INDIANAPOLIS, Feb. 4, 2025
/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
and twelve months ended December 31,
2024.
"I am extremely pleased with our fourth quarter results,
concluding another successful and productive year for our Company,"
said David Simon, Chairman, Chief
Executive Officer and President. "In 2024, we generated record
Funds From Operations of nearly $4.9
billion and returned more than $3
billion to shareholders. We executed over 21 million
square feet of leases, opened a fully-leased, new Premium Outlet in
the U.S., delivered 16 significant redevelopment projects,
including an expansion of a leading Premium Outlet in South Korea, and strengthened our
industry-leading balance sheet."
Results for the Year
- Net income attributable to common stockholders was $2.368 billion, or $7.26 per diluted share, as compared to
$2.280 billion, or $6.98 per diluted share in 2023.
- Net income for 2024 includes after-tax gains of $386.4 million, or $1.03 per diluted share, combined, from the sale
of the Company's remaining ownership interest in Authentic Brands
Group ("ABG") and the recent combination of JCPenney and SPARC
Group, renamed Catalyst Brands.
- Net income for 2023 included non-cash after-tax gains of
$282.9 million or $0.75 per diluted share from investment
activity.
- Funds From Operations ("FFO") was $4.877
billion, or $12.99 per diluted
share as compared to $4.686 billion,
or $12.51 per diluted share in the
prior year, inclusive of the items referenced immediately
above.
- Real Estate Funds From Operations ("Real Estate FFO") was
$4.597 billion, or $12.24 per diluted share as compared to
$4.409 billion, or $11.78 per diluted share in the prior year, an
increase of 3.9% year-over-year.
- Domestic property Net Operating Income ("NOI") increased 4.7%
and portfolio NOI increased 4.6% compared to the prior year
period.
Results for the Quarter
- Net income attributable to common stockholders was $667.2 million, or $2.04 per diluted share, as compared to
$747.5 million, or $2.29 per diluted share in 2023.
- Net income for the fourth quarter of 2024 includes a non-cash,
after-tax gain of $75.3 million, or
$0.20 per diluted share from the
combination of JCPenney and SPARC Group.
- Net income for the fourth quarter of 2023 included after-tax
net gains of $117.4 million, or
$0.31 per diluted share, primarily
due to the sale of part of the Company's interest in ABG.
- FFO was $1.389 billion, or
$3.68 per diluted share as compared
to $1.382 billion, or $3.69 per diluted share in the prior year,
inclusive of the $0.20 per diluted
share gain in the current period and the $0.31 per diluted share net gains in the prior
year period mentioned above.
- Real Estate FFO was $1.261
billion, or $3.35 per diluted
share as compared to $1.208 billion,
or $3.23 per diluted share in the
prior year, an increase of 3.7% year-over-year.
- Domestic property NOI increased 4.4% and portfolio NOI
increased 4.5% compared to the prior year period.
U.S. Malls and Premium Outlets Operating Statistics
- Occupancy at December 31, 2024
was 96.5%, a 0.7% increase compared to 95.8% at December 31, 2023.
- Base minimum rent per square foot was $58.26 at December 31,
2024, compared to $56.82 at
December 31, 2023, an increase of
2.5%.
- Reported retailer sales per square foot was $739 for the trailing 12 months ended
December 31, 2024.
Capital Markets and Balance Sheet Liquidity
The
Company was active in both the secured and unsecured credit markets
in 2024.
During the year, the Company completed a senior notes offering
totaling $1.0 billion with a term of
10 years and 4.75% coupon as well as amended and extended its
$3.5 billion unsecured multi-currency
revolving credit facility. The Company completed 33 secured
loan transactions totaling approximately $6.8 billion (U.S. dollar equivalent). The
weighted average interest rate on these loans was 6.11%.
As of December 31, 2024, Simon had
approximately $10.1 billion of
liquidity consisting of $2.0 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 first quarter of 2025. This
is an increase of $0.15, or 7.7%
year-over-year. The dividend will be payable on March 31, 2025 to shareholders of record on
March 10, 2025.
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, 2025 to
shareholders of record on March 17,
2025.
2025 Guidance
The Company currently estimates
net income to be within a range of $6.95 to $7.20 per
diluted share and Real Estate FFO and FFO
to be within a range of $12.40
to $12.65 per diluted share for the
year ending December 31, 2025.
