31,
2020, an increase of 2.2% year-over-year.
Business Update
As of February
5, 2021, the Company has collected from its U.S. retail
portfolio, 90% of its net billed rents for the second, third and
fourth quarters, combined.
($
millions)
|
Q2
2020
|
|
through
|
|
Q4
2020
|
U.S. Managed
Portfolio Gross Contractual Rents
|
$4,762
|
Rent Write-Offs
Related to Tenants in Bankruptcy
|
(102)
|
Net Contractual
Rents
|
4,660
|
Deferrals
Agreed
|
(341)
|
Abatements
Granted
|
(410)
|
Net Billed
Rents
|
3,909
|
Collected
|
$3,520
|
Collected as percent
of Net Billed Rents
|
90%
|
Amounts are presented on a gross basis, not at the Company's
share. U.S. managed portfolio gross contractual rents do not
include any prior period deferrals or sales-based rents.
Amounts above relate to the contractual rents in the stated
periods. Abatements reduced Lease Income in the period they
were granted or agreed.
Acquisition of Taubman
Centers, Inc.
In December, the Company completed its
acquisition of an 80% ownership interest in The Taubman Realty
Group ("TRG"). Under the terms of the transaction, Simon,
through its operating partnership, Simon Property Group, L.P.,
acquired all of Taubman Centers,
Inc. ("TCO") common stock for $43.00
per share in cash, and the Taubman family sold approximately
one-third of its ownership interest at the transaction price and
remains a 20% partner in TRG.
Total consideration for the acquisition, including the
redemption of TCO's 6.5% Series J Cumulative Preferred Shares and
its 6.25% Series K Cumulative Preferred Shares, was approximately
$3.45 billion and was funded with
existing liquidity, including proceeds from Simon's issuance of
22,137,500 shares of its common stock which was completed in
November 2020.
Capital Markets and Balance Sheet Liquidity
During the
fourth quarter, the Company completed a public offering of
22,137,500 shares of its common stock. Net proceeds from the
offering were approximately $1.56
billion.
Subsequent to the end of the quarter, the Company completed a
two tranche senior notes offering totaling $1.5 billion. Combined, the two new issues
of senior notes had a weighted average term of 8.4 years and a
weighted average coupon rate of 1.96%.
As of December 31, 2020, Simon had
more than $8.2 billion of liquidity
consisting of $1.5 billion of cash on
hand, including its share of joint venture cash, and $6.7 billion of available capacity under its
revolving credit facilities, net of $623
million outstanding under its U.S. commercial paper
program.
Dividends
The Company paid its fourth quarter 2020
common stock dividend of $1.30 per
share, in cash, on January 22,
2021. Simon's Board of Directors will declare a common stock
cash dividend for the first quarter of 2021 on or before
March 31, 2021.
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 March 31, 2021 to
shareholders of record on March 17,
2021.
2021 Guidance
The Company currently estimates net
income to be within a range of $4.60
to $4.85 per diluted share and that
FFO will be within a range of $9.50
to $9.75 per diluted share for the
year ending December 31, 2021.
This guidance range assumes no further government mandated
shutdowns of the Company's domestic retail
properties.
The following table provides the reconciliation for the expected
range of estimated net income attributable to common stockholders
per diluted share to estimated FFO per diluted share:
For the year ending
December 31, 2021
|
|
|
|
|
Low
|
|
High
|
|
End
|
|
End
|
Estimated net income
attributable to common stockholders
per diluted share
|
$4.60
|
|
$4.85
|
Depreciation and
amortization including Simon's share
of unconsolidated entities
|
4.90
|
|
4.90
|
|
|
|
|
Estimated FFO per
diluted share
|
$9.50
|
|
$9.75
|
Conference Call
Simon will hold a conference call to
discuss the quarterly financial results today at 5:00 p.m. Eastern Time, Monday, February 8, 2021. 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 February 15,
2021. To access the audio replay, dial 1-855-859-2056
(international 404-537-3406) passcode 9827795.
Supplemental Materials and Website
Supplemental
information on our fourth quarter 2020 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 and portfolio Net
Operating Income growth which are financial performance measures
not defined by generally accepted accounting principles in
the United States ("GAAP").
