INDIANAPOLIS, Aug. 5, 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 June 30,
2024.
"We are pleased with our financial and operational performance
in the second quarter," said David
Simon, Chairman, Chief Executive Officer and
President. "We continue to invest in our retail real estate
platforms with transformative redevelopments, including the
addition of mixed-use components, and selective new developments
including the grand opening of Tulsa Premium Outlets on
August 15, 2024 at 100% leased.
Today, we once again raised our quarterly dividend and are
increasing the mid-point of our full-year 2024 guidance."
Results for the Quarter
- Net income attributable to common stockholders was $493.5 million, or $1.51 per diluted share, as compared to
$486.3 million, or $1.49 per diluted share in 2023.
- Net income for the three months of 2023 included after-tax net
gains of $32.9 million, or
$0.09 per diluted share from
investment activity.
- Funds From Operations ("FFO") was $1.088
billion, or $2.90 per diluted
share as compared to $1.077 billion,
or $2.88 per diluted share in the
prior year, inclusive of the $0.09
per diluted share in net gains from investment activity.
- Real Estate FFO was $2.93 per
diluted share as compared to $2.81
per diluted share in the prior year, an increase of 4.3%
year-over-year.
- Domestic property Net Operating Income ("NOI") increased 5.2%
and portfolio NOI increased 4.8% compared to the prior year
period.
Results for the Six Months
- Net income attributable to common stockholders was $1.225 billion, or $3.76 per diluted share, as compared to
$938.2 million, or $2.87 per diluted share in 2023.
- Net income for the six months of 2024 includes after-tax net
gains of $306.3 million, or
$0.82 per diluted share, primarily
resulting from the sale of the Company's remaining ownership
interest in Authentic Brands Group in the first quarter; prior year
included non-cash after-tax gains of $53.6
million or $0.14 per diluted
share from investment activity.
- FFO was $2.421 billion, or
$6.46 per diluted share as compared
to $2.103 billion, or $5.62 per diluted share in the prior year,
inclusive of the gains referenced above.
- Real Estate FFO was $5.84 per
diluted share as compared to $5.64
per diluted share in the prior year, an increase of 3.5%
year-over-year.
- Domestic property NOI increased 4.5% and portfolio NOI
increased 4.4% compared to the prior year period.
U.S. Malls and Premium Outlets Operating Statistics
- Occupancy at June 30, 2024 was
95.6%, a 0.9% increase compared to 94.7% at June 30, 2023.
- Base minimum rent per square foot was $57.94 at June 30,
2024, compared to $56.27 at
June 30, 2023, an increase of
3.0%.
- Reported retailer sales per square foot was $741 for the trailing 12 months ended
June 30, 2024.
Development Activity
On August
15th, Tulsa Premium Outlets (Jenks, Oklahoma) will open with 338,000 square
feet featuring a dynamic mix of merchandise, amenities and
experiences. Simon owns 100% of this center.
During the second quarter, construction started on a new,
234-unit luxury residential development at Northgate Station
(Seattle, Washington).
Capital Markets and Balance Sheet Liquidity
During the
first six months, the Company completed 10 non-recourse mortgage
loans totaling approximately $1.1
billion (U.S. dollar equivalent), of which Simon's share was
$544 million. The weighted
average interest rate on these loans was 6.36%.
As of June 30, 2024, Simon had
approximately $11.2 billion of
liquidity consisting of $3.1 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 $2.05 for the third quarter of 2024. This
is an increase of $0.15, or 7.9%
year-over-year. The dividend will be payable on September 30, 2024 to shareholders of record on
September 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 September 30, 2024 to
shareholders of record on September
16, 2024.
2024 Guidance
The Company currently estimates net
income to be within a range of $7.37
to $7.47 per diluted share and FFO to
be within a range of $12.80 to
$12.90 per diluted share 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
|
$7.37
|
$7.47
|
|
Depreciation and
amortization including Simon's share
|
|
|
|
of unconsolidated
entities
|
5.45
|
5.45
|
|
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
|
$12.80
|
$12.90
|
Conference Call
Simon will hold a conference call to
discuss the quarterly financial results today from 5:00 p.m. to 6:00 p.m. Eastern Time, Monday, August 5, 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 August 12,
2024. To access the audio replay, dial 1-844-512-2921
(international +1-412-317-6671) passcode 13747531.
