INDIANAPOLIS, Aug. 10, 2020 /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 June
30, 2020.
"We continue to navigate through the challenging times presented
by the pandemic with a commitment to the safety of our employees,
shoppers, retailers and the communities we serve," said
David Simon, Chairman, Chief
Executive Officer and President. "Despite losing nearly
10,500 shopping days in our U.S. portfolio in the second quarter,
we produced solid profitability and positive cash flow from
operations. We have generally been encouraged by the shopper
response, particularly in certain locations, after
re-opening. These trends reinforce that our portfolio is an
attractive destination for consumers. We remain committed to
supporting our thousands of local and regional small businesses and
restaurant entrepreneurs by granting rent abatements for the period
they were closed. Our Company is well-positioned through a
combination of deep brand relationships, the best portfolio with a
strong mix of geographic locations and product types and a strong
balance sheet, to continue our leadership position in the retail
real estate industry."
Results for the Quarter
- Net income attributable to common stockholders was $254.2 million, or $0.83 per diluted share, as compared to
$495.3 million, or $1.60 per diluted share in 2019.
- Funds From Operations ("FFO") was $746.5
million, or $2.12 per diluted
share, as compared to $1.064 billion,
or $2.99 per diluted share, in the
prior year period. The Company's domestic and international
operations were negatively impacted by approximately $1.13 per diluted share primarily due to reduced
lease income and ancillary property revenues as a result of the
COVID-19 pandemic, partially offset by approximately $0.36 per diluted share from cost reduction
initiatives.
- Comparable property Net Operating Income ("NOI") for the three
months ended June 30, 2020 declined
18.5% and portfolio NOI declined 21.0%.
Results for the Six Months
- Net income attributable to common stockholders was $691.8 million, or $2.26 per diluted share, as compared to
$1.044 billion, or $3.38 per diluted share in 2019. Results
for the six months ended 2019 included a combined $83.6 million, or $0.24 per diluted share, of proceeds from an
insurance settlement and a gain on the sale of our interest in a
multi-family residential
property.
- FFO was $1.727 billion, or
$4.90 per diluted share, as compared
to $2.146 billion, or $6.04 per diluted share, in the prior year
period. FFO for the six months ended June 30, 2020 declined $0.79 per diluted share due to $0.02 per diluted share in the first quarter and
$0.77 per diluted share negative
impact in the second quarter to the Company's domestic and
international operations as a result of the COVID-19 pandemic. The
six months ended 2019 also included the $0.24 per diluted share noted above.
- Comparable property NOI for the six months ended June 30, 2020 declined 9.3% and portfolio NOI
declined 10.7%.
U.S. Malls and Premium Outlets Operating Statistics
- Occupancy was 92.9% at June 30,
2020.
- Base minimum rent per square foot was $56.02 at June 30,
2020, an increase of 2.8% year-over-year.
- Leasing spread per square foot for the trailing 12 months ended
June 30, 2020 was flat.
COVID-19 Business Update
On March 18, 2020, after extensive discussions with
federal, state and local officials and in recognition of the need
to address the spread of COVID-19, the Company closed all of its
retail properties in the United States. Our properties
reopened, when permitted to do so under applicable governmental
orders, beginning May 1. All of the Company's retail
properties were reopened as of July
10. Seven retail properties in California were subsequently closed on
July 15, and remain closed, due to a
new restrictive governmental order. The Company's retail
properties were closed, in aggregate, for approximately 10,500
shopping days during the second quarter.
As of August 7, 91% of the tenants
across the Company's U.S. retail properties were open and
operating. More than half of the remaining unopened tenants
are closed because of restrictive governmental orders limiting or
prohibiting their operations.
The Company has collected from its U.S. retail portfolio,
including some level of rent deferrals, approximately 51% of its
contractual rent billed for April and May combined, approximately
69% for June and approximately 73% for July with only de
minimis deferrals. These percentages have not been
adjusted for any rent abatements granted.
Development Activity
On June
19, 2020, Siam Premium Outlets Bangkok (Bangkok, Thailand) opened with 264,000 square
feet of high-quality, name brand stores. Siam Premium Outlets
Bangkok is the first Premium Outlet® Center in Thailand. Simon owns a 50% interest in this
center.