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 Net Operating Income 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: uncertainties regarding the impact of the COVID-19
pandemic and governmental restrictions intended to prevent its
spread on our business, financial condition, results of operations,
cash flow and liquidity and our ability to access the capital
markets, satisfy our debt service obligations and make
distributions to our stockholders; changes in economic and market
conditions that may adversely affect the general retail
environment; the potential loss of anchor stores or major tenants;
the inability to collect rent due to the bankruptcy or insolvency
of tenants or otherwise; the intensely competitive market
environment in the retail industry, including e-commerce; an
increase in vacant space at our properties; the inability to lease
newly developed properties and renew leases and relet space at
existing properties on favorable terms; 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; risks associated with
the acquisition, development, redevelopment, expansion, leasing and
management of properties; general risks related to real estate
investments, including the illiquidity of real estate investments;
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;
changes in market rates of interest; the transition of LIBOR to an
alternative reference rate; our continued ability to maintain our
status as a REIT; changes in tax laws or regulations that result in
adverse tax consequences; risks relating to our joint venture
properties, including guarantees of certain joint venture
indebtedness; environmental liabilities; natural disasters; the
availability of comprehensive insurance coverage; the potential for
terrorist activities; security breaches that could compromise
our information technology or infrastructure; and the loss of key
management personnel. 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 global leader 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 Twelve
Months
|
|
Ended December
31,
|
|
Ended December
31,
|
|
2020
|
2019
|
|
2020
|
2019
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
Lease
income
|
$
1,032,795
|
$
1,356,238
|
|
$
4,302,367
|
$
5,243,771
|
Management fees and
other revenues
|
25,336
|
29,174
|
|
96,882
|
112,942
|
Other
income
|
73,298
|
103,203
|
|
208,254
|
398,476
|
Total
revenue
|
1,131,429
|
1,488,615
|
|
4,607,503
|
5,755,189
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
Property
operating
|
81,675
|
113,741
|
|
349,154
|
453,145
|
Depreciation and
amortization
|
331,851
|
324,310
|
|
1,318,008
|
1,340,503
|
Real estate
taxes
|
110,067
|
118,600
|
|
457,142
|
468,004
|
Repairs and
maintenance
|
23,376
|
26,743
|
|
80,858
|
100,495
|
Advertising and
promotion
|
37,646
|
41,216
|
|
98,613
|
150,344
|
Home and regional
office costs
|
41,249
|
45,217
|
|
171,668
|
190,109
|
General and
administrative
|
5,366
|
7,333
|
|
22,572
|
34,860
|
Other
|
38,152
|
34,579
|
|
137,679
|
109,898
|
Total operating
expenses
|
669,382
|
711,739
|
|
2,635,694
|
2,847,358
|
|
|
|
|
|
|
OPERATING INCOME
BEFORE OTHER ITEMS
|
462,047
|
776,876
|
|
1,971,809
|
2,907,831
|
|
|
|
|
|
|
Interest
expense
|
(197,855)
|
(189,813)
|
|
(784,400)
|
(789,353)
|
Loss on
extinguishment of debt
|
-
|
(116,256)
|
|
-
|
(116,256)
|
Income and other tax
benefit (expense)
|
1,572
|
(6,744)
|
|
4,637
|
(30,054)
|
Income from
unconsolidated entities
|
63,260
|
127,657
|
|
219,870
|
444,349
|
Unrealized gains
(losses) in fair value of equity instruments
|
494
|
(3,365)
|
|
(19,632)
|
(8,212)
|
(Loss) gain on sale
or disposal of, or recovery on,
|
|
|
|
|
|
assets and interests
in unconsolidated entities and impairment, net
|
(16,792)
|
2,061
|
|
(114,960)
|
14,883
|
|
|
|
|
|
|
CONSOLIDATED NET
INCOME
|
312,726
|
590,416
|
|
1,277,324
|
2,423,188
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
40,409
|
79,388
|
|
164,760
|
321,604
|
Preferred
dividends
|
834
|
834
|
|
3,337
|
3,337
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
271,483
|
$ 510,194
|
|
$
1,109,227
|
$
2,098,247
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
0.86
|
$ 1.66
|
|
$
3.59
|
$ 6.81
|
Simon Property
Group, Inc.
