INDIANAPOLIS, July 30, 2018 /PRNewswire/ -- Simon, a
global leader in premier shopping, dining and entertainment
destinations, today reported results for the quarter ended
June 30, 2018.
Results for the Quarter
- Net income attributable to common stockholders was $547.0 million, or $1.77 per diluted share, as compared to
$382.0 million, or $1.23 per diluted share, in the prior year
period. Results for the second quarter 2017 included a charge of
$0.36 per diluted share related to
the early redemption of certain senior notes of Simon Property
Group, L.P.
- Funds from Operations ("FFO") was $1.061
billion, or $2.98 per diluted
share, as compared to $884.7 million,
or $2.47 per diluted share, in the
prior year period, a 20.6% increase. FFO in the second quarter 2017
includes the aforementioned charge related to the redemption of
certain of our senior notes.
Results for the Six Months
- Net income attributable to common stockholders was $1.168 billion, or $3.77 per diluted share, as compared to
$859.7 million, or $2.75 per diluted share, in the prior year
period. Results for the six months ended 2018 include net gains of
$144.9 million, or $0.41 per diluted share, primarily related to
disposition activity. Results for the six months ended 2017 include
the $0.36 per diluted share charge on
the extinguishment of debt.
- FFO was $2.087 billion, or
$5.85 per diluted share, as compared
to $1.870 billion, or $5.20 per diluted share, in the prior year
period, a 12.5% increase. FFO for the six months ended 2017
includes the aforementioned charge on the extinguishment of
debt.
"This was an excellent quarter for our Company, with strong
financial and operational performance and the successful opening of
our fourth outlet center in Canada," said David
Simon, Chairman and Chief Executive Officer. "Based
upon our results to date and expectations for the remainder of
2018, today, we raised our quarterly dividend and are again
increasing our full-year 2018 guidance."
U.S. Malls and Premium Outlets Operating Statistics
- Reported retailer sales per square foot for the trailing
12-months ended June 30, 2018 was
$646, an increase of 4.6%.
- Occupancy was 94.7% at June 30,
2018.
- Base minimum rent per square foot was $53.84 at June 30,
2018, an increase of 3.3% compared to the prior year
period.
- Leasing spread per square foot for the trailing 12-months ended
June 30, 2018 was $7.32, an increase of 10.7%.
Portfolio Net Operating Income ("NOI") and Comparable
Property NOI
Total portfolio NOI growth for the six months ended June 30, 2018 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 six months ended June 30, 2018 was
2.3%.
Dividends
Today, Simon's Board of Directors declared a quarterly common
stock dividend of $2.00 per
share. This is an 11.1% increase year-over-year. The
dividend will be payable on August 31,
2018 to shareholders of record on August 17, 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 September 28, 2018 to
shareholders of record on September
14, 2018.
Development Activity
On May 2, 2018, Premium Outlet
Collection Edmonton International Airport (Edmonton, Alberta, Canada) opened with 424,000
square feet of high-quality, name brand stores. Simon owns a
50% interest in this center.
Construction continues on four new development projects
including:
- Denver Premium Outlets (Thornton,
Colorado); scheduled to open in September 2018. Simon owns 100% of this
project.
- Queretaro Premium Outlets (Queretaro,
Mexico); scheduled to open in December 2018. Simon owns a 50% interest in this
project.
- Malaga Designer Outlet (Malaga, Spain); scheduled to open in spring 2019.
Simon owns a 46% interest in this project.
- Cannock Designer Outlet (Cannock,
United Kingdom); scheduled to open in spring 2020. Simon
owns a 20% interest in this project.
Construction also continues on significant redevelopment and
expansion projects at other properties including Town Center at
Boca Raton, Toronto Premium
Outlets and Southdale Center (Edina (Minneapolis), MN).
At quarter-end, redevelopment and expansion projects, including
the addition of new anchors, were underway at properties in the
U.S., Canada, Europe and Asia.
During the second quarter, construction started on significant
expansion projects at Vancouver Designer Outlet (Vancouver, British Columbia, Canada) and
Ashford Designer Outlet (Kent, United
Kingdom).
