INDIANAPOLIS, Aug. 2, 2021 /PRNewswire/ -- Simon, a global
leader in the ownership of premier shopping, dining, entertainment
and mixed-use destinations, today reported results for the quarter
ended June 30, 2021.
"I am pleased with the profitability and substantial improvement
in cash flow that were generated in the second quarter," said
David Simon, Chairman, Chief
Executive Officer and President. "We are encouraged by the
increase in our shopper traffic, retailer sales and leasing
activity. Based upon our results to date and expectations for
the remainder of 2021, we are again increasing our full-year 2021
guidance and again raising our quarterly dividend."
Results for the Quarter
- Net income attributable to common stockholders was $617.3 million, or $1.88 per diluted share, as compared to
$254.2 million, or $0.83 per diluted share in 2020. Results for the
second quarter of 2021 include a non-cash gain of $118.4 million, or $0.32 per diluted share, because of the reversal
of a deferred tax liability associated with an international
investment.
- Funds From Operations ("FFO") was $1.217
billion, or $3.24 per diluted
share, as compared to $746.5 million,
or $2.12 per diluted share, in the
prior year period, a 52.8% increase. FFO for the second quarter
2021 includes the $0.32 per diluted
share non-cash gain related to the deferred tax liability reversal,
mentioned above.
- Net operating income ("NOI") from domestic and international
properties, combined, increased 16.6% compared to the prior year
period. Portfolio NOI, which includes NOI from domestic properties,
international properties and NOI from the Company's investment in
Taubman Realty Group ("TRG"), increased 32.5% compared to the prior
year period.
Results for the Six Months
- Net income attributable to common stockholders was $1.063 billion, or $3.24 per diluted share, as compared to
$691.8 million, or $2.26 per diluted share in 2020. Results for the
six months ended 2021 include the aforementioned non-cash gain
related to the deferred tax liability reversal.
- FFO was $2.151 billion, or
$5.72 per diluted share, as compared
to $1.727 billion, or $4.90 per diluted share, in the prior year
period, a 16.7% increase. FFO for the six months ended 2021
includes the aforementioned non-cash gain related to the deferred
tax liability reversal.
- NOI from domestic and international properties, combined,
increased 2.8% compared to the prior year period. Portfolio NOI
increased 16.7% compared to the prior year period.
U.S. Malls and Premium Outlets Operating Statistics
- Occupancy was 91.8% at June 30,
2021.
- Base minimum rent per square foot was $55.03 at June 30,
2021.
Development Activity
West Midlands Designer Outlet in England opened on April
12, 2021. The center includes 197,000 square feet of
high-quality, name brand stores. Simon owns a 23% interest in
this center.
During the quarter, construction restarted on Paris-Giverny
Designer Outlet, a new 222,000 square foot upscale outlet center
located in Normandie, France,
projected to open in the first quarter of 2023. Simon owns
74% of this project.
Construction continues on redevelopments including Burlington
Mall (Boston, MA) and Tacoma Mall
(Tacoma, WA). These
redevelopments, scheduled to be completed in 2021, will
significantly benefit the communities in which they
operate.
Progress continues on transformative mixed-use redevelopments of
Northgate Station (Seattle, WA)
and Phipps Plaza (Atlanta,
GA). The dynamic redevelopment at Phipps Plaza is
headlined by a Nobu Hotel and Nobu Restaurant, Citizens food hall,
Life Time Athletic and Life Time Work and One Phipps Plaza, a LEED certified, 13-story
Class A office building designed for the workplace of the
future. These additions are scheduled to open in 2022.
The transformation of Northgate Station will feature the National
Hockey League's Seattle Kraken corporate offices and the Kraken
Community Iceplex. This first phase of the Northgate Station
transformation is scheduled to be completed in the fall of
2021.
Capital Markets and Balance Sheet Liquidity
The Company was active in both the unsecured and secured credit
markets through the first six months of the year.
During the first six months, the Company closed on 13
non-recourse mortgage loans totaling approximately $2.2 billion (U.S. dollar equivalent), of which
Simon's share is $1.3 billion.
The weighted average interest rate on these loans is
2.90%.