Unaudited Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
|
|
|
|
|
|
|
|
|
December
31,
|
December
31,
|
|
2020
|
2019
|
ASSETS:
|
|
|
Investment
properties, at cost
|
$
38,050,196
|
$
37,804,495
|
Less - accumulated
depreciation
|
14,891,937
|
13,905,776
|
|
23,158,259
|
23,898,719
|
Cash and cash
equivalents
|
1,011,613
|
669,373
|
Tenant receivables
and accrued revenue, net
|
1,236,734
|
832,151
|
Investment in
unconsolidated entities, at equity
|
2,603,571
|
2,371,053
|
Investment in
Klépierre, at equity
|
1,729,690
|
1,731,649
|
Investment in TRG, at
equity
|
3,451,897
|
-
|
Right-of-use assets,
net
|
512,914
|
514,660
|
Deferred costs and
other assets
|
1,082,168
|
1,214,025
|
Total
assets
|
$
34,786,846
|
$
31,231,630
|
|
|
|
LIABILITIES:
|
|
|
Mortgages and
unsecured indebtedness
|
$
26,723,361
|
$
24,163,230
|
Accounts payable,
accrued expenses, intangibles, and deferred revenues
|
1,311,925
|
1,390,682
|
Cash distributions
and losses in unconsolidated entities, at equity
|
1,577,393
|
1,566,294
|
Dividend
payable
|
486,922
|
-
|
Lease
liabilities
|
515,492
|
516,809
|
Other
liabilities
|
513,515
|
464,304
|
Total
liabilities
|
31,128,608
|
28,101,319
|
|
|
|
Commitments and
contingencies
|
|
|
Limited partners'
preferred interest in the Operating Partnership and
noncontrolling
|
|
|
redeemable interests
in properties
|
185,892
|
219,061
|
|
|
|
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
|
42,091
|
42,420
|
|
|
|
Common stock, $
0.0001 par value, 511,990,000 shares authorized, 342,849,037
and
|
|
|
320,435,256 issued
and outstanding, respectively
|
34
|
32
|
|
|
|
Class B common stock,
$ 0.0001 par value, 10,000 shares authorized, 8,000
|
|
|
issued and
outstanding
|
-
|
-
|
|
|
|
Capital in excess of
par value
|
11,179,688
|
9,756,073
|
Accumulated
deficit
|
(6,102,314)
|
(5,379,952)
|
Accumulated other
comprehensive loss
|
(188,675)
|
(118,604)
|
Common stock held in
treasury, at cost, 14,355,621 and 13,574,296 shares,
respectively
|
(1,891,352)
|
(1,773,571)
|
Total stockholders'
equity
|
3,039,472
|
2,526,398
|
Noncontrolling
interests
|
432,874
|
384,852
|
Total
equity
|
3,472,346
|
2,911,250
|
Total liabilities
and equity
|
$
34,786,846
|
$
31,231,630
|
Simon Property
Group, Inc.
|
Unaudited Joint
Venture Combined Statements of Operations
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
December 31,
|
|
For the Twelve
Months Ended
December 31,
|
|
2020
|
2019
|
|
2020
|
2019
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
Lease
income
|
$
624,516
|
$ 802,746
|
|
$
2,544,134
|
$
3,088,594
|
Other
income
|
85,284
|
88,060
|
|
300,634
|
322,398
|
Total
revenue
|
709,800
|
890,806
|
|
2,844,768
|
3,410,992
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
Property
operating
|
136,616
|
152,320
|
|
519,979
|
587,062
|
Depreciation and
amortization
|
179,719
|
169,693
|
|
692,424
|
681,764
|
Real estate
taxes
|
64,864
|
65,314
|
|
262,351
|
266,013
|
Repairs and
maintenance
