INDIANAPOLIS, Jan. 31, 2018 /PRNewswire/ -- Simon, a global
leader in premier shopping, dining and entertainment destinations,
today reported results for the quarter and twelve months ended
December 31, 2017.
Results for the Year1
- Net income attributable to common stockholders was $1.945 billion, or $6.24 per diluted share, as compared to
$1.836 billion, or $5.87 per diluted share, in the prior year
period. The 2017 and 2016 results include charges related to the
redemption of certain senior notes of Simon Property Group, L.P. of
$0.36 and $0.38 per diluted share, respectively.
- Funds from Operations ("FFO") was $4.021
billion, or $11.21 per diluted
share, as compared to $3.793 billion,
or $10.49 per diluted share, in the
prior year period, an increase of 6.9%. The 2017 and 2016 results
include the aforementioned charges related to the redemption of
certain of our senior notes.
- Growth in comparable FFO per diluted share for the twelve
months ended December 31, 2017 was
6.4%.
Results for the Quarter1
- Net income attributable to common stockholders was $571.1 million, or $1.84 per diluted share, as compared to
$394.4 million, or $1.26 per diluted share, in the prior year
period. Results for the fourth quarter of 2016 include a
$0.38 per diluted share charge
related to the redemption of certain senior notes.
- FFO was $1.115 billion, or
$3.12 per diluted share, as compared
to $912.2 million, or $2.53 per diluted share, in the prior year
period. FFO in the fourth quarter of 2016 includes the
aforementioned charge related to the redemption of certain of our
senior notes.
- Growth in comparable FFO per diluted share for the three months
ended December 31, 2017 was
7.2%.
1 For a reconciliation of FFO and net income per
diluted share on a comparable basis, please see Footnote J of the
Footnotes to Unaudited Financial Information.
"We had a strong fourth quarter concluding another year of
industry-leading growth with record earnings and dividends for our
company," said David Simon, Chairman
and Chief Executive Officer. "In 2017, we opened five new
centers, delivered six significant property transformations and
expansions, and completed several major financing transactions that
further enhanced our strong balance sheet. We continue to
strengthen our portfolio through our innovative and disciplined
investment activities that will allow us to continue to deliver
cash flow and FFO per share growth."
U.S. Malls and Premium Outlets Operating Statistics
- Occupancy was 95.6% at December 31,
2017.
- Base minimum rent per square foot was $53.11 at December 31,
2017, an increase of 2.9% compared to the prior year
period.
- Leasing spread per square foot for the trailing 12-months ended
December 31, 2017 was $7.42, an increase of 11.4%.
Portfolio Net Operating Income ("NOI") and Comparable
Property NOI
Total portfolio NOI growth for the twelve months ended
December 31, 2017 was 4.5%.
Total portfolio NOI includes comparable property NOI, NOI from new
development, redevelopment, expansion and acquisitions, NOI from
international properties and our share of NOI from
investments. Comparable property NOI growth for the twelve
months ended December 31, 2017 was
3.2%.
Dividends
Today, Simon's Board of Directors declared a quarterly common
stock dividend of $1.95 per
share. This is an 11.4% increase year-over-year. The
dividend will be payable on February 28,
2018 to stockholders of record on February 14, 2018.
Simon's Board of Directors also 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 30, 2018 to
stockholders of record on March 16,
2018.
Development Activity
During the quarter, the Company announced plans to create the
Southeast's premier mixed-use development at Atlanta's Phipps
Plaza, headlined by the arrival of a new Nobu Hotel and Nobu
Atlanta Restaurant. Additional elements of this exciting new
development call for a unique, curated dining experience, a 90,000
square-foot Life Time® Athletic healthy living and entertainment
destination, and a 12-story Class A office building, complete with
a three-story lower level parking garage. Construction is
slated to commence in 2018 with a phased opening beginning in
spring 2020.
During the quarter, we started construction on two new
development projects scheduled to open in 2018, including:
- Malaga Designer Outlet (Malaga, Spain); scheduled to open in November. Simon
owns a 46% interest in this project.
- Queretaro Premium Outlets (Queretaro,
Mexico); scheduled to open in December. Simon owns a 50%
interest in this project.