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 estimated Real Estate FFO
and FFO per diluted share:
|
For the year ending
December 31, 2025
|
|
|
|
|
Low
|
|
High
|
|
End
|
|
End
|
|
Estimated net income
attributable to common stockholders per diluted share
|
$6.95
|
|
$7.20
|
|
Depreciation and
amortization including Simon's share of unconsolidated
entities
|
5.45
|
|
5.45
|
|
Estimated Real Estate
FFO and Estimated FFO per diluted share
|
$12.40
|
|
$12.65
|
The Company is not providing guidance for Other Platform
Investments.
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, Tuesday, February 4, 2025. 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 11,
2025. To access the audio replay, dial 1-844-512-2921
(international +1-412-317-6671) passcode 13751006.
Supplemental Materials and Website
Supplemental
information on our fourth 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 due to 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: the intensely competitive market environment in the
retail industry, including e-commerce; 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 loss of key management personnel; 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
potential for violence, civil unrest, criminal activity or
terrorist activities at our properties; the availability of
comprehensive insurance coverage; security breaches that could
compromise our information technology or infrastructure; changes in
market rates of interest; 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; 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; 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; risks relating to our joint venture properties,
including guarantees of certain joint venture indebtedness;
reducing emissions of greenhouse gases; environmental liabilities;
natural disasters; 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; 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 Twelve
Months
|
|
Ended December
31,
|
|
Ended December
31,
|
|
2024
|
2023
|
|
2024
|
2023
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
Lease income
|
$
1,431,524
|
$ 1,362,455
|
|
$
5,389,760
|
$ 5,164,335
|
|
Management fees and
other revenues
|
37,147
|
33,484
|
|
133,250
|
125,995
|
|
Other income
|
113,561
|
131,499
|
|
440,788
|
368,506
|
|
Total
revenue
|
1,582,232
|
1,527,438
|
|
5,963,798
|
5,658,836
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
|
Property
operating
|
131,233
|
122,793
|
|
529,753
|
489,346
|
|
Depreciation and
amortization
|
327,591
|
320,256
|
|
1,265,340
|
1,262,107
|
|
Real estate
taxes
|
108,792
|
103,330
|
|
408,641
|
441,783
|
|
Repairs and
maintenance
|
31,748
|
29,420
|
|
105,020
|
97,257
|
|
Advertising and
promotion
|
43,504
|
40,633
|
|
144,551
|
127,346
|
|
Home and regional
office costs
|
58,721
|
53,113
|
|
223,277
|
207,618
|
|
General and
administrative
|
15,602
|
10,278
|
|
44,743
|
38,513
|
|
Other
|
29,295
|
55,476
|
|
149,677
|
187,844
|
|
Total operating
expenses
|
746,486
|
735,299
|
|
2,871,002
|
2,851,814
|
|
|
|
|
|
|
|
OPERATING INCOME
BEFORE OTHER ITEMS
|
835,746
|
792,139
|
|
3,092,796
|
2,807,022
|
|
|
|
|
|
|
|
Interest
expense
|
(227,414)
|
(224,923)
|
|
(905,797)
|
(854,648)
|
|
Gain due to disposal,
exchange, or revaluation of equity interests, net
|
36,403
|
167,390
|
|
451,172
|
362,019
|
|
Income and other tax
benefit (expense)
|
31,908
|
(41,622)
|
|
(23,262)
|
(81,874)
|
|
Income from
unconsolidated entities
|
140,947
|
167,828
|
|
207,322
|
375,663
|
|
Unrealized gains
(losses) in fair value of publicly traded equity instruments
and
|
|
|
|
|
|
|
derivative instrument,
net
|
36,740
|
(8,157)
|
|
(17,392)
|
11,892
|
|
(Loss) gain on
acquisition of controlling interest, sale or disposal of, or
recovery on,
|
|
|
|
|
|
|
assets and interests in
unconsolidated entities and impairment, net
|
(82,570)
|
6,841
|
|
(75,818)
|
(3,056)
|
|
|
|
|
|
|
|
CONSOLIDATED NET
INCOME
|
771,760
|
859,496
|
|
2,729,021
|
2,617,018
|
|
|
|
|
|
|
|
Net income attributable
to noncontrolling interests
|
103,695
|
111,182
|
|
358,125
|
333,892
|
|
Preferred
dividends
|
834
|
834
|
|
3,337
|
3,337
|
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
667,231
|
$ 747,480
|
|
$
2,367,559
|
$ 2,279,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
2.04
|
$ 2.29
|
|
$
7.26
|
$ 6.98
|
|
Simon Property
Group, Inc.