|
19,061
|
23,491
|
|
68,722
|
85,430
|
Advertising and
promotion
|
24,764
|
25,808
|
|
67,434
|
89,660
|
Other
|
55,888
|
53,374
|
|
163,710
|
196,178
|
Total operating
expenses
|
480,912
|
490,000
|
|
1,774,620
|
1,906,107
|
|
|
|
|
|
|
OPERATING INCOME
BEFORE OTHER ITEMS
|
228,888
|
400,806
|
|
1,070,148
|
1,504,885
|
|
|
|
|
|
|
Interest
expense
|
(152,703)
|
(163,074)
|
|
(616,332)
|
(636,988)
|
Gain on sale or
disposal of, or recovery on, assets and interests in unconsolidated
entities, net
|
-
|
3,022
|
|
-
|
24,609
|
|
|
|
|
|
|
NET
INCOME
|
$
76,185
|
$ 240,754
|
|
$
453,816
|
$ 892,506
|
|
|
|
|
|
|
Third-Party
Investors' Share of Net Income
|
$
32,731
|
$ 128,618
|
|
$
226,364
|
$ 460,696
|
|
|
|
|
|
|
Our Share of Net
Income
|
43,454
|
112,136
|
|
227,452
|
431,810
|
Amortization of
Excess Investment (A)
|
(19,953)
|
(21,143)
|
|
(82,097)
|
(83,556)
|
Our Share of Gain
on Sale or Disposal of Assets and Interests in
|
|
|
|
|
|
Other Income in
the Consolidated Financial Statements
|
-
|
-
|
|
-
|
(9,156)
|
Our Share of Gain
on Sale or Disposal of, or Recovery on, Assets and Interests
in
|
|
|
|
|
|
Unconsolidated
Entities, net
|
-
|
(1,133)
|
|
-
|
(1,133)
|
|
|
|
|
|
|
Income from
Unconsolidated Entities (B)
|
$
23,501
|
$ 89,860
|
|
$
145,355
|
$ 337,965
|
|
|
|
|
|
|
Note: The above
financial presentation does not include any information related to
our investments in Klépierre S.A.
|
("Klépierre") and The Taubman Realty Group ("TRG"). For additional
information, see footnote B.
|
Simon Property
Group, Inc
|
Unaudited Joint
Venture Combined Balance Sheets
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
December
31,
|
|
|
2020
|
2019
|
|
Assets:
|
|
|
|
Investment
properties, at cost
|
$
20,079,476
|
$
19,525,665
|
|
Less - accumulated
depreciation
|
8,003,863
|
7,407,627
|
|
|
12,075,613
|
12,118,038
|
|
Cash and cash
equivalents
|
1,169,422
|
1,015,864
|
|
Tenant receivables
and accrued revenue, net
|
749,231
|
510,157
|
|
Right-of-use assets,
net
|
185,598
|
185,302
|
|
Deferred costs and
other assets
|
380,087
|
384,663
|
|
Total
assets
|
$
14,559,951
|
$
14,214,024
|
|
|
|
|
|
Liabilities and
Partners' Deficit:
|
|
|
|
Mortgages
|
$
15,569,485
|
$
15,391,781
|
|
Accounts payable,
accrued expenses, intangibles, and deferred revenue
|
969,242
|
977,112
|
|
Lease
liabilities
|
188,863
|
186,594
|
|
Other
liabilities
|
426,321
|
338,412
|
|
Total
liabilities
|
17,153,911
|
16,893,899
|
|
|
|
|
|
Preferred
units
|
67,450
|
67,450
|
|
Partners'
deficit
|
(2,661,410)
|
(2,747,325)
|
|
Total liabilities and
partners' deficit
|
$
14,559,951
|
$
14,214,024
|
|
|
|
|
|
Our Share
of:
|
|
|
|
Partners'
deficit
|
$
(1,130,713)
|
$
(1,196,926)
|
|
Add: Excess
Investment (A)
|
1,399,757
|
1,525,903
|
|
Our net Investment in
unconsolidated entities, at equity
|
$
269,044
|
$ 328,977
|
|
|
Note: The above
financial presentation does not include any information related to
our investments in Klépierre and TRG.