During the quarter, the 178,000 square-foot phase IV expansion
of Gotemba Premium Outlets (Gotemba City, (Tokyo) Japan)
opened adding enhanced amenities, elevated food offerings and more
than 80 new, exciting brands, including many opening their first
outlet store in Japan. Simon owns 40% of this center.
Construction continues on certain redevelopment and new
development projects in the U.S. and internationally that are
nearing completion. Simon's share of the remaining required
cash funding for these projects, that are currently scheduled to be
completed in 2020 or 2021, is approximately $140 million.
Capital Markets and Balance Sheet Liquidity
As of
June 30, 2020, Simon had
approximately $8.5 billion of
liquidity consisting of $3.6 billion
of cash on hand, including its share of joint venture cash, and
$4.9 billion of available capacity
under its revolving credit facilities and term loan, net of
$702 million outstanding under its
U.S. commercial paper program.
Subsequent to the end of the quarter, the Company completed a
three tranche senior notes offering totaling $2.0 billion. Two tranches totaling
$1.5 billion were new issues of
senior notes with a weighted average term of 20 years and a
weighted average coupon rate of 3.23%. The third tranche of
$500 million was issued as additional
notes under an indenture pursuant to which Simon Property Group,
L.P. previously issued 3.50% notes due September 2025.
In July, the Company used a combination of proceeds from the
offering and cash on hand to repay $2.5
billion outstanding under its Credit Facilities.
Dividends
The Company paid its second quarter 2020
common stock dividend of $1.30 per
share, in cash, on July 24,
2020. Simon's Board of Directors will declare a common stock
dividend for the third quarter on or before September 30, 2020. The Company expects to
pay at least $6.00 per share in
common stock dividends for 2020, in cash, subject to the Board of
Directors' approval.
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 September 30, 2020 to
shareholders of record on September
16, 2020.
Conference Call
Simon will hold a conference call to
discuss the quarterly financial results today at 5:00 p.m. Eastern Time, Monday, August 10, 2020. 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 17,
2020. To access the audio replay, dial 1-855-859-2056
(international 404-537-3406) passcode 2558073.
Supplemental Materials and Website
Supplemental
information on our second quarter 2020 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, comparable property Net Operating
Income growth and portfolio 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: uncertainties regarding the impact of the COVID-19
pandemic and governmental restrictions intended to prevent its
spread on our tenants' businesses, financial condition, results of
operations, cash flow and liquidity and our ability to access the
capital markets, satisfy our debt service obligations and make
distributions to our stockholders; the inability to collect rent
due to the bankruptcy or insolvency of tenants or otherwise;
changes in economic and market conditions that may adversely affect
the general retail environment; the intensely competitive market
environment in the retail industry; changes to applicable laws or
regulations or the interpretation thereof; risks associated with
the acquisition, development, redevelopment, expansion, leasing and
management of properties; the inability to lease newly developed
properties and renew leases and relet space at existing properties
on favorable terms; the potential loss of anchor stores or major
tenants; decreases in market rental rates; 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; general risks related to real estate investments,
including the illiquidity of real estate investments; security