|
|
Unaudited
Consolidated Balance Sheets
|
|
(Dollars in
thousands, except share amounts)
|
|
|
December
31,
|
December 31,
|
|
2024
|
2023
|
|
ASSETS:
|
|
|
|
Investment properties,
at cost
|
$
40,242,392
|
$ 39,285,138
|
|
Less - accumulated
depreciation
|
19,047,078
|
17,716,788
|
|
21,195,314
|
21,568,350
|
|
Cash and cash
equivalents
|
1,400,345
|
1,168,991
|
|
Short-term
investments
|
-
|
1,000,000
|
|
Tenant receivables and
accrued revenue, net
|
796,513
|
826,126
|
|
Investment in TRG, at
equity
|
3,069,297
|
3,049,719
|
|
Investment in
Klépierre, at equity
|
1,384,267
|
1,527,872
|
|
Investment in other
unconsolidated entities, at equity
|
2,670,739
|
3,540,648
|
|
Right-of-use assets,
net
|
519,607
|
484,073
|
|
Deferred costs and
other assets
|
1,369,609
|
1,117,716
|
|
Total
assets
|
$
32,405,691
|
$ 34,283,495
|
|
|
|
|
LIABILITIES:
|
|
|
|
Mortgages and unsecured
indebtedness
|
$
24,264,495
|
$ 26,033,423
|
|
Accounts payable,
accrued expenses, intangibles, and deferred revenues
|
1,712,465
|
1,693,248
|
|
Cash distributions and
losses in unconsolidated entities, at equity
|
1,680,431
|
1,760,922
|
|
Dividend
payable
|
2,410
|
1,842
|
|
Lease
liabilities
|
520,283
|
484,861
|
|
Other
liabilities
|
626,155
|
621,601
|
|
Total
liabilities
|
28,806,239
|
30,595,897
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
Limited partners'
preferred interest in the Operating Partnership and
noncontrolling
|
|
|
|
redeemable
interests
|
184,729
|
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
|
40,778
|
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
|
11,583,051
|
11,406,236
|
|
Accumulated
deficit
|
(6,382,515)
|
(6,095,576)
|
|
Accumulated other
comprehensive loss
|
(193,026)
|
(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
|
2,941,925
|
3,022,834
|
|
Noncontrolling
interests
|
472,798
|
468,815
|
|
Total
equity
|
3,414,723
|
3,491,649
|
|
Total liabilities
and equity
|
$
32,405,691
|
$ 34,283,495
|
|
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,
|
|
2024
|
2023
|
|
2024
|
2023
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
Lease income
|
$
803,654
|
$ 772,258
|
|
$
3,060,755
|
$ 2,984,455
|
|
Other income
|
107,089
|
106,797
|
|
385,004
|
464,058
|
|
Total
revenue
|
910,743
|
879,055
|
|
3,445,759
|
3,448,513
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
Property
operating
|
165,794
|
163,275
|
|
660,004
|
638,638
|
|
Depreciation and
amortization
|
162,824
|
172,727
|
|
636,218
|
656,089
|
|
Real estate
taxes
|
50,876
|
45,258
|
|
231,843
|
237,809
|
|
Repairs and
maintenance
|
19,155
|
21,642
|
|
74,172
|
77,093
|
|
Advertising and
promotion
|
25,400
|
24,577
|
|
88,693
|
83,279
|
|
Other
|
137,912
|
56,742
|
|
299,645
|
236,955
|
|
Total operating
expenses
|
561,961
|
484,221
|
|
1,990,575
|
1,929,863
|
|
|
|
|
|
|
|
OPERATING INCOME
BEFORE OTHER ITEMS
|
348,782
|
394,834
|
|
1,455,184
|
1,518,650
|
|
|
|
|
|
|
|
Interest
expense
|
(178,710)
|
(176,964)
|
|
(711,402)
|
(685,193)
|
|
(Loss) gain on sale or
disposal of, or recovery on, assets and interests in unconsolidated
entities and impairment, net
|
(36,536)
|
-
|
|
(36,536)
|
20,529
|
|
|
|
|
|
|
|
NET
INCOME
|
$
133,536
|
$ 217,870
|
|
$
707,246
|
$ 853,986
|
|
|
|
|
|
|
|
Third-Party
Investors' Share of Net Income
|
$
69,275
|
$ 107,069
|
|
$
360,792
|
$ 436,408
|
|
|
|
|
|
|
|
Our Share of Net
Income
|