Construction continues on two new development projects scheduled
to open in 2018, including:
- Premium Outlet Collection Edmonton IA (Edmonton, Alberta, Canada); scheduled to open
in May. Simon owns a 50% interest in this project.
- Denver Premium Outlets (Thornton,
Colorado); scheduled to open in September. Simon owns 100%
of this project.
Construction also continues on significant redevelopment and
expansion projects at properties including Aventura Mall, Town
Center at Boca Raton and Toronto
Premium Outlets.
At quarter-end, redevelopment and expansion projects, including
the addition of new anchors, were underway at 25 properties in the
U.S., Canada and Asia.
Financing Activity
The Company was active in both the unsecured and secured credit
markets in 2017, continuing to lower our effective borrowing
costs.
The Company completed two senior notes offerings totaling
$2.7 billion, with a weighted average
coupon rate of 3.07% and a weighted average term of 7.9
years.
During 2017, and subsequent to year-end, we retired three series
of senior notes comprising approximately $2.6 billion at a weighted average coupon rate of
3.65%. The two new notes offerings had a weighted average
coupon rate approximately 60 basis points lower than the notes that
were retired.
The Company also amended and extended its $4.0 billion multi-currency revolving credit
facility, which reduced pricing to LIBOR plus 77.5 basis points and
extended the term to June 30,
2022.
With regard to secured debt activity, we closed or committed on
20 mortgage loans totaling approximately $2.9 billion, (U.S. dollar equivalent), of which
Simon's share is $1.8 billion.
The weighted average interest rate and weighted average term on
these loans is 3.37% and 6.7 years, respectively.
As of December 31, 2017, Simon had
approximately $8.0 billion of
liquidity consisting of cash on hand, including its share of joint
venture cash, and available capacity under its revolving credit
facilities.
2018 Guidance
The Company currently estimates net income to be within a range
of $6.90 to $7.02 per diluted share for the year ending
December 31, 2018 and that FFO will
be within a range of $11.90 to
$12.02 per diluted share.
The following table provides the reconciliation for the expected
range of estimated net income available to common stockholders per
diluted share to estimated FFO per diluted share:
For the year ending December 31,
2018
|
Low
|
|
High
|
|
End
|
|
End
|
Estimated net income
available to common stockholders
|
|
|
|
per diluted share
|
$6.90
|
|
$7.02
|
Depreciation and
amortization including Simon's share
|
|
|
|
of unconsolidated
entities
|
5.00
|
|
5.00
|
|
|
|
|
Estimated FFO per
diluted share
|
$11.90
|
|
$12.02
|
Conference Call
Simon will hold a conference call to discuss the quarterly
financial results today at 8:30 a.m. Eastern
Time, Wednesday, January 31,
2018. 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 6, 2018. To access the
audio replay, dial 1-855-859-2056 (international 404-537-3406)
passcode 4376318.
Supplemental Materials and Website
Supplemental information on our fourth quarter 2017 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 at 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, comparable FFO
per share, comparable earnings per share, portfolio net operating
income growth and comparable property net operating income growth,
which are financial performance measures not defined by generally
accepted accounting principles in the
United States ("GAAP"). Reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP measures
are included in this press release and in Simon's supplemental
information for the quarter. FFO and comparable property net
operating income growth are financial performance measures widely
used in the REIT industry. Our definitions of these non-GAAP
measures may not be the same as similar measures reported by other
REITs.