As of June 30, 2021, Simon had
more than $8.8 billion of liquidity
consisting of $1.9 billion of cash on
hand, including its share of joint venture cash, and $6.9 billion of available capacity under its
revolving credit facilities, net of $500
million outstanding under its U.S. commercial paper
program.
Dividends
The Company paid its second quarter 2021 common stock dividend
of $1.40 per share, in cash, on
July 23, 2021, a 7.7% increase
sequentially and year-over-year.
Simon's Board of Directors declared a quarterly common stock
cash dividend of $1.50 for the third
quarter of 2021. This is a 15.4% increase year-over-year and
a 7.1% increase compared to the second quarter 2021 dividend.
The dividend will be payable on September
30, 2021 to shareholders of record on September 9, 2021.
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, 2021 to
shareholders of record on September
16, 2021.
2021 Guidance
The Company currently estimates net income to be within a range
of $5.47 to $5.57 per diluted share and FFO will be within a
range of $10.70 to $10.80 per diluted share for the year ending
December 31, 2021. The net
income per diluted share and FFO per diluted share ranges include
the $0.32 per diluted share non-cash
gain related to the deferred tax liability reversal. The FFO
per diluted share range is an increase from the $9.70 to $9.80 per
diluted share range provided on May 10,
2021, or an increase of $1.00
per diluted share at the
mid-point.
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 FFO per diluted
share:
For the year ending
December 31, 2021
|
|
Low
|
|
High
|
|
End
|
|
End
|
Estimated net income
attributable to common stockholders
per diluted share
|
$5.47
|
|
$5.57
|
Depreciation and
amortization including Simon's share
|
|
|
|
of unconsolidated
entities
|
5.47
|
|
5.47
|
Unrealized losses in
fair value of equity instruments
|
0.01
|
|
0.01
|
Gain on acquisition
of controlling interest, sale or
disposal of, or recovery on,
assets and interests in
unconsolidated entities and
impairment, net
|
(0.25)
|
|
(0.25)
|
|
|
|
|
Estimated FFO per
diluted share
|
$10.70
|
|
$10.80
|
Conference Call
Simon will hold a conference call to discuss the quarterly
financial results today at 5:00 p.m. Eastern
Daylight Time, Monday, August
2, 2021. 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 9, 2021. To access the
audio replay, dial 1-855-859-2056 (international 404-537-3406)
passcode 7455849.
Supplemental Materials and Website
Supplemental information on our second quarter 2021 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 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 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 business, 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; 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; the intensely competitive market
environment in the retail industry, including e-commerce; an
increase in vacant space at our properties; the inability to lease
newly developed properties and renew leases and relet space at
existing properties on favorable terms; 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; 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, 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;
changes in market rates of interest; the transition of LIBOR to an
alternative reference rate; 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, including guarantees of certain joint venture
indebtedness; environmental liabilities; natural disasters; the
availability of comprehensive insurance coverage; the potential for
terrorist activities; security breaches that could compromise
our information technology or infrastructure; 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 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 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.