64,261
|
110,801
|
|
346,454
|
417,578
|
|
Amortization of
Excess Investment (A)
|
(14,599)
|
(14,926)
|
|
(58,163)
|
(59,707)
|
|
Our Share of loss
due to disposal, exchange, or revaluation of
|
|
|
|
|
|
|
equity interests,
net in the Consolidated Financial Statements
|
36,470
|
-
|
|
36,470
|
-
|
|
Our Share of loss
(gain) on acquisition of controlling interest, sale or disposal of,
or
|
|
|
|
|
|
|
recovery on, assets
and interests in unconsolidated entities and impairment,
net
|
18,236
|
-
|
|
18,236
|
(454)
|
|
|
|
|
|
|
|
Income from
Unconsolidated Entities (B)
|
$
104,368
|
$ 95,875
|
|
$
342,997
|
$ 357,417
|
|
|
|
|
|
|
|
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)
|
|
|
December
31,
|
December
31,
|
|
2024
|
2023
|
|
Assets:
|
|
|
|
Investment properties,
at cost
|
$
18,875,241
|
$ 19,315,578
|
|
Less - accumulated
depreciation
|
8,944,188
|
8,874,745
|
|
9,931,053
|
10,440,833
|
|
Cash and cash
equivalents
|
1,270,594
|
1,372,377
|
|
Tenant receivables and
accrued revenue, net
|
533,676
|
505,933
|
|
Right-of-use assets,
net
|
113,014
|
126,539
|
|
Deferred costs and
other assets
|
531,059
|
537,943
|
|
Total assets
|
$
12,379,396
|
$ 12,983,625
|
|
|
|
|
Liabilities and
Partners' Deficit:
|
|
|
|
Mortgages
|
$
13,666,090
|
$ 14,282,839
|
|
Accounts payable,
accrued expenses, intangibles, and deferred revenue
|
1,037,015
|
1,032,217
|
|
Lease
liabilities
|
104,120
|
116,535
|
|
Other
liabilities
|
363,488
|
368,582
|
|
Total
liabilities
|
15,170,713
|
15,800,173
|
|
|
|
|
Preferred
units
|
67,450
|
67,450
|
|
Partners'
deficit
|
(2,858,767)
|
(2,883,998)
|
|
Total liabilities and
partners' deficit
|
$
12,379,396
|
$ 12,983,625
|
|
|
|
|
Our Share
of:
|
|
|
|
Partners'
deficit
|
$
(1,180,960)
|
$
(1,258,809)
|
|
Add: Excess Investment
(A)
|
1,077,204
|
1,173,852
|
|
Our net Investment in
unconsolidated entities, at equity
|
$
(103,756)
|
$ (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 Twelve
Months Ended
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Income (D)
|
|
|
$
771,760
|
|
$
859,496
|
|
$
2,729,021
|
|
$ 2,617,018
|
|
Adjustments to
Arrive at FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from consolidated
|
|
|
|
|
|
|
|
|
properties
|
|
|
323,858
|
|
316,881
|
|
1,250,440
|
|
1,250,550
|
|
Our share of
depreciation and amortization from
|
|
|
|
|
|
|
|
|
unconsolidated entities,
including Klépierre, TRG and other corporate investments
|
217,727
|
|
219,604
|
|
848,188
|
|
841,862
|
|
Loss (gain) on
acquisition of controlling interest, sale or disposal of, or
recovery on,
|
|
|
|
|
|
|
|
|
assets and interests in
unconsolidated entities and impairment, net
|
82,570
|
|
(6,841)
|
|
75,818
|
|
3,056
|
|
Net (income) loss
attributable to noncontrolling interest holders in
|
|
|
|
|
|
|
|
|
properties
|
|
|
(92)
|
|
585
|
|
1,641
|
|
1,336
|
|
Noncontrolling
interests portion of depreciation and amortization, gain on
consolidation of properties,
|
|
|
|
|
|
|
|
|
and loss (gain) on
disposal of properties
|
(5,950)
|
|
(6,464)
|
|
(23,367)
|
|
(22,719)
|
|
Preferred distributions
and dividends
|
(1,125)
|
|
(1,298)
|
|
(4,897)
|
|
(5,237)
|
|
FFO of the Operating
Partnership
|
|
$
1,388,748
|
|
$ 1,381,963
|
|
$
4,876,844
|
|
$ 4,685,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO of the Operating
Partnership
|
|
$
1,388,748
|
|
$ 1,381,963
|
|
$
4,876,844
|
|