Forward-Looking Statements
Certain statements made in this press release may be deemed
"forward‑looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Although the Company
believes the expectations reflected in any forward‑looking
statements are based on reasonable assumptions, the Company can
give no assurance that its expectations will be attained, and it is
possible that the Company's actual results may differ materially
from those indicated by these forward‑looking statements due to a
variety of risks, uncertainties and other factors. Such factors
include, but are not limited to: changes in economic and market
conditions that adversely affect the general retail environment;
the potential loss of anchor stores or major tenants; the inability
to collect rent due to the bankruptcy or insolvency of tenants or
otherwise; decreases in market rental rates; the intensely
competitive market environment in the retail industry; the
inability to lease newly developed properties and renew leases and
relet space at existing properties on favorable terms; risks
related to international activities, including, without limitation,
the impact of the United Kingdom's
vote to leave the European Union; changes to applicable laws or
regulations or the interpretation thereof; risks associated with
the acquisition, development, redevelopment, expansion, leasing and
management of properties; general risks related to real estate
investments, including the illiquidity of real estate investments;
the impact of our substantial indebtedness on our future
operations; any disruption in the financial markets that adversely
affects our ability to access capital for growth and satisfy our
ongoing debt service requirements; any change in our credit rating;
changes in market rates of interest and foreign exchange rates for
foreign currencies; changes in the value of our investments in
foreign entities; our ability to hedge interest rate and currency
risk; our continued ability to maintain our status as a REIT;
changes in tax laws or regulations that result in adverse tax
consequences; risks relating to our joint venture properties;
environmental liabilities; changes in insurance costs, the
availability of comprehensive insurance coverage; security breaches
that could compromise our information technology or infrastructure;
natural disasters; the potential for terrorist activities; and the
loss of key management personnel. The Company discusses these and
other risks and uncertainties under the heading "Risk Factors" in
its annual and quarterly periodic reports filed with the SEC.
The Company may update that discussion in its periodic reports, but
except as required by law, the Company undertakes no duty or
obligation to update or revise these forward-looking statements,
whether as a result of new information, future developments, or
otherwise.
About Simon
Simon is a global leader in the ownership of premier shopping,
dining, entertainment and mixed-use destinations and an S&P 100
company (Simon Property Group, NYSE:SPG). Our properties across
North America, Europe and Asia provide community gathering places for
millions of people every day and generate billions in annual sales.
For more information, visit simon.com.
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,
|
|
2017
|
2016
|
|
2017
|
2016
|
|
|
|
|
|
|
REVENUE
(1) :
|
|
|
|
|
|
Minimum
rent
|
$
880,475
|
$ 874,937
|
|
$
3,440,009
|
$
3,358,498
|
Overage
rent
|
52,870
|
61,253
|
|
147,471
|
161,508
|
Tenant
reimbursements
|
386,767
|
377,941
|
|
1,532,923
|
1,494,804
|
Management fees and
other revenues
|
30,400
|
34,277
|
|
121,259
|
143,875
|
Other
income
|
77,180
|
77,558
|
|
296,978
|
276,544
|
Total
revenue
|
1,427,692
|
1,425,966
|
|
5,538,640
|
5,435,229
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
Property
operating
|
112,951
|
104,479
|
|
443,177
|
432,394
|
Depreciation and
amortization
|
325,187
|
336,717
|
|
1,275,452
|
1,252,673
|
Real estate
taxes
|
107,976
|
110,374
|
|
440,003
|
439,030
|
Repairs and
maintenance
|
24,247
|
27,638
|
|
96,900
|
99,723
|
Advertising and
promotion
|
42,416
|
38,896
|
|
150,865
|
142,801
|
Provision for
(recovery of) credit losses
|
539
|
(542)
|
|
11,304
|
7,319
|
Home and regional
office costs
|
24,243
|
37,867
|
|
135,150
|
158,406
|
General and
administrative
|
11,883
|
19,939
|
|
51,972
|
65,082
|
Other
|
28,798
|
50,097
|
|
131,477
|
116,973
|
Total operating
expenses
|
678,240
|
725,465
|
|
2,736,300
|
2,714,401
|
|
|
|
|
|
|
OPERATING
INCOME
|
749,452
|
700,501
|
|
2,802,340
|
2,720,828
|
|
|
|
|
|
|
Interest
expense
|
(204,986)
|
(209,508)
|
|
(809,393)
|
(857,554)
|
Loss on
extinguishment of debt
|
-
|
(136,777)
|
|
(128,618)
|
(136,777)
|
Income and other
taxes
|
(6,362)
|
(1,052)
|
|
(23,343)
|
(29,678)
|
Income from
unconsolidated entities
|
123,059
|
94,344
|
|
400,270
|
353,334
|
(Loss) gain upon
acquisition of controlling interests and sale or disposal
of
|
|
|
|
|
|
assets and
interests in unconsolidated entities, net
|
(1,342)
|
8,094
|
|
3,647
|
84,553
|
|
|
|
|
|
|
CONSOLIDATED NET
INCOME
|
659,821
|
455,602
|
|
2,244,903
|
2,134,706
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
87,871
|
60,337
|
|
296,941
|
295,810
|
Preferred
dividends
|
834
|
834
|
|
3,337
|
3,337
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
571,116
|
$ 394,431
|
|
$
1,944,625
|
$
1,835,559
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
1.84
|
$ 1.26
|
|
$
6.24
|
$ 5.87
|
|
(1) No revenue was
recognized for the three months ended December 31, 2017 from the
Company's two centers in Puerto Rico as a result of ongoing repair
and restoration efforts due to the impact of Hurricane
Maria.