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,
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
Lease
income
|
$
1,158,825
|
$
1,013,510
|
|
$
2,303,883
|
$
2,275,742
|
Management fees and
other revenues
|
26,061
|
21,035
|
|
51,358
|
50,201
|
Other
income
|
69,260
|
27,496
|
|
138,856
|
89,458
|
Total
revenue
|
1,254,146
|
1,062,041
|
|
2,494,097
|
2,415,401
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
Property
operating
|
96,073
|
70,620
|
|
182,692
|
176,243
|
Depreciation and
amortization
|
315,732
|
324,140
|
|
631,470
|
652,402
|
Real estate
taxes
|
114,695
|
117,221
|
|
230,706
|
234,764
|
Repairs and
maintenance
|
19,036
|
14,080
|
|
40,391
|
38,511
|
Advertising and
promotion
|
19,565
|
12,689
|
|
49,050
|
46,216
|
Home and regional
office costs
|
47,699
|
36,090
|
|
83,698
|
90,460
|
General and
administrative
|
7,254
|
7,296
|
|
13,830
|
14,190
|
Other
|
29,369
|
29,037
|
|
52,926
|
56,878
|
Total operating
expenses
|
649,423
|
611,173
|
|
1,284,763
|
1,309,664
|
|
|
|
|
|
|
OPERATING INCOME
BEFORE OTHER ITEMS
|
604,723
|
450,868
|
|
1,209,334
|
1,105,737
|
|
|
|
|
|
|
Interest
expense
|
(200,419)
|
(197,061)
|
|
(402,435)
|
(384,688)
|
Loss on
extinguishment of debt
|
-
|
-
|
|
(2,959)
|
-
|
Income and other tax
(expense) benefit
|
(47,003)
|
62
|
|
(41,105)
|
5,845
|
Income from
unconsolidated entities
|
348,545
|
44,322
|
|
363,614
|
94,787
|
Unrealized gains
(losses) in fair value of equity instruments
|
23
|
202
|
|
(3,177)
|
(18,846)
|
Gain (loss) on
acquisition of controlling interest, sale or disposal of, or
recovery on,
|
|
|
|
|
|
assets and interests in unconsolidated entities and impairment,
net
|
-
|
(7,845)
|
|
93,057
|
(6,883)
|
|
|
|
|
|
|
CONSOLIDATED NET
INCOME
|
705,869
|
290,548
|
|
1,216,329
|
795,952
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
87,778
|
35,501
|
|
151,543
|
102,465
|
Preferred
dividends
|
834
|
834
|
|
1,669
|
1,669
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
617,257
|
$ 254,213
|
|
$
1,063,117
|
$ 691,818
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
1.88
|
$ 0.83
|
|
$
3.24
|
$ 2.26
|
|
|
|
|
|
|
Simon Property
Group, Inc. Unaudited Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
|
|
|
|
|
June
30,
|
December
31,
|
|
2021
|
2020
|
ASSETS:
|
|
|
Investment
properties, at cost
|
$
37,938,181
|
$
38,050,196
|
Less - accumulated
depreciation
|
15,176,790
|
14,891,937
|
|
22,761,391
|
23,158,259
|
Cash and cash
equivalents
|
1,290,799
|
1,011,613
|
Tenant receivables
and accrued revenue, net
|
952,731
|
1,236,734
|
Investment in TRG, at
equity
|
3,415,996
|
3,451,897
|
Investment in
Klépierre, at equity
|
1,706,661
|
1,729,690
|
Investment in other
unconsolidated entities, at equity
|
2,746,162
|
2,603,571
|
Right-of-use assets,
net
|
508,371
|
512,914
|
Investments held in
trust - special purpose acquisition company
|
345,000
|
-
|
Deferred costs and
other assets
|
1,100,745
|
1,082,168
|
Total
assets
|
$
34,827,856
|
$
34,786,846
|
|
|
|
LIABILITIES:
|
|
|
Mortgages and
unsecured indebtedness
|
$
26,231,704
|
$
26,723,361
|
Accounts payable,
accrued expenses, intangibles, and deferred revenues
|
1,230,595
|
1,311,925
|
Cash distributions
and losses in unconsolidated entities, at equity
|
1,565,366
|
1,577,393
|
Dividend
payable
|
527,508
|
486,922
|
Lease
liabilities
|
511,211
|
515,492
|
Other
liabilities
|
546,619
|
513,515
|
Total
liabilities
|
30,613,003
|
31,128,608
|
|
|
|
Commitments and
contingencies
|
|
|
Limited partners'
preferred interest in the Operating Partnership and
noncontrolling
|
|
|
redeemable
interests
|
507,414