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Income (D)
|
|
$
312,726
|
|
$
590,416
|
|
$
1,277,324
|
|
$
2,423,188
|
Adjustments to
Arrive at FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from consolidated
|
|
|
|
|
|
|
|
|
properties
|
|
|
329,422
|
|
321,404
|
|
1,308,419
|
|
1,329,843
|
|
Our share of
depreciation and amortization from
|
|
|
|
|
|
|
|
|
unconsolidated entities,
including Klépierre
|
133,645
|
|
139,579
|
|
536,133
|
|
551,596
|
|
Loss (gain) on sale
or disposal of, or recovery on,
|
|
|
|
|
|
|
|
|
assets and interests
in unconsolidated entities and impairment, net
|
16,792
|
|
(2,061)
|
|
114,960
|
|
(14,883)
|
|
Unrealized (gains)
losses in fair value of equity instruments
|
(494)
|
|
3,365
|
|
19,632
|
|
8,212
|
|
Net (gain) loss
attributable to noncontrolling interest holders in
|
|
|
|
|
|
|
|
|
properties
|
|
|
(173)
|
|
(1,172)
|
|
4,378
|
|
(991)
|
|
Noncontrolling
interests portion of depreciation and amortization and loss (gain)
on disposal of properties
|
(3,966)
|
|
(4,834)
|
|
(18,631)
|
|
(19,442)
|
|
Preferred
distributions and dividends
|
(1,313)
|
|
(1,313)
|
|
(5,252)
|
|
(5,252)
|
FFO of the
Operating Partnership
|
$
786,639
|
|
$
1,045,384
|
|
$
3,236,963
|
|
$
4,272,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share to diluted FFO per share reconciliation:
|
|
|
|
|
|
|
|
Diluted net income
per share
|
|
$
0.86
|
|
$
1.66
|
|
$
3.59
|
|
$
6.81
|
|
Depreciation and
amortization from consolidated properties
|
|
|
|
|
|
|
|
|
and our share of
depreciation and amortization from unconsolidated
|
|
|
|
|
|
|
|
|
entities, including
Klépierre, net of noncontrolling interests
|
|
|
|
|
|
|
|
|
portion of depreciation and
amortization
|
1.27
|
|
1.30
|
|
5.14
|
|
5.25
|
|
Loss (gain) on sale
or disposal of, or recovery on,
|
|
|
|
|
|
|
|
|
assets and interests
in unconsolidated entities and impairment, net
|
0.05
|
|
(0.01)
|
|
0.32
|
|
(0.04)
|
|
Unrealized (gains)
losses in fair value of equity instruments
|
(0.01)
|
|
0.01
|
|
0.06
|
|
0.02
|
Diluted FFO per
share
|
|
$
2.17
|
|
$
2.96
|
|
$
9.11
|
|
$
12.04
|
|
|
|
|
|
|
|
|
|
|
|
|
Details for per share
calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO of the Operating
Partnership
|
|
$
786,639
|
|
$
1,045,384
|
|
$
3,236,963
|
|
$
4,272,271
|
Diluted FFO allocable
to unitholders
|
(100,472)
|
|
(138,219)
|
|
(424,063)
|
|
(563,342)
|
Diluted FFO allocable
to common stockholders
|
$
686,167
|
|
$
907,165
|
|
$
2,812,900
|
|
$
3,708,929
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares outstanding
|
316,595
|
|
306,869
|
|
308,738
|
|
307,950
|
Weighted average
limited partnership units outstanding
|
46,455
|
|
46,751
|
|
46,544
|
|
46,774
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares and units outstanding
|
363,050
|
|
353,620
|
|
355,282
|
|
354,724
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted FFO
per Share
|
|
$
2.17
|
|
$
2.96
|
|
$
9.11
|
|
$
12.04
|
Percent Change
|
|
|
-26.7%
|
|
|
|
-24.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and TRG.
Amounts included in Footnote D below exclude our share of related
activity for our investments in Klépierre and TRG. 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 and 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 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
(Losses) gains on
land sales of ($0.1) million and $3.2 million for the three months
ended December 31, 2020 and 2019, respectively, and $8.0 million
and $17.3 million for the twelve months ended December 31, 2020 and
2019, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Straight-line
adjustments (decreased) increased income by ($19.6) million and
$24.9 million for the three months ended December 31, 2020 and
2019, respectively, and ($23.9) million and $90.9 million for the
twelve months ended December 31, 2020 and 2019,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Amortization of fair
market value of leases from acquisitions increased income by $1.7
million and $1.4 million for the three months ended December 31,
2020 and 2019, respectively, and $5.2 million and $5.4 million for
the twelve months ended December 31, 2020 and 2019,
respectively.
|
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SOURCE Simon