$ 4,685,866
|
|
Gain due to disposal,
exchange, or revaluation of equity interests, net of tax
|
(75,340)
|
|
(125,543)
|
|
(386,417)
|
|
(271,009)
|
|
Other platform
investments, net of tax
|
(15,187)
|
|
(56,481)
|
|
88,902
|
|
6,166
|
|
Unrealized (gains)
losses in fair value of publicly traded equity instruments and
derivative instrument, net
|
(36,740)
|
|
8,157
|
|
17,392
|
|
(11,892)
|
|
Real Estate
FFO
|
|
|
|
$
1,261,481
|
|
$ 1,208,096
|
|
$
4,596,721
|
|
$ 4,409,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share to diluted FFO per share reconciliation:
|
|
|
|
|
|
|
|
|
Diluted net income
per share
|
|
|
$
2.04
|
|
$
2.29
|
|
$
7.26
|
|
$
6.98
|
|
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
|
1.42
|
|
1.42
|
|
5.53
|
|
5.52
|
|
Loss (gain) on
acquisition of controlling interest, sale or disposal of, or
recovery on,
|
|
|
|
|
|
|
|
|
assets and interests in
unconsolidated entities and impairment, net
|
0.22
|
|
(0.02)
|
|
0.20
|
|
0.01
|
|
Diluted FFO per
share
|
|
|
$
3.68
|
|
$
3.69
|
|
$
12.99
|
|
$
12.51
|
|
Gain due to disposal,
exchange, or revaluation of equity interests, net of tax
|
(0.20)
|
|
(0.33)
|
|
(1.03)
|
|
(0.72)
|
|
Other platform
investments, net of tax
|
(0.04)
|
|
(0.15)
|
|
0.23
|
|
0.02
|
|
Unrealized (gains)
losses in fair value of publicly traded equity instruments and
derivative instrument, net
|
(0.09)
|
|
0.02
|
|
0.05
|
|
(0.03)
|
|
Real Estate FFO per
share
|
|
|
$
3.35
|
|
$
3.23
|
|
$
12.24
|
|
$
11.78
|
|
|
|
|
|
3.7 %
|
|
|
|
3.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details for per share
calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO of the Operating
Partnership
|
|
$
1,388,748
|
|
$ 1,381,963
|
|
$
4,876,844
|
|
$ 4,685,866
|
|
Diluted FFO allocable
to unitholders
|
|
(186,158)
|
|
(179,592)
|
|
(640,886)
|
|
(597,727)
|
|
Diluted FFO allocable
to common stockholders
|
$
1,202,590
|
|
$ 1,202,371
|
|
$
4,235,958
|
|
$ 4,088,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares outstanding
|
326,278
|
|
325,934
|
|
326,097
|
|
326,808
|
|
Weighted average
limited partnership units outstanding
|
50,713
|
|
48,930
|
|
49,338
|
|
47,782
|
|
Basic and Diluted
weighted average shares and units outstanding
|
376,991
|
|
374,864
|
|
375,435
|
|
374,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted FFO
per Share
|
|
$
3.68
|
|
$
3.69
|
|
$
12.99
|
|
$
12.51
|
|
Percent Change
|
|
|
|
-0.3 %
|
|
|
|
3.8 %
|
|
|
|
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
$6.6 million and $5.8 million for the three months ended December
31, 2024 and 2023, respectively, and $21.9 million and $13.6
million for the twelve months ended December 31, 2024 and 2023,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Straight-line
adjustments increased (decreased) income by $7.3 million and ($1.0)
million for the three months ended December 31, 2024 and 2023,
respectively, and $2.2 million and ($11.4) million for the twelve
months ended December 31, 2024 and 2023, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Amortization of fair
market value of leases increased income by $0.4 million and $0.0
million for the three months ended December 31, 2024 and 2023,
respectively, and $0.8 million and $0.2 million for the twelve
months ended December 31, 2024 and 2023, respectively.
|
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SOURCE Simon
