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Simon® Reports Third Quarter 2024 Results, Affirms Full Year 2024 Guidance and Raises Quarterly Dividend

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Simon reported strong Q3 2024 results with net income of $475.2 million ($1.46 per diluted share). Real Estate FFO reached $1.144 billion ($3.05 per diluted share), up 4.8% year-over-year. Domestic property NOI increased 5.4%, while portfolio NOI grew 5.0%. Occupancy improved to 96.2%, and base minimum rent per square foot rose 2.3% to $57.71. The company successfully opened Tulsa Premium Outlets and expanded Busan Premium Outlets. The quarterly dividend was raised 10.5% to $2.10 per share. Simon maintains its 2024 guidance with FFO expected between $12.80 and $12.90 per diluted share.

Simon ha riportato risultati solidi per il terzo trimestre del 2024, con un reddito netto di 475,2 milioni di dollari (1,46 dollari per azione diluita). Il FFO Immobiliare ha raggiunto 1,144 miliardi di dollari (3,05 dollari per azione diluita), con un aumento del 4,8% rispetto all'anno precedente. L'NOI delle proprietà nazionali è aumentato del 5,4%, mentre l'NOI del portafoglio è cresciuto del 5,0%. L'occupazione è migliorata al 96,2% e l'affitto minimo base per piede quadrato è aumentato del 2,3%, raggiungendo i 57,71 dollari. L'azienda ha aperto con successo i Tulsa Premium Outlets e ha ampliato i Busan Premium Outlets. Il dividendo trimestrale è stato aumentato del 10,5% a 2,10 dollari per azione. Simon mantiene le sue previsioni per il 2024, con un FFO previsto tra 12,80 e 12,90 dollari per azione diluita.

Simon reportó resultados sólidos para el tercer trimestre de 2024, con un ingreso neto de 475.2 millones de dólares (1.46 dólares por acción diluida). El FFO Inmobiliario alcanzó 1.144 millones de dólares (3.05 dólares por acción diluida), un incremento del 4.8% en comparación con el año anterior. El NOI de las propiedades nacionales aumentó un 5.4%, mientras que el NOI del portafolio creció un 5.0%. La ocupación mejoró al 96.2% y el alquiler mínimo base por pie cuadrado subió un 2.3% a 57.71 dólares. La empresa abrió con éxito los Tulsa Premium Outlets y expandió los Busan Premium Outlets. El dividendo trimestral se incrementó un 10.5% a 2.10 dólares por acción. Simon mantiene su guía para 2024, con un FFO esperado entre 12.80 y 12.90 dólares por acción diluida.

사이먼은 2024년 3분기에 4억 7,520만 달러(희석 주당 1.46달러)의 순이익을 보고하며 강력한 실적을 발표했습니다. 부동산 FFO는 11억 4,400만 달러(희석 주당 3.05달러)에 도달했으며, 이는 전년 대비 4.8% 증가한 수치입니다. 국내 부동산의 NOI는 5.4% 증가했으며, 포트폴리오 NOI는 5.0% 성장했습니다. 점유율은 96.2%로 개선되었고, 평방피트당 최소 기본 임대료는 2.3% 증가하여 57.71달러에 달했습니다. 회사는 성공적으로 톨사 프리미엄 아울렛을 개장하고 부산 프리미엄 아울렛을 확장했습니다. 분기 배당금은 10.5% 인상되어 주당 2.10달러가 되었습니다. 사이먼은 2024년 가이던스를 유지하며 FFO는 희석 주당 12.80달러에서 12.90달러 사이로 예상되고 있습니다.

Simon a rapporté des résultats solides pour le troisième trimestre de 2024, avec un revenu net de 475,2 millions de dollars (1,46 dollar par action diluée). Le FFO Immobilier a atteint 1,144 milliard de dollars (3,05 dollars par action diluée), en hausse de 4,8 % par rapport à l'année précédente. Le NOI des propriétés nationales a augmenté de 5,4 %, tandis que le NOI du portefeuille a progressé de 5,0 %. Le taux d'occupation s'est amélioré à 96,2 % et le loyer de base par pied carré a augmenté de 2,3 %, atteignant 57,71 dollars. L'entreprise a ouvert avec succès les Tulsa Premium Outlets et a élargi les Busan Premium Outlets. Le dividende trimestriel a été augmenté de 10,5 % à 2,10 dollars par action. Simon maintient ses prévisions pour 2024, avec un FFO attendu entre 12,80 et 12,90 dollars par action diluée.