Financing Activity
During the first six months of 2018, the Company closed on eight
mortgage loans totaling approximately $2.4
billion, (U.S. dollar equivalent), of which Simon's share is
approximately $850 million. The
weighted average interest rate and weighted average term on these
loans is 3.98% and 8.9 years, respectively.
As of June 30, 2018, Simon had
more than $7.0 billion of liquidity
consisting of cash on hand, including its share of joint venture
cash, and available capacity under its revolving credit
facilities.
Common Stock Repurchase Program
During the quarter ended June 30,
2018, the Company repurchased 514,659 shares of its common
stock.
2018 Guidance
The Company currently estimates net income to be within a range
of $7.46 to $7.54 per diluted share for the year ending
December 31, 2018 and that FFO will
be within a range of $12.05 to
$12.13 per diluted
share.
The following table provides the reconciliation for the expected
range of estimated net income attributable to common stockholders
per diluted share to estimated FFO per diluted share:
For the year ending
December 31, 2018
|
|
|
|
|
Low
End
|
|
High
End
|
Estimated net income
attributable to common stockholders
per diluted share
|
$7.46
|
|
$7.54
|
Depreciation and
amortization including Simon's share
of unconsolidated
entities
|
5.00
|
|
5.00
|
Gain upon acquisition
of controlling interests, sale or disposal
of, or recovery on,
assets and interests in unconsolidated
entities and impairment,
net
|
(0.41)
|
|
(0.41)
|
Estimated FFO per
diluted share
|
$12.05
|
|
$12.13
|
Conference Call
Simon will hold a conference call to discuss the quarterly
financial results today at 8:30 a.m. Eastern
Time, Monday, July 30,
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
August 6, 2018. To access the
audio replay, dial 1-855-859-2056 (international 404-537-3406)
passcode 5187818.
Supplemental Materials and Website
Supplemental information on our second quarter 2018 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, 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 may 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 may
adversely affect 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 Six
Months
|
|
Ended June
30,
|
|
Ended June
30,
|
|
2018
|
2017
|
|
2018
|
2017
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
Minimum
rent
|
$
857,106
|
$ 851,552
|
|
$1,717,277
|
$1,698,350
|
Overage
rent
|
31,942
|
29,764
|
|
64,932
|
57,967
|
Tenant
reimbursements
|
372,949
|
380,527
|
|
753,312
|
759,442
|
Management fees and
other revenues
|
28,541
|
31,367
|
|
56,722
|
61,914
|
Other
income
|
97,820
|
68,338
|
|
195,929
|
129,638
|
Total
revenue
|
1,388,358
|
1,361,548
|
|
2,788,172
|
2,707,311
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
Property
operating
|
102,951
|
107,371
|
|
216,400
|
211,419
|
Depreciation and
amortization
|
320,198
|
322,396
|
|
637,134
|
633,228
|
Real estate
taxes
|
111,449
|
113,415
|
|
225,635
|
220,073
|
Repairs and
maintenance
|
22,191
|
21,700
|
|
49,875
|
47,301
|
Advertising and
promotion
|
36,491
|
36,496
|
|
71,291
|
72,444
|
Provision for credit
losses
|
3,299
|
2,659
|
|
8,931
|
7,870
|
Home and regional
office costs
|
32,316
|
36,476
|
|
73,380
|
79,455
|
General and
administrative
|
10,913
|
13,074
|
|
23,542
|
27,075
|
Other
|
10,875
|
21,812
|
|
42,377
|
45,627
|
Total operating
expenses
|
650,683
|
675,399
|
|
1,348,565
|
1,344,492
|
|
|
|
|
|
|
OPERATING
INCOME
|
737,675
|
686,149
|
|
1,439,607
|
1,362,819
|
|
|
|
|
|
|
Interest
expense
|
(206,624)
|
(207,174)
|
|
(412,115)
|
(405,373)
|
Loss on
extinguishment of debt
|
-
|
(128,618)
|
|
-
|
(128,618)
|
Income and other
taxes
|
(10,137)
|
(5,990)
|
|
(16,357)
|
(2,470)
|
Income from
unconsolidated entities
|
100,828
|
92,017
|
|
190,854
|
161,101
|
Gain upon acquisition
of controlling interests, sale or disposal of, or recovery
on,
|
|
|
|
|
|
assets and
interests in unconsolidated entities and impairment, net
|
9,672
|
4,989
|
|
144,949
|
4,989
|
|
|
|
|
|
|
CONSOLIDATED NET
INCOME
|
631,414
|
441,373
|
|
1,346,938
|
992,448
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
83,576
|
58,549
|
|
177,611
|
131,053
|
Preferred
dividends
|
834
|
834
|
|
1,669
|
1,669
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
547,004
|
$ 381,990
|
|
$
1,167,658
|
$ 859,726
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
1.77
|
$ 1.23
|
|
$
3.77
|
$ 2.75
|
Simon Property
Group, Inc.