Supplemental Materials and Website
Supplemental
information on our second 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 per
share and portfolio NOI 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 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 Six Months
|
|
|
|
Ended June 30,
|
|
Ended June 30,
|
|
|
|
2024
|
2023
|
|
2024
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
Lease
income
|
$
1,315,740
|
$ 1,254,958
|
|
$
2,618,412
|
$ 2,503,143
|
|
|
|
Management fees and
other revenues
|
33,186
|
33,507
|
|
62,642
|
62,457
|
|
|
|
Other
income
|
109,340
|
81,136
|
|
219,802
|
154,850
|
|
|
|
Total revenue
|
1,458,266
|
1,369,601
|
|
2,900,856
|
2,720,450
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
Property
operating
|
131,292
|
118,263
|
|
257,406
|
230,012
|
|
|
|
Depreciation and
amortization
|
310,016
|
319,534
|
|
617,384
|
626,592
|
|
|
|
Real estate
taxes
|
96,640
|
111,837
|
|
205,849
|
222,996
|
|
|
|
Repairs and
maintenance
|
24,524
|
23,002
|
|
50,253
|
45,176
|
|
|
|
Advertising and
promotion
|
38,828
|
33,745
|
|
66,909
|
57,904
|
|
|
|
Home and regional
office costs
|
50,481
|
50,006
|
|
111,204
|
106,826
|
|
|
|
General and
administrative
|
10,839
|
10,058
|
|
19,970
|
19,164
|
|
|
|
Other
|
41,545
|
45,231
|
|
82,600
|
91,132
|
|
|
|
Total operating expenses
|
704,165
|
711,676
|
|
1,411,575
|
1,399,802
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME BEFORE OTHER
ITEMS
|
754,101
|
657,925
|
|
1,489,281
|
1,320,648
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(221,338)
|
(218,086)
|
|
(451,960)
|
(417,515)
|
|
|
|
Gain on disposal,
exchange, or revaluation of equity interests, net
|
-
|
36,437
|
|
414,769
|
36,437
|
|
|
|
Income and other tax
(expense) benefit
|
(4,961)
|
(10,487)
|
|
(52,564)
|
2,966
|
|
|
|
Income from
unconsolidated entities
|
42,214
|
90,455
|
|
7,872
|
112,355
|
|
|
|
Unrealized gains
(losses) in fair value of publicly traded equity instruments
and
|
|
|
|
|
|
|
|
|
derivative instrument,
net
|
2,405
|
5,617
|
|
(4,787)
|
26,225
|
|
|
|
(Loss) gain on
acquisition of controlling interest, sale or disposal of, or
recovery on,
|
|
|
|
|
|
|
|
|
assets and interests
in unconsolidated entities and impairment, net
|
(2,986)
|
(4,356)
|
|
7,980
|
(4,356)
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED NET INCOME
|
569,435
|
557,505
|
|
1,410,591
|
1,076,760
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to noncontrolling interests
|
75,136
|
70,328
|
|
183,755
|
136,921
|
|
|
|
Preferred
dividends
|
834
|
834
|
|
1,669
|
1,669
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO COMMON
STOCKHOLDERS
|
$
493,465
|
$ 486,343
|
|
$
1,225,167
|
$ 938,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Net income attributable to common
stockholders
|
$
1.51
|
$ 1.49
|
|
$
3.76
|
$ 2.87
|
|
|
|
|
|
|
|
|
|
|
|
Simon Property
Group, Inc.