Simon hat im dritten Quartal 2024 starke Ergebnisse mit einem Nettoergebnis von 475,2 Millionen Dollar (1,46 Dollar pro verwässerter Aktie) berichtet. Der FFO Immobilien erreichte 1,144 Milliarden Dollar (3,05 Dollar pro verwässerter Aktie), was einem Anstieg von 4,8% im Vergleich zum Vorjahr entspricht. Das NOI der inländischen Immobilien stieg um 5,4%, während das NOI des Portfolios um 5,0% wuchs. Die Belegungsquote verbesserte sich auf 96,2%, und die Grundmiete pro Quadratfuß stieg um 2,3% auf 57,71 Dollar. Das Unternehmen hat erfolgreich die Tulsa Premium Outlets eröffnet und die Busan Premium Outlets erweitert. Die vierteljährliche Dividende wurde um 10,5% auf 2,10 Dollar pro Aktie erhöht. Simon hält an seiner Prognose für 2024 fest, mit einem erwarteten FFO zwischen 12,80 und 12,90 Dollar pro verwässerter Aktie.

Positive
  • Real Estate FFO increased 4.8% YoY to $3.05 per diluted share
  • Domestic property NOI grew 5.4%
  • Occupancy improved to 96.2%, up 1.0% YoY
  • Base minimum rent increased 2.3% to $57.71 per square foot
  • Quarterly dividend raised 10.5% to $2.10 per share
  • Strong liquidity position with $11.1 billion available
Negative
  • Net income decreased from $594.1M to $475.2M YoY
  • Non-cash net loss of $49.3M due to Klépierre bonds fair value adjustment
  • FFO per diluted share declined from $3.20 to $2.84 YoY

Insights

Simon Property Group delivered strong Q3 2024 results with several positive indicators. Real Estate FFO increased 4.8% year-over-year to $3.05 per share, while portfolio NOI grew by 5.0%. The company's occupancy rate reached 96.2%, up 100 basis points from last year, with base minimum rent increasing 2.3% to $57.71 per square foot.

The dividend increase of 10.5% to $2.10 per share signals management's confidence in sustained cash flow generation. The company's robust liquidity position of $11.1 billion, including $3.0 billion in cash, provides significant financial flexibility. The successful $1.0 billion senior notes offering at 4.75% demonstrates strong market access, though at a higher cost than historical levels.

The operational metrics show resilience in Simon's premium retail portfolio. The $737 sales per square foot indicates strong consumer spending at their properties. The expansion strategy remains active with two significant openings - Tulsa Premium Outlets and Busan Premium Outlets expansion, demonstrating continued growth opportunities in both domestic and international markets.

The company's ability to secure non-recourse mortgage loans at 6.13% in the current high-rate environment reflects the quality of their assets. The reaffirmed guidance suggests stability in their core business model despite broader retail sector challenges, with management expecting FFO between $12.80 and $12.90 per share for 2024.

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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SOURCE Simon

FAQ

What was Simon's (SPG) Q3 2024 net income per share?

Simon reported Q3 2024 net income of $1.46 per diluted share, compared to $1.82 per diluted share in Q3 2023.

What is Simon's (SPG) new quarterly dividend for Q4 2024?

Simon increased its quarterly dividend to $2.10 per share, representing a 10.5% year-over-year increase.

What was Simon's (SPG) occupancy rate in Q3 2024?

Simon's occupancy rate was 96.2% as of September 30, 2024, a 1.0% increase from 95.2% in the prior year.

What is Simon's (SPG) FFO guidance for full-year 2024?

Simon expects FFO to be between $12.80 and $12.90 per diluted share for full-year 2024, excluding certain adjustments.

Simon Property Group, Inc.

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