Unaudited Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
|
|
|
|
|
|
|
|
June
30,
|
December
31,
|
|
2018
|
2017
|
ASSETS:
|
|
|
Investment
properties, at cost
|
$
36,429,603
|
$
36,393,464
|
Less - accumulated
depreciation
|
12,354,966
|
11,935,949
|
|
24,074,637
|
24,457,515
|
Cash and cash
equivalents
|
714,247
|
1,482,309
|
Tenant receivables
and accrued revenue, net
|
681,551
|
742,672
|
Investment in
unconsolidated entities, at equity
|
2,302,833
|
2,266,483
|
Investment in
Klépierre, at equity
|
1,772,155
|
1,934,676
|
Deferred costs and
other assets
|
1,297,717
|
1,373,983
|
Total
assets
|
$
30,843,140
|
$
32,257,638
|
|
|
|
LIABILITIES:
|
|
|
Mortgages and
unsecured indebtedness
|
$
23,505,002
|
$
24,632,463
|
Accounts payable,
accrued expenses, intangibles, and deferred revenues
|
1,230,775
|
1,269,190
|
Cash distributions
and losses in unconsolidated entities, at equity
|
1,531,136
|
1,406,378
|
Other
liabilities
|
499,598
|
520,363
|
Total
liabilities
|
26,766,511
|
27,828,394
|
|
|
|
Commitments and
contingencies
|
|
|
Limited partners'
preferred interest in the Operating Partnership and
noncontrolling
|
|
|
redeemable interests in properties
|
198,001
|
190,480
|
|
|
|
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
|
42,912
|
43,077
|
|
|
|
Common stock, $
0.0001 par value, 511,990,000 shares authorized, 320,324,839
and
|
|
|
320,322,774
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
|
9,657,810
|
9,614,748
|
Accumulated
deficit
|
(4,833,826)
|
(4,782,173)
|
Accumulated other
comprehensive loss
|
(115,285)
|
(110,453)
|
Common stock held in
treasury, at cost, 11,115,156 and 9,163,920 shares,
respectively
|
(1,380,619)
|
(1,079,063)
|
Total
stockholders' equity
|
3,371,024
|
3,686,168
|
Noncontrolling
interests
|
507,604
|
552,596
|
Total
equity
|
3,878,628
|
4,238,764
|
Total
liabilities and equity
|
$
30,843,140
|
$
32,257,638
|
Simon Property
Group, Inc. Unaudited Joint Venture Combined Statements
of Operations
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
2018
|
2017
|
|
2018
|
2017
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
Minimum
rent
|
$
483,976
|
$ 465,705
|
|
$
959,931
|
$ 916,760
|
Overage
rent
|
51,067
|
46,447
|
|
110,728
|
97,816
|
Tenant
reimbursements
|
220,426
|
212,465
|
|
443,916
|
428,246
|
Other
income
|
78,378
|
71,753
|
|
159,487
|
136,079
|
Total
revenue
|
833,847
|
796,370
|
|
1,674,062
|
1,578,901
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
Property
operating
|
139,553
|
132,028
|
|
285,845
|
265,013
|
Depreciation and
amortization
|
166,299
|
159,748
|
|
326,134
|
313,202
|
Real estate
taxes
|
68,576
|
63,977
|
|
136,843
|
130,560
|
Repairs and
maintenance
|
20,736
|
20,471
|
|
43,933
|
40,701
|
Advertising and
promotion
|
20,884
|
21,836
|
|
45,108
|
44,034
|
Provision for credit
losses
|
5,577
|
2,789
|
|
12,078
|
6,566
|
Other
|
49,885
|
45,030
|
|
99,617
|
88,384
|
Total operating
expenses
|
471,510
|
445,879
|
|
949,558
|
888,460
|
|
|
|
|
|
|
OPERATING
INCOME
|
362,337
|
350,491
|
|
724,504
|
690,441
|
|
|
|
|
|
|
Interest
expense
|
(190,751)
|
(146,440)
|
|
(341,684)
|
(288,647)
|
Gain on sale or
disposal of, or recovery on, assets and interests in unconsolidated
entities, net
|
25,792
|
-
|
|
25,792
|
-
|
|
|
|
|
|
|
NET
INCOME
|
$
197,378
|
$ 204,051