Unaudited Consolidated Balance
Sheets
(Dollars in thousands, except share
amounts)
|
|
|
|
|
|
|
|
|
June 30,
|
December
31,
|
|
|
|
2024
|
2023
|
|
|
|
ASSETS:
|
|
|
|
|
|
Investment properties,
at cost
|
$
39,664,271
|
$ 39,285,138
|
|
|
|
Less - accumulated
depreciation
|
18,298,345
|
17,716,788
|
|
|
|
21,365,926
|
21,568,350
|
|
|
|
Cash and cash
equivalents
|
1,234,433
|
1,168,991
|
|
|
|
Short-term
investments
|
1,300,000
|
1,000,000
|
|
|
|
Tenant receivables and
accrued revenue, net
|
793,107
|
826,126
|
|
|
|
Investment in TRG, at
equity
|
2,930,647
|
3,049,719
|
|
|
|
Investment in
Klépierre, at equity
|
1,450,789
|
1,527,872
|
|
|
|
Investment in other
unconsolidated entities, at equity
|
2,649,551
|
3,540,648
|
|
|
|
Right-of-use assets,
net
|
523,232
|
484,073
|
|
|
|
Deferred costs and
other assets
|
1,129,286
|
1,117,716
|
|
|
|
Total assets
|
$
33,376,971
|
$ 34,283,495
|
|
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
|
Mortgages and
unsecured indebtedness
|
$
25,287,745
|
$ 26,033,423
|
|
|
|
Accounts payable,
accrued expenses, intangibles, and deferred revenues
|
1,627,309
|
1,693,248
|
|
|
|
Cash distributions and
losses in unconsolidated entities, at equity
|
1,729,001
|
1,760,922
|
|
|
|
Dividend
payable
|
1,737
|
1,842
|
|
|
|
Lease
liabilities
|
523,966
|
484,861
|
|
|
|
Other
liabilities
|
620,500
|
621,601
|
|
|
|
Total liabilities
|
29,790,258
|
30,595,897
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
Limited partners'
preferred interest in the Operating Partnership and
noncontrolling
|
|
|
|
|
|
redeemable
interests
|
188,699
|
195,949
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
Capital stock (total
shares authorized, $0.0001 par value, 238,000,000
|
|
|
|
|
|
shares of excess
common stock, 850,000,000 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
|
40,942
|
41,106
|
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value, 511,990,000 shares authorized, 342,890,839
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
|
11,362,588
|
11,406,236
|
|
|
|
Accumulated
deficit
|
(6,155,936)
|
(6,095,576)
|
|
|
|
Accumulated other
comprehensive loss
|
(166,904)
|
(172,787)
|
|
|
|
Common stock held in
treasury, at cost, 16,855,456 and 16,983,364 shares,
respectively
|
(2,136,137)
|
(2,156,178)
|
|
|
|
Total stockholders'
equity
|
2,944,586
|
3,022,834
|
|
|
|
Noncontrolling
interests
|
453,428
|
468,815
|
|
|
|
Total equity
|
3,398,014
|
3,491,649
|
|
|
|
Total liabilities and equity
|
$
33,376,971
|
$ 34,283,495
|
|
|
|
|
|
|
|
|
Simon Property Group, Inc.