breaches that could compromise our information technology or
infrastructure; risks relating to our joint venture properties; our
continued ability to maintain our status as a REIT; changes in tax
laws or regulations that result in adverse tax consequences;
changes in the value of our investments in foreign entities; our
ability to hedge interest rate and currency risk; changes in
insurance costs; the availability of comprehensive insurance
coverage; natural disasters; the potential for terrorist
activities; environmental liabilities; the loss of key management
personnel; and the transition of LIBOR to an alternative reference
rate. 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 Six
Months
|
|
Ended June
30,
|
|
Ended June
30,
|
|
2020
|
2019
|
|
2020
|
2019
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
Lease
income
|
$
1,013,510
|
$
1,298,567
|
|
$
2,275,742
|
$
2,578,623
|
Management fees and
other revenues
|
21,035
|
28,248
|
|
50,201
|
55,792
|
Other
income
|
27,496
|
70,371
|
|
89,458
|
215,604
|
Total
revenue
|
1,062,041
|
1,397,186
|
|
2,415,401
|
2,850,019
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
Property
operating
|
70,620
|
106,119
|
|
176,243
|
217,669
|
Depreciation and
amortization
|
324,140
|
352,606
|
|
652,402
|
681,249
|
Real estate
taxes
|
117,221
|
115,914
|
|
234,764
|
231,372
|
Repairs and
maintenance
|
14,080
|
21,850
|
|
38,511
|
49,772
|
Advertising and
promotion
|
12,689
|
35,420
|
|
46,216
|
72,545
|
Home and regional
office costs
|
36,090
|
46,467
|
|
90,460
|
99,027
|
General and
administrative
|
7,296
|
10,359
|
|
14,190
|
19,496
|
Other
|
29,037
|
27,820
|
|
56,878
|
53,236
|
Total operating
expenses
|
611,173
|
716,555
|
|
1,309,664
|
1,424,366
|
|
|
|
|
|
|
OPERATING INCOME
BEFORE OTHER ITEMS
|
450,868
|
680,631
|
|
1,105,737
|
1,425,653
|
|
|
|
|
|
|
Interest
expense
|
(197,061)
|
(198,425)
|
|
(384,688)
|
(397,160)
|
Income and other tax
benefit (expense)
|
62
|
(7,010)
|
|
5,845
|
(17,112)
|
Income from
unconsolidated entities
|
44,322
|
106,542
|
|
94,787
|
196,986
|
Unrealized gains
(losses) in fair value of equity instruments
|
202
|
(12,317)
|
|
(18,846)
|
(7,000)
|
(Loss) gain on sale
or disposal of, or recovery on, assets and interests in unconsolidated entities and
impairment, net
|
(7,845)
|
2,681
|
|
(6,883)
|
2,681
|
|
|
|
|
|
|
CONSOLIDATED NET
INCOME
|
290,548
|
572,102
|
|
795,952
|
1,204,048
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
35,501
|
75,944
|
|
102,465
|
158,580
|
Preferred
dividends
|
834
|
834
|
|
1,669
|
1,669
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
254,213
|
$ 495,324
|
|
$
691,818
|
$
1,043,799
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
0.83
|
$ 1.60
|
|
$
2.26
|
$ 3.38
|
Simon Property
Group, Inc.
|
Unaudited
Consolidated Balance Sheets
|
(Dollars in
thousands, except share amounts)
|
|
|
|
|
June
30,
|
December
31,
|
|
2020
|
2019
|
ASSETS:
|
|
|
Investment
properties, at cost
|
$
37,972,093
|
$
37,804,495
|
Less - accumulated
depreciation
|
14,389,809
|
13,905,776
|
|
23,582,284
|
23,898,719
|
Cash and cash
equivalents
|
3,306,100
|
669,373
|
Tenant receivables
and accrued revenue, net
|
1,457,695
|
832,151
|
Investment in
unconsolidated entities, at equity
|
2,385,946
|
2,371,053
|
Investment in
Klépierre, at equity
|
1,644,020
|
1,731,649
|
Right-of-use assets,
net
|
517,061
|
514,660
|
Deferred costs and
other assets
|
1,133,064
|
1,214,025
|
Total
assets
|
$
34,026,170
|
$
31,231,630
|
|
|
|
LIABILITIES:
|
|
|
Mortgages and
unsecured indebtedness
|
$
27,268,883
|
$
24,163,230
|
Accounts payable,
accrued expenses, intangibles, and deferred revenues
|
1,216,831
|
1,390,682
|
Cash distributions
and losses in unconsolidated entities, at equity
|
1,576,679
|
1,566,294
|
Dividend
payable
|
458,150
|
-
|
Lease
liabilities
|
519,416
|
516,809
|
Other
liabilities
|
463,380