|
|
Simon Property
Group, Inc.
|
Unaudited
Consolidated Balance Sheets
|
(Dollars in
thousands, except share amounts)
|
|
|
December
31,
|
December
31,
|
|
2017
|
2016
|
ASSETS:
|
|
|
Investment properties, at cost
|
$
36,393,464
|
$
35,226,089
|
Less -
accumulated depreciation
|
11,935,949
|
10,865,754
|
|
24,457,515
|
24,360,335
|
Cash and
cash equivalents
|
1,482,309
|
560,059
|
Tenant
receivables and accrued revenue, net
|
742,672
|
664,619
|
Investment in unconsolidated entities, at equity
|
2,266,483
|
2,367,583
|
Investment in Klépierre, at equity
|
1,934,676
|
1,797,394
|
Deferred
costs and other assets
|
1,373,983
|
1,353,588
|
Total assets
|
$
32,257,638
|
$
31,103,578
|
|
|
|
LIABILITIES:
|
|
|
Mortgages and unsecured indebtedness
|
$
24,632,463
|
$
22,977,104
|
Accounts
payable, accrued expenses, intangibles, and deferred
revenues
|
1,269,190
|
1,214,022
|
Cash
distributions and losses in unconsolidated entities, at
equity
|
1,406,378
|
1,359,738
|
Other
liabilities
|
520,363
|
455,040
|
Total
liabilities
|
27,828,394
|
26,005,904
|
|
|
|
Commitments and
contingencies
|
|
|
Limited partners'
preferred interest in the Operating Partnership and
noncontrolling
|
|
|
redeemable interests
in properties
|
190,480
|
137,762
|
|
|
|
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
|
43,077
|
43,405
|
|
|
|
Common
stock, $ 0.0001 par value, 511,990,000 shares authorized,
320,322,774 and
|
|
|
319,823,322 issued and outstanding,
respectively
|
32
|
32
|
|
|
|
Class B
common stock, $ 0.0001 par value, 10,000 shares authorized,
8,000
|
|
|
issued and outstanding
|
-
|
-
|
|
|
|
Capital
in excess of par value
|
9,614,748
|
9,523,086
|
Accumulated deficit
|
(4,782,173)
|
(4,459,387)
|
Accumulated other comprehensive loss
|
(110,453)
|
(114,126)
|
Common
stock held in treasury, at cost, 9,163,920 and 6,756,748 shares,
respectively
|
(1,079,063)
|
(682,562)
|
Total
stockholders' equity
|
3,686,168
|
4,310,448
|
Noncontrolling
interests
|
552,596
|
649,464
|
Total equity
|
4,238,764
|
4,959,912
|
Total liabilities and equity
|
$
32,257,638
|
$
31,103,578
|
|
|
|
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,
|
|
2017
|
2016
|
|
2017
|
2016
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
Minimum
rent
|
$
485,253
|
$ 472,245
|
|
$
1,868,613
|
$
1,823,674
|
Overage
rent
|
60,533
|
59,047
|
|
210,909
|
200,638
|
Tenant
reimbursements
|
216,759
|
216,160
|
|
860,778
|
862,155
|
Other
income
|
80,225
|
68,739
|
|
290,515
|
237,782
|
Total
revenue
|
842,770
|
816,191
|
|
3,230,815
|
3,124,249
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
Property
operating
|
141,584
|
136,284
|
|
551,885
|
538,002
|
Depreciation and
amortization
|
170,402
|
154,045
|
|
640,286
|
588,666
|
Real estate
taxes
|
60,419
|
58,126
|
|
245,646
|
239,917
|
Repairs and
maintenance
|
21,797
|
20,350
|
|
81,309
|
76,380
|
Advertising and
promotion
|
22,609
|
26,766
|
|