|
|
Unaudited Joint Venture Combined Statements of
Operations
|
|
(Dollars in thousands)
|
|
|
|
For the Three Months
Ended June 30,
|
|
For the Six Months
Ended June 30,
|
|
2024
|
2023
|
|
2024
|
2023
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
Lease
income
|
$
741,887
|
$ 733,761
|
|
$
1,493,917
|
$ 1,468,809
|
|
Other
income
|
94,773
|
138,193
|
|
185,764
|
228,239
|
|
Total
revenue
|
836,660
|
871,954
|
|
1,679,681
|
1,697,048
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
Property
operating
|
162,138
|
155,036
|
|
323,183
|
309,958
|
|
Depreciation and
amortization
|
158,107
|
159,329
|
|
317,921
|
323,802
|
|
Real estate
taxes
|
61,104
|
64,939
|
|
124,284
|
128,943
|
|
Repairs and
maintenance
|
18,142
|
17,643
|
|
37,634
|
36,418
|
|
Advertising and
promotion
|
21,532
|
18,804
|
|
43,195
|
39,514
|
|
Other
|
53,630
|
63,208
|
|
108,510
|
116,516
|
|
Total operating
expenses
|
474,653
|
478,959
|
|
954,727
|
955,151
|
|
|
|
|
|
|
|
OPERATING INCOME BEFORE OTHER
ITEMS
|
362,007
|
392,995
|
|
724,954
|
741,897
|
|
|
|
|
|
|
|
Interest
expense
|
(179,359)
|
(167,498)
|
|
(356,110)
|
(335,706)
|
|
Gain on sale or
disposal of, or recovery on, assets and interests in unconsolidated
entities, net
|
-
|
1,134
|
|
-
|
1,134
|
|
|
|
|
|
|
|
NET INCOME
|
$
182,648
|
$ 226,631
|
|
$
368,844
|
$ 407,325
|
|
|
|
|
|
|
|
Third-Party Investors' Share of Net
Income
|
$
92,849
|
$ 114,808
|
|
$
187,219
|
$ 205,067
|
|
|
|
|
|
|
|
Our Share of Net Income
|
89,799
|
111,823
|
|
181,625
|
202,258
|
|
Amortization of Excess Investment
(A)
|
(14,463)
|
(14,928)
|
|
(29,160)
|
(29,848)
|
|
Our Share of Gain on Sale or Disposal of, or Recovery
on, Assets and
Interests in Unconsolidated Entities, net
|
|
|
|
|
|
|
-
|
(454)
|
|
-
|
(454)
|
|
|
|
|
|
|
|
Income from Unconsolidated Entities
(B)
|
$
75,336
|
$ 96,441
|
|
$
152,465
|
$ 171,956
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
June 30,
|
December 31,
|
|
|
2024
|
2023
|
|
|
Assets:
|
|
|
|
|
Investment properties,
at cost
|
$
19,140,474
|
$ 19,315,578
|
|
|
Less - accumulated
depreciation
|
8,955,109
|
8,874,745
|
|
|
10,185,365
|
10,440,833
|
|
|
Cash and cash
equivalents
|
1,196,158
|
1,372,377
|
|
|
Tenant receivables and
accrued revenue, net
|
450,435
|
505,933
|
|
|
Right-of-use assets,
net
|
110,547
|
126,539
|
|
|
Deferred costs and
other assets
|
570,976
|
537,943
|
|
|
Total
assets
|
$
12,513,481
|
$ 12,983,625
|
|
|
|
|
|
|
Liabilities and Partners'
Deficit:
|
|
|
|
|
Mortgages
|
$
14,006,373
|
$ 14,282,839
|
|
|
Accounts payable,
accrued expenses, intangibles, and deferred revenue
|
867,192
|
1,032,217
|
|
|
Lease
liabilities
|
101,039
|
116,535
|
|
|
Other
liabilities
|
369,833
|
368,582
|
|
|
Total
liabilities
|
15,344,437
|
15,800,173
|
|
|
|
|
|
|
Preferred
units
|
67,450
|
67,450
|
|
|
Partners'
deficit
|
(2,898,406)
|
(2,883,998)
|
|
|
Total liabilities and
partners' deficit
|
$
12,513,481
|
$ 12,983,625
|
|
|
|
|
|
|
Our Share of:
|
|
|
|
|
Partners'
deficit
|
$
(1,218,503)
|
$
(1,258,809)
|
|
|
Add: Excess Investment
(A)
|
1,118,300
|
1,173,852
|
|
|
Our net Investment in
unconsolidated entities, at equity
|
$
(100,203)
|
$ (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
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net Income (D)
|
$
569,435
|
|
$
557,505
|
|
$
1,410,591
|
|
$ 1,076,760
|
|
Adjustments to Arrive at FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from consolidated
|
|
|
|
|
|
|
|
|
properties
|
306,318
|
|
316,382
|
|
609,990
|
|
620,615
|
|
Our share of
depreciation and amortization from