|
|
$
408,612
|
$ 401,794
|
|
|
|
|
|
|
Third-Party
Investors' Share of Net Income
|
$
96,240
|
$ 104,265
|
|
$
202,424
|
$ 203,950
|
|
|
|
|
|
|
Our Share of Net
Income
|
101,138
|
99,786
|
|
206,188
|
197,844
|
Amortization of
Excess Investment (A)
|
(21,395)
|
(22,979)
|
|
(42,921)
|
(45,436)
|
Our Share of Gain
on Sale or Disposal of, or Recovery on, Assets and Interests
in
|
|
|
|
|
|
Unconsolidated Entities, net
|
(9,672)
|
-
|
|
(9,672)
|
-
|
|
|
|
|
|
|
Income from
Unconsolidated Entities (B)
|
$
70,071
|
$ 76,807
|
|
$
153,595
|
$ 152,408
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
December
31,
|
|
2018
|
2017
|
Assets:
|
|
|
Investment
properties, at cost
|
$
18,580,295
|
$
18,328,747
|
Less - accumulated
depreciation
|
6,618,858
|
6,371,363
|
|
11,961,437
|
11,957,384
|
Cash and cash
equivalents
|
970,605
|
956,084
|
Tenant receivables
and accrued revenue, net
|
386,980
|
403,125
|
Deferred costs and
other assets
|
389,710
|
355,585
|
Total
assets
|
$
13,708,732
|
$
13,672,178
|
|
|
|
Liabilities and
Partners' Deficit:
|
|
|
Mortgages
|
$
15,252,252
|
$
14,784,310
|
Accounts payable,
accrued expenses, intangibles, and deferred revenue
|
859,475
|
1,033,674
|
Other
liabilities
|
386,151
|
365,857
|
Total
liabilities
|
16,497,878
|
16,183,841
|
|
|
|
Preferred
units
|
67,450
|
67,450
|
Partners'
deficit
|
(2,856,596)
|
(2,579,113)
|
Total liabilities and
partners' deficit
|
$
13,708,732
|
$
13,672,178
|
|
|
|
Our Share
of:
|
|
|
Partners'
deficit
|
$
(1,240,838)
|
$
(1,144,620)
|
Add: Excess
Investment (A)
|
1,693,800
|
1,733,063
|
Our net Investment in
unconsolidated entities, at equity
|
$
452,962
|
$ 588,443
|
|
|
|
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 Six Months
Ended
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Income (D)
|
|
$
631,414
|
|
$
441,373
|
|
$
1,346,938
|
|
$
992,448
|
Adjustments to
Arrive at FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from consolidated
|
|
|
|
|
|
|
|
|
properties
|
|
|
317,364
|
|
318,585
|
|
631,370
|
|
626,273
|
|
Our share of
depreciation and amortization from
|
|
|
|
|
|
|
|
|
unconsolidated entities,
including Klépierre and HBS
|
137,279
|
|
135,476
|
|
272,204
|
|
266,694
|
|
Gain upon acquisition
of controlling interests, sale or disposal of, or recovery
on,
|
|
|
|
|
|
|
|
|
assets and interests
in unconsolidated entities and impairment, net
|
(9,672)
|
|
(4,989)
|
|
(144,949)
|
|
(4,989)
|
|
Unrealized change in
fair value of equity instruments
|
(9,692)
|
|
-
|
|
(6,664)
|
|
-
|
|
Net (income) loss
attributable to noncontrolling interest holders in
|
|
|
|
|
|
|
|
|
properties
|
|
|
(279)
|
|
(74)
|
|
(186)
|
|
170
|
|
Noncontrolling
interests portion of depreciation and amortization
|
(4,537)
|
|
(4,315)
|
|
(9,185)
|
|
(8,215)
|
|
Preferred
distributions and dividends
|
(1,313)
|
|
(1,313)
|
|
(2,626)
|
|
(2,626)
|
FFO of the
Operating Partnership (E)
|
$
1,060,564
|
|
$
884,743
|
|
$
2,086,902
|
|
$
1,869,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share to diluted FFO per share reconciliation:
|
|
|
|
|
|
|
|
Diluted net income
per share
|
|
$
1.77
|
|
$
1.23
|
|
$
3.77
|
|
$
2.75
|
|
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
|
1.27
|
|
1.25
|
|
2.51
|
|
2.46
|
|
Gain upon acquisition
of controlling interests, sale or disposal of, or recovery