86,480
|
88,956
|
(Recovery of)
provision for credit losses
|
(984)
|
2,162
|
|
6,645
|
7,603
|
Other
|
50,477
|
49,786
|
|
184,037
|
183,435
|
Total operating
expenses
|
466,304
|
447,519
|
|
1,796,288
|
1,722,959
|
|
|
|
|
|
|
OPERATING
INCOME
|
376,466
|
368,672
|
|
1,434,527
|
1,401,290
|
|
|
|
|
|
|
Interest
expense
|
(154,669)
|
(141,473)
|
|
(593,062)
|
(585,958)
|
(Loss) gain on sale
or disposal of assets and interests in unconsolidated
entities
|
(2,239)
|
-
|
|
(2,239)
|
101,051
|
|
|
|
|
|
|
NET
INCOME
|
$
219,558
|
$ 227,199
|
|
$
839,226
|
$ 916,383
|
|
|
|
|
|
|
Third-Party
Investors' Share of Net Income
|
$
110,001
|
$ 115,353
|
|
$
424,533
|
$ 452,844
|
|
|
|
|
|
|
Our Share of Net
Income
|
109,557
|
111,846
|
|
414,693
|
463,539
|
Amortization of
Excess Investment (A)
|
(21,760)
|
(23,542)
|
|
(89,804)
|
(94,213)
|
Our Share of Loss
(Gain) on Sale or Disposal of Assets and Interests
in
|
|
|
|
|
|
Unconsolidated
Entities, net
|
1,342
|
-
|
|
1,342
|
(22,636)
|
Our Share of Gain
on Sale or Disposal of Assets and
Interests
|
|
|
|
|
|
Included in Other
Income in the Consolidated Financial Statements
|
-
|
-
|
|
-
|
(36,153)
|
Income from
Unconsolidated Entities (B)
|
$
89,139
|
$ 88,304
|
|
$
326,231
|
$ 310,537
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The above
financial presentation does not include any information related to
our investments in Klépierre S.A.
|
("Klépierre") and HBS Global Properties ("HBS"). For additional
information, see footnote B.
|
Simon Property
Group, Inc.
|
Unaudited Joint
Venture Combined Balance Sheets
|
(Dollars in
thousands)
|
|
|
|
|
|
December
31,
|
December
31,
|
|
2017
|
2016
|
Assets:
|
|
|
Investment
properties, at cost
|
$
18,328,747
|
$
17,549,078
|
Less - accumulated
depreciation
|
6,371,363
|
5,892,960
|
|
11,957,384
|
11,656,118
|
Cash and cash
equivalents
|
956,084
|
778,455
|
Tenant receivables
and accrued revenue, net
|
403,125
|
348,139
|
Deferred costs and
other assets
|
355,585
|
351,098
|
Total
assets
|
$
13,672,178
|
$
13,133,810
|
|
|
|
Liabilities and
Partners' Deficit:
|
|
|
Mortgages
|
$
14,784,310
|
$
14,237,576
|
Accounts payable,
accrued expenses, intangibles, and deferred revenue
|
1,033,674
|
867,003
|
Other
liabilities
|
365,857
|
325,078
|
Total
liabilities
|
16,183,841
|
15,429,657
|
|
|
|
Preferred
units
|
67,450
|
67,450
|
Partners'
deficit
|
(2,579,113)
|
(2,363,297)
|
Total liabilities and
partners' deficit
|
$
13,672,178
|
$
13,133,810
|
|
|
|
Our Share
of:
|
|
|
Partners'
deficit
|
$
(1,144,620)
|
$
(1,018,755)
|
Add: Excess
Investment (A)
|
1,733,063
|
1,791,691
|
Our net Investment in
unconsolidated entities, at equity
|
$
588,443
|
$ 772,936
|
|
|
|
Note: The above
financial presentation does not include any information related to
our investments in Klépierre and
|
HBS Global Properties. For additional information, see footnote
B.
|
|
|
|
Simon Property
Group, Inc.