|
|
|
|
|
|
|
|
|
unconsolidated entities,
including Klépierre, TRG and other corporate investments
|
216,257
|
|
205,321
|
|
421,235
|
|
414,651
|
|
Loss (gain) on
acquisition of controlling interest, sale or disposal of, or
recovery on,
|
|
|
|
|
|
|
|
|
assets and interests
in unconsolidated entities and impairment, net
|
2,986
|
|
4,356
|
|
(7,980)
|
|
4,356
|
|
Net (income) loss
attributable to noncontrolling interest holders in
|
|
|
|
|
|
|
|
|
properties
|
(785)
|
|
364
|
|
685
|
|
(398)
|
|
Noncontrolling
interests portion of depreciation and amortization, gain on
consolidation of properties,
|
|
|
|
|
|
|
|
|
and loss (gain) on
disposal of properties
|
(5,087)
|
|
(5,435)
|
|
(10,598)
|
|
(10,209)
|
|
Preferred distributions
and dividends
|
(1,266)
|
|
(1,313)
|
|
(2,532)
|
|
(2,626)
|
|
FFO of the Operating
Partnership
|
$
1,087,858
|
|
$
1,077,180
|
|
$
2,421,391
|
|
$ 2,103,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share to diluted FFO per share
reconciliation:
|
|
|
|
|
|
|
|
|
Diluted net income per share
|
$
1.51
|
|
$
1.49
|
|
$
3.76
|
|
$
2.87
|
|
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
|
1.38
|
|
1.38
|
|
2.72
|
|
2.74
|
|
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)
|
|
0.01
|
|
Diluted FFO per share
|
$
2.90
|
|
$
2.88
|
|
$
6.46
|
|
$
5.62
|
|
Gain on disposal,
exchange, or revaluation of equity interests, net of tax
|
-
|
|
(0.07)
|
|
(0.83)
|
|
(0.07)
|
|
Losses from other
platform investments, net of tax
|
0.04
|
|
0.02
|
|
0.20
|
|
0.16
|
|
Unrealized (gains)
losses in fair value of publicly traded equity instruments and
derivative instrument, net
|
(0.01)
|
|
(0.02)
|
|
0.01
|
|
(0.07)
|
|
Real Estate FFO per share
|
$
2.93
|
|
$
2.81
|
|
$
5.84
|
|
$
5.64
|
|
|
|
|
|
|
|
|
|
|
Details for per share
calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO of the Operating
Partnership
|
$
1,087,858
|
|
$
1,077,180
|
|
$
2,421,391
|
|
$ 2,103,149
|
|
Diluted FFO allocable
to unitholders
|
(141,733)
|
|
(135,890)
|
|
(315,537)
|
|
(265,536)
|
|
Diluted FFO allocable
to common stockholders
|
$
946,125
|
|
$
941,290
|
|
$
2,105,854
|
|
$ 1,837,613
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares outstanding
|
326,039
|
|
327,190
|
|
325,975
|
|
327,073
|
|
Weighted average
limited partnership units outstanding
|
48,844
|
|
47,233
|
|
48,843
|
|
47,262
|
|
Basic and Diluted
weighted average shares and units outstanding
|
374,883
|
|
374,423
|
|
374,818
|
|
374,335
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted FFO
per Share
|
$
2.90
|
|
$
2.88
|
|
$
6.46
|
|
$
5.62
|
|
Percent
Change
|
0.7 %
|
|
|
|
14.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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
$0.0 million and $0.1 million for the three months ended June 30,
2024 and 2023, respectively, and $7.5 million and $4.6 million for
the six months ended June 30, 2024 and 2023,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Straight-line
adjustments decreased income by ($4.2) million and ($4.1) million
for the three months ended June 30, 2024 and 2023, respectively,
and ($8.8) million and ($11.8) million for the six months ended
June 30, 2024 and 2023, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Amortization of fair
market value of leases increased income by $0.1 million and $0.1
million for the three months ended June 30, 2024 and 2023,
respectively, and $0.3 million and $0.2 million for the six months
ended June 30, 2024 and 2023, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Simon