|
464,304
|
Total
liabilities
|
31,503,339
|
28,101,319
|
|
|
|
Commitments and
contingencies
|
|
|
Limited partners'
preferred interest in the Operating Partnership and
noncontrolling redeemable
interests in properties
|
187,392
|
219,061
|
|
|
|
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
|
42,256
|
42,420
|
|
|
|
Common stock, $
0.0001 par value, 511,990,000 shares authorized, 320,555,104
and 320,435,256 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
|
9,763,059
|
9,756,073
|
Accumulated
deficit
|
(5,703,183)
|
(5,379,952)
|
Accumulated other
comprehensive loss
|
(155,126)
|
(118,604)
|
Common stock held in
treasury, at cost, 14,667,884 and 13,574,296 shares,
respectively
|
(1,917,698)
|
(1,773,571)
|
Total stockholders'
equity
|
2,029,340
|
2,526,398
|
Noncontrolling
interests
|
306,099
|
384,852
|
Total
equity
|
2,335,439
|
2,911,250
|
Total liabilities
and equity
|
$
34,026,170
|
$
31,231,630
|
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,
|
|
2020
|
2019
|
|
2020
|
2019
|
REVENUE:
|
|
|
|
|
|
Lease
income
|
$
574,246
|
$ 760,131
|
|
$
1,318,096
|
$
1,519,110
|
Other
income
|
46,205
|
79,389
|
|
120,718
|
155,311
|
Total
revenue
|
620,451
|
839,520
|
|
1,438,814
|
1,674,421
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
Property
operating
|
107,309
|
140,262
|
|
254,339
|
284,983
|
Depreciation and
amortization
|
165,511
|
170,407
|
|
336,989
|
340,664
|
Real estate
taxes
|
60,634
|
67,809
|
|
129,023
|
136,526
|
Repairs and
maintenance
|
13,589
|
18,832
|
|
33,204
|
41,209
|
Advertising and
promotion
|
10,016
|
19,695
|
|
32,768
|
44,021
|
Other
|
15,734
|
47,743
|
|
65,964
|
97,058
|
Total operating
expenses
|
372,793
|
464,748
|
|
852,287
|
944,461
|
|
|
|
|
|
|
OPERATING INCOME
BEFORE OTHER ITEMS
|
247,658
|
374,772
|
|
586,527
|
729,960
|
|
|
|
|
|
|
Interest
expense
|
(152,409)
|
(157,927)
|
|
(309,050)
|
(313,944)
|
Gain on sale or
disposal of assets and interests in unconsolidated entities,
net
|
-
|
-
|
|
-
|
21,587
|
NET
INCOME
|
$
95,249
|
$ 216,845
|
|
$
277,477
|
$ 437,603
|
|
|
|
|
|
|
Third-Party
Investors' Share of Net Income
|
$
53,989
|
$ 110,620
|
|
$
146,848
|
$ 223,287
|
|
|
|
|
|
|
Our Share of Net
Income
|
41,260
|
106,225
|
|
130,629
|
214,316
|
Amortization of
Excess Investment (A)
|
(20,761)
|
(20,774)
|
|
(41,601)
|
(41,567)
|
Our Share of Gain
on Sale or Disposal of Assets and Interests in
Other Income in
the Consolidated Financial Statements
|
-
|
-
|
|
-
|
(9,155)
|
|
|
|
|
|
|
Income from
Unconsolidated Entities (B)
|
$
20,499
|
$ 85,451
|
|
$
89,028
|
$ 163,594
|
|
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,
|
|
2020
|
2019
|
Assets:
|
|
|
Investment
properties, at cost
|
$
19,670,435
|
$
19,525,665
|
Less - accumulated
depreciation
|
7,641,911
|
7,407,627
|
|
12,028,524
|
12,118,038
|
Cash and cash
equivalents
|
733,224
|
1,015,864
|
Tenant receivables
and accrued revenue, net
|
756,871
|
510,157
|
Right-of-use assets,
net
|
180,952
|
185,302
|
Deferred costs and
other assets
|
368,254
|
384,663
|
Total
assets
|
$
14,067,825
|
$
14,214,024
|
|
|
|
Liabilities and
Partners' Deficit:
|
|
|
Mortgages
|
$
15,436,464
|
$
15,391,781
|
Accounts payable,
accrued expenses, intangibles, and deferred revenue
|
808,425
|
977,112
|
Lease
liabilities
|
183,406
|
186,594
|
Other
liabilities
|
395,429
|
338,412
|
Total
liabilities
|
16,823,724
|
16,893,899
|
|
|
|
Preferred
units
|
67,450
|
67,450
|
Partners'
deficit
|
(2,823,349)
|
(2,747,325)
|
Total liabilities and
partners' deficit
|
$
14,067,825
|
$
14,214,024
|
|
|
|
Our Share
of:
|
|
|
Partners'
deficit
|
$
(1,233,667)
|
$
(1,196,926)
|
Add: Excess
Investment (A)
|
1,488,444
|
1,525,903
|
Our net Investment in
unconsolidated entities, at equity
|
$
254,777
|
$ 328,977
|
|
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,