|
Unaudited
Reconciliation of Non-GAAP Financial Measures (C)
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Consolidated Net Income to FFO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Income (D)
|
|
$
659,821
|
|
$
455,602
|
|
$
2,244,903
|
|
$
2,134,706
|
Adjustments to
Arrive at FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from consolidated
|
|
|
|
|
|
|
|
|
properties
|
|
|
321,397
|
|
330,708
|
|
1,260,865
|
|
1,236,476
|
|
Our share of
depreciation and amortization from
|
|
|
|
|
|
|
|
|
unconsolidated entities,
including Klépierre and HBS
|
139,026
|
|
140,046
|
|
540,718
|
|
527,976
|
|
Loss (gain) upon
acquisition of controlling interests and sale or
disposal
|
|
|
|
|
|
|
|
|
of assets and interests in
unconsolidated entities, net (E)
|
1,342
|
|
(8,094)
|
|
(3,647)
|
|
(80,154)
|
|
Net income
attributable to noncontrolling interest holders in
|
|
|
|
|
|
|
|
|
properties
|
|
|
(734)
|
|
(563)
|
|
(13)
|
|
(7,218)
|
|
Noncontrolling
interests portion of depreciation and amortization
|
(4,248)
|
|
(4,159)
|
|
(17,069)
|
|
(13,583)
|
|
Preferred
distributions and dividends
|
(1,313)
|
|
(1,313)
|
|
(5,252)
|
|
(5,252)
|
FFO of the
Operating Partnership (G)
|
$
1,115,291
|
|
$
912,227
|
|
$
4,020,505
|
|
$
3,792,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share to diluted FFO per share reconciliation:
|
|
|
|
|
|
|
|
Diluted net income
per share
|
|
$
1.84
|
|
$
1.26
|
|
$
6.24
|
|
$
5.87
|
|
Depreciation and
amortization from consolidated properties
|
|
|
|
|
|
|
|
|
and our share of
depreciation and amortization from unconsolidated
|
|
|
|
|
|
|
|
|
entities, including
Klépierre and HBS, net of noncontrolling
|
|
|
|
|
|
|
|
|
interests portion of
depreciation and amortization
|
1.28
|
|
1.29
|
|
4.98
|
|
4.84
|
|
Gain upon acquisition
of controlling interests and sale or disposal
|
|
|
|
|
|
|
|
|
of assets and interests in
unconsolidated entities, net (F)
|
-
|
|
(0.02)
|
|
(0.01)
|
|
(0.22)
|
Diluted FFO per
share (H)
|
|
$
3.12
|
|
$
2.53
|
|
$
11.21
|
|
$
10.49
|
|
|
|
|
|
|
|
|
|
|
|
|
Details for per share
calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO of the Operating
Partnership (G)
|
$
1,115,291
|
|
$
912,227
|
|
$
4,020,505
|
|
$
3,792,951
|
Diluted FFO allocable
to unitholders
|
(146,935)
|
|
(119,780)
|
|
(529,595)
|
|
(512,361)
|
Diluted FFO allocable
to common stockholders (I)
|
$
968,356
|
|
$
792,447
|
|
$
3,490,910
|
|
$
3,280,590
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares outstanding
|
310,856
|
|
313,685
|
|
311,517
|
|
312,691
|
Weighted average
limited partnership units outstanding
|
47,169
|
|
47,502
|
|
47,260
|
|
48,836
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares and units outstanding
|
358,025
|
|
361,187
|
|
358,777
|
|
361,527
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted FFO
per Share (H)
|
$
3.12
|
|
$
2.53
|
|
$
11.21
|
|
$
10.49
|
Percent Change
|
|
|
23.3%
|
|
|
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
properties.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B)
|
The Unaudited Joint
Venture Combined Statements of Operations do not include any
operations or our share of net income or excess investment
amortization related to our investments in Klépierre and HBS Global
Properties. Amounts included in Footnotes D below exclude our
share of related activity for our investments in Klépierre and HBS
Global Properties. 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,
comparable FFO per share and comparable EPS. 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"). 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 sales or disposals of, or any impairment
charges related to, previously depreciated 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We have adopted
NAREIT's clarification of the definition of FFO that requires it to
include the effects of nonrecurring items not classified as
extraordinary, cumulative effect of accounting changes, or a gain
or loss resulting from the sale or disposal of, or any impairment
charges relating to, previously depreciated retail operating
properties. We include in FFO gains and losses realized from the
sale of land, outlot buildings, marketable and non-marketable
securities, and investment holdings of non-retail real estate.