on,
|
|
|
|
|
|
|
|
|
assets and interests
in unconsolidated entities and impairment, net
|
(0.03)
|
|
(0.01)
|
|
(0.41)
|
|
(0.01)
|
|
Unrealized change in
fair value of equity instruments
|
(0.03)
|
|
-
|
|
(0.02)
|
|
-
|
Diluted FFO per
share (F)
|
|
$
2.98
|
|
$
2.47
|
|
$
5.85
|
|
$
5.20
|
|
|
|
|
|
|
|
|
|
|
|
|
Details for per share
calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO of the Operating
Partnership (E)
|
$
1,060,564
|
|
$
884,743
|
|
$
2,086,902
|
|
$
1,869,755
|
Diluted FFO allocable
to unitholders
|
(139,426)
|
|
(116,599)
|
|
(273,985)
|
|
(246,028)
|
Diluted FFO allocable
to common stockholders (G)
|
$
921,138
|
|
$
768,144
|
|
$
1,812,917
|
|
$
1,623,727
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares outstanding
|
309,355
|
|
311,579
|
|
309,966
|
|
312,191
|
Weighted average
limited partnership units outstanding
|
46,827
|
|
47,287
|
|
46,845
|
|
47,304
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares and units outstanding
|
356,182
|
|
358,866
|
|
356,811
|
|
359,495
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted FFO
per Share (F)
|
$
2.98
|
|
$
2.47
|
|
$
5.85
|
|
$
5.20
|
Percent Change
|
|
|
20.6%
|
|
|
|
12.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-Q.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C)
|
This report contains
measures of financial or operating performance that are not
specifically defined by GAAP, including FFO and 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"). 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, 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, disposal or property insurance
recoveries of, or any impairment relating to, previously
depreciated retail operating properties. We include in FFO gains
and losses realized from the sale of land, outlot buildings, equity
instruments, 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 $1.4 million and $5.0 million for the three months ended June
30, 2018 and 2017, respectively, and $2.7 million and $7.7 million
for the six months ended June 30, 2018 and 2017,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Straight-line
adjustments increased income by $6.4 million and $5.1 million for
the three months ended June 30, 2018 and 2017, respectively, and
$15.0 million and $15.3 million for the six months ended June 30,
2018 and 2017, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Amortization of fair
market value of leases from acquisitions increased income by $1.0
million and $1.5 million for the three months ended June 30, 2018
and 2017, respectively, and $2.4 million and $3.2 million for the
six months ended June 30, 2018 and 2017,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(E)
|
Includes a loss on
the extinguishment of debt of $128.6 million for the three and six
months ended June 30, 2017.
|
|
|
(F)
|
Includes Basic and
Diluted FFO per share related to a loss on the extinguishment of
debt of $0.36 for the three and six months ended June 30,
2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(G)
|
Includes Diluted FFO
allocable to common stockholders related to a loss on the
extinguishment of debt of $111.7 million for the three and six
months ended June 30, 2017.
|
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SOURCE Simon