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Income (D)
|
|
$
290,548
|
|
$
572,102
|
|
$
795,952
|
|
$
1,204,048
|
Adjustments to
Arrive at FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from consolidated properties
|
321,707
|
|
350,045
|
|
647,745
|
|
675,983
|
|
Our share of
depreciation and amortization from unconsolidated entities, including Klépierre and
HBS
|
129,309
|
|
139,271
|
|
266,017
|
|
273,902
|
|
Loss (gain) on sale
or disposal of, or recovery on, assets and interests in unconsolidated entities and
impairment, net
|
7,845
|
|
(2,681)
|
|
6,883
|
|
(2,681)
|
|
Unrealized (gains)
losses in fair value of equity instruments
|
(202)
|
|
12,317
|
|
18,846
|
|
7,000
|
|
Net loss (gain)
attributable to noncontrolling interest holders in
properties
|
3,628
|
|
(400)
|
|
3,799
|
|
518
|
|
Noncontrolling
interests portion of depreciation and amortization
|
(5,048)
|
|
(4,935)
|
|
(9,511)
|
|
(9,818)
|
|
Preferred
distributions and dividends
|
(1,313)
|
|
(1,313)
|
|
(2,626)
|
|
(2,626)
|
FFO of the
Operating Partnership
|
$
746,474
|
|
$
1,064,406
|
|
$
1,727,105
|
|
$
2,146,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share to diluted FFO per share reconciliation:
|
|
|
|
|
|
|
|
Diluted net income
per share
|
|
$
0.83
|
|
$
1.60
|
|
$
2.26
|
|
$
3.38
|
|
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
|
|
1.37
|
|
2.57
|
|
2.65
|
|
Loss (gain) on sale
or disposal of, or recovery on, assets and interests in unconsolidated entities and
impairment, net
|
0.02
|
|
(0.01)
|
|
0.02
|
|
(0.01)
|
|
Unrealized (gains)
losses in fair value of equity instruments
|
-
|
|
0.03
|
|
0.05
|
|
0.02
|
Diluted FFO per
share
|
|
$
2.12
|
|
$
2.99
|
|
$
4.90
|
|
$
6.04
|
|
|
|
|
|
|
|
|
|
|
|
|
Details for per share
calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO of the Operating
Partnership
|
|
$
746,474
|
|
$
1,064,406
|
|
$
1,727,105
|
|
$
2,146,326
|
Diluted FFO allocable
to unitholders
|
(98,537)
|
|
(140,077)
|
|
(228,166)
|
|
(282,396)
|
Diluted FFO allocable
to common stockholders
|
$
647,937
|
|
$
924,329
|
|
$
1,498,939
|
|
$
1,863,930
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares outstanding
|
305,882
|
|
308,709
|
|
306,193
|
|
308,843
|
Weighted average
limited partnership units outstanding
|
46,528
|
|
46,783
|
|
46,608
|
|
46,791
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares and units outstanding
|
352,410
|
|
355,492
|
|
352,801
|
|
355,634
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted FFO
per Share
|
|
$
2.12
|
|
$
2.99
|
|
$
4.90
|
|
$
6.04
|
Percent Change
|
|
|
-29.1%
|
|
|
|
-18.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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 and HBS Global
Properties. Amounts included in Footnote 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 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") 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 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Gains on land sales
of $1.1 million and $7.2 million for the three months ended June
30, 2020 and 2019, respectively, and $6.3 million and $11.6 million
for the six months ended June 30, 2020 and 2019,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Straight-line
adjustments (decreased) increased income by ($2.6) million and
$27.2 million for the three months ended June 30, 2020 and 2019,
respectively, and $9.4 million and $43.8 million for the six months
ended June 30, 2020 and 2019, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Amortization of fair
market value of leases from acquisitions increased income by $1.1
million and $1.4 million for the three months ended June 30, 2020
and 2019, respectively, and $2.4 million and $2.7 million for the
six months ended June 30, 2020 and 2019, respectively.
|
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SOURCE Simon