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Gains on land sales
of $2.2 million and $8.8 million for the three months ended
December 31, 2017 and 2016, respectively, and $12.3 million and
$14.0 million for the twelve months ended December 31, 2017 and
2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Straight-line
adjustments increased income by $7.4 million and $12.5 million for
the three months ended December 31, 2017 and 2016, respectively,
and $34.5 million and $56.8 million for the twelve months ended
December 31, 2017 and 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Amortization of fair
market value of leases from acquisitions increased income by $1.4
million and $2.3 million for the three months ended December 31,
2017 and 2016, respectively, and $6.0 million and $9.6 million for
the twelve months ended December 31, 2017 and 2016,
respectively.
|
|
|
|
|
-
|
Debt premium
amortization of $0.0 million and $5.1 million for the three months
ended December 31, 2017 and 2016, respectively, and $0.2 million
and $19.0 million for the twelve months ended December 31, 2017 and
2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(E)
|
Gain upon acquisition
of controlling interests and sale or disposal of assets and
interests in unconsolidated entities for the three and twelve
months ended December 31, 2016 was $8.1 million and $84.6 million,
respectively. Noncontrolling interest portion of the gain for the
three and twelve months ended December 31, 2016 was $0.0 million
and $4.4 million, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(F)
|
Includes
noncontrolling interests gain upon acquisition of controlling
interests and sale or disposal of assets and interests in
unconsolidated entities of $0.01 per share for the twelve months
ended December 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(G)
|
Includes a loss on
the extinguishment of debt of $128.6 million for the twelve months
ended December 31, 2017. Includes a loss on the extinguishment of
debt of $136.8 million for the three and twelve months ended
December 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(H)
|
Includes Basic and
Diluted FFO per share related to a loss on the extinguishment of
debt of $0.36 for the twelve months ended December 31, 2017.
Includes Basic and Diluted FFO per share related to a loss on the
extinguishment of debt of $0.38 for the three and twelve months
ended December 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(I)
|
Includes Diluted FFO
allocable to common stockholders related to a loss on the
extinguishment of debt of $111.7 million for the twelve months
ended December 31, 2017. Includes Diluted FFO allocable to common
stockholders related to a loss on the extinguishment of debt of
$118.3 million for the three and twelve months ended December 31,
2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(J)
|
Reconciliation of
reported earnings per share to comparable earnings per share and
FFO per share to comparable FFO per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE
MONTHS
|
|
TWELVE
MONTHS
|
|
|
|
|
|
|
ENDED
|
|
ENDED
|
|
|
|
|
|
|
DECEMBER
31,
|
|
DECEMBER
31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
Reported earnings per
share
|
|
$
1.84
|
|
$
1.26
|
|
$
6.24
|
|
$
5.87
|
|
|
Add: Loss on extinguishment of debt
|
|
-
|
|
0.38
|
|
0.36
|
|
0.38
|
|
|
Comparable earnings
per share
|
|
$
1.84
|
|
$
1.64
|
|
$
6.60
|
|
$
6.25
|
|
|
Comparable earnings
per share growth
|
|
12.2%
|
|
|
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE
MONTHS
|
|
TWELVE
MONTHS
|
|
|
|
|
|
|
ENDED
|
|
ENDED
|
|
|
|
|
|
|
DECEMBER
31,
|
|
DECEMBER
31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
Reported FFO per
share
|
|
|
$
3.12
|
|
$
2.53
|
|
$
11.21
|
|
$
10.49
|
|
|
Add: Loss on extinguishment of debt
|
|
-
|
|
0.38
|
|
0.36
|
|
0.38
|
|
|
Comparable FFO per
share
|
|
$
3.12
|
|
$
2.91
|
|
$
11.57
|
|
$
10.87
|
|
|
Comparable FFO per
share growth
|
|
7.2%
|
|
|
|
6.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Simon