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Simon Property Group, Inc. (NYSE: SPG) is a global leader in retail real estate ownership, management, and development. As an S&P 100 company, Simon Property Group boasts an extensive portfolio that spans across North America, Europe, and Asia, providing premier shopping, dining, entertainment, and mixed-use destinations. With a formidable market capitalization exceeding $80 billion, Simon Property Group is well-positioned as the second-largest real estate investment trust in the United States.
The company's portfolio includes investments in 230 properties, comprising 136 traditional malls, 69 premium outlets, 14 Mills centers, 6 lifestyle centers, and 5 other retail properties. Their strategic investment also includes a 21% interest in Klépierre, a European retail company with shopping centers in 16 countries, and joint-venture interests in 33 premium outlets across 11 countries. Simon's properties generate billions in annual sales and provide community gathering places for millions of people every day.
Simon Property Group is renowned for its strong balance sheet, long-tenured and well-respected senior management team, and innovative spirit. This reputation is backed by over 50 years of successful retail real estate development, management, and leasing. Recent achievements include receiving a four-star rating from the Global Real Estate Sustainability Benchmark (GRESB) for its sustainability practices and the commencement of construction on the Jakarta Premium Outlets® in Indonesia, which is set to open in February 2025.
Financially, the company continues to demonstrate strong performance with robust liquidity. As of September 30, 2023, the company had approximately $8.8 billion of liquidity, including $1.4 billion in cash and $7.4 billion in available capacity under its revolving credit facilities. The company also completed eleven non-recourse mortgage loans totaling approximately $962 million, with Simon's share being $540 million, at a weighted average interest rate of 6.03%.
Simon's strategic initiatives are aimed at growth and sustainability. During the first nine months of 2023, the company repurchased 1,267,995 shares of its common stock and declared a quarterly common stock dividend of $1.90 for the fourth quarter of 2023, representing a 5.6% year-over-year increase. Moreover, the company has provided optimistic guidance for 2023, with expected net income per diluted share ranging from $6.67 to $6.77 and Funds From Operations (FFO) per diluted share ranging from $12.15 to $12.25.
With a commitment to sustainability, continuous development, and robust financial health, Simon Property Group remains a pinnacle of real estate investment, delivering significant value to investors and maintaining its leadership in the industry.
Simon announced its achievement of the WELL Health-Safety Rating for Facility Operations and Management for over 200 properties in its portfolio. This milestone positions Simon as a leader in the retail sector, highlighting the company's commitment to enhancing health and safety in response to COVID-19 challenges. The rating underscores Simon's efforts to improve operational standards, fostering a safer environment for both employees and customers.
On January 11, 2021, Simon announced that its subsidiary, Simon Property Group, L.P., will sell $1.5 billion in senior notes, comprising $800 million of 1.750% notes due 2028 and $700 million of 2.200% notes due 2031. The weighted average term is 8.4 years with a 1.96% coupon rate. Proceeds will fund the redemption of $550 million in 2.500% notes due July 2021 and pay down debt. The offering is expected to close on January 21, 2021.
Simon Property Group (NYSE: SPG) has successfully acquired an 80% ownership stake in Taubman Realty Group Limited Partnership for approximately $3.4 billion, which includes the redemption of common and preferred shares of Taubman Centers, Inc. (TCO) at $43.00 per share. The Taubman family retains a 20% interest in TRG. This acquisition aims to enhance TRG's retail operations and job creation in the communities it serves. The transaction was funded using Simon's existing liquidity and equity offering proceeds.
Simon collaborates with Mango to expand its U.S. presence by opening three new stores in Q1 2021 at key locations: Roosevelt Field, Menlo Park Mall, and Dadeland Mall. This strategic move aims to enhance Mango's brand recognition among American consumers, supported by a consistent presence since 2006. Daniel López, Mango's Director of Expansion, emphasizes the importance of physical stores in their growth strategy, while Simon's Zachary Beloff highlights the brand's potential in the U.S. retail market.
Simon has announced a common stock dividend of $1.30 per share for the fourth quarter of 2020, payable on January 22, 2021. Shareholders on record by December 24, 2020 will receive this cash dividend. The company acknowledges potential risks from the COVID-19 pandemic affecting tenant businesses, rental income, and overall financial conditions, which could impact future dividend distributions. Simon Property Group operates as a real estate investment trust owning premier shopping and entertainment destinations.
Simon Property Group (NYSE: SPG) has completed its public offering of 22,137,500 shares, raising approximately $1.56 billion in net proceeds. The offering included an upsized base of 19,250,000 shares, plus an additional 2,887,500 shares from underwriters' overallotment. The funds will primarily support the acquisition of an 80% stake in Taubman Realty Group and for general business purposes, including debt repayment and capital expenditures. The offering was managed by several prominent financial institutions, including BofA Securities and Citigroup.
On November 18, 2020, Simon Property Group, NYSE: SPG, announced an upsized public offering of 19,250,000 shares of common stock at $72.50 per share, expected to close on November 23, 2020. The offering aims to generate net proceeds of approximately $1.35 billion, which will help fund the acquisition of an 80% stake in Taubman Realty Group and support general business purposes. The company has granted underwriters an overallotment option for an additional 2,887,500 shares.
On November 18, 2020, Simon Property Group (NYSE: SPG) announced an offering of 17,500,000 shares of common stock, with an option for underwriters to purchase an additional 2,625,000 shares. The proceeds will fund an 80% acquisition of Taubman Realty Group and for other general business needs including debt repayment. The offering is structured under an effective shelf registration and will be managed by BofA Securities and Citigroup. Investors are advised that the offering is subject to market risks and potential dilution implications for existing shareholders.
Narvar and Simon announced a collaboration to enhance retail returns through a convenient drop-off service at Simon properties. This initiative allows customers to return items from about two dozen brands at nearly 80,000 locations, significantly easing the returns process. Research indicates that convenience drives consumer behavior, with 30-40% of shoppers valuing location and hours for returns. The partnership addresses friction points for consumers, potentially boosting loyalty and increasing foot traffic to Simon's retail locations.
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