|
185,892
|
|
|
|
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
|
41,927
|
42,091
|
|
|
|
Common stock, $0.0001
par value, 511,990,000 shares authorized, 342,907,608
and
|
|
|
342,849,037 issued
and outstanding, respectively
|
34
|
34
|
|
|
|
Class B common stock,
$0.0001 par value, 10,000 shares authorized, 8,000
|
|
|
issued and
outstanding
|
-
|
-
|
|
|
|
Capital in excess of
par value
|
11,193,774
|
11,179,688
|
Accumulated
deficit
|
(5,931,119)
|
(6,102,314)
|
Accumulated other
comprehensive loss
|
(188,307)
|
(188,675)
|
Common stock held in
treasury, at cost, 14,296,445 and 14,355,621 shares,
respectively
|
(1,884,511)
|
(1,891,352)
|
Total stockholders'
equity
|
3,231,798
|
3,039,472
|
Noncontrolling
interests
|
475,641
|
432,874
|
Total
equity
|
3,707,439
|
3,472,346
|
Total liabilities
and equity
|
$
34,827,856
|
$
34,786,846
|
|
|
|
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,
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
Lease
income
|
$
681,349
|
$ 574,246
|
|
$
1,334,103
|
$
1,318,096
|
Other
income
|
64,694
|
46,205
|
|
137,293
|
120,718
|
Total
revenue
|
746,043
|
620,451
|
|
1,471,396
|
1,438,814
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
Property
operating
|
136,129
|
107,309
|
|
269,166
|
254,339
|
Depreciation and
amortization
|
170,443
|
165,511
|
|
341,597
|
336,989
|
Real estate
taxes
|
68,123
|
60,634
|
|
137,021
|
129,023
|
Repairs and
maintenance
|
16,304
|
13,589
|
|
35,350
|
33,204
|
Advertising and
promotion
|
14,797
|
10,016
|
|
34,241
|
32,768
|
Other
|
37,657
|
15,734
|
|
69,643
|
65,964
|
Total operating
expenses
|
443,453
|
372,793
|
|
887,018
|
852,287
|
|
|
|
|
|
|
OPERATING INCOME
BEFORE OTHER ITEMS
|
302,590
|
247,658
|
|
584,378
|
586,527
|
|
|
|
|
|
|
Interest
expense
|
(152,447)
|
(152,409)
|
|
(298,644)
|
(309,050)
|
Gain on sale or
disposal of, or recovery on, assets and interests in
unconsolidated entities,
net
|
33,371
|
-
|
|
33,371
|
-
|
|
|
|
|
|
|
NET
INCOME
|
$
183,514
|
$ 95,249
|
|
$
319,105
|
$ 277,477
|
|
|
|
|
|
|
Third-Party
Investors' Share of Net Income
|
$
92,745
|
$ 53,989
|
|
$
160,886
|
$ 146,848
|
|
|
|
|
|
|
Our Share of Net
Income
|
90,769
|
41,260
|
|
158,219
|
130,629
|
Amortization of
Excess Investment (A)
|
(15,268)
|
(20,761)
|
|
(34,595)
|
(41,601)
|
Our Share of Gain
on Sale or Disposal of Assets and Interests in
|
|
|
|
|
|
Other Income in
the Consolidated Financial Statements
|
(14,941)
|
-
|
|
(14,941)
|
-
|
|
|
|
|
|
|
Income from
Unconsolidated Entities (B)
|
$
60,560
|
$ 20,499
|
|
$
108,683
|
$ 89,028
|
|
|
|
|
|
|
Note: The above
financial presentation does not include any information related to
our investments in Klépierre S.A.
|
("Klépierre") and The Taubman Realty Group ("TRG"). For additional
information, see footnote B.
|
Simon Property
Group, Inc.
Unaudited Joint
Venture Combined Balance Sheets
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
December
31,
|
|
|
2021
|
2020
|
|
Assets:
|
|
|
|
Investment
properties, at cost
|
$
19,885,109
|
$
20,079,476
|
|
Less - accumulated
depreciation
|
8,157,942
|
8,003,863
|
|
|
11,727,167
|
12,075,613
|
|
Cash and cash
equivalents
|
1,356,266
|
1,169,422
|
|
Tenant receivables
and accrued revenue, net
|
571,652
|
749,231
|
|
Right-of-use assets,
net
|
168,752
|
185,598
|
|
Deferred costs and
other assets
|
387,285
|
380,087
|
|
Total
assets
|
$
14,211,122
|
$
14,559,951
|
|
|
|
|
|
Liabilities and
Partners' Deficit:
|
|
|
|
Mortgages
|
$
15,430,065
|
$
15,569,485
|
|
Accounts payable,
accrued expenses, intangibles, and deferred revenue
|
840,432
|
969,242
|
|
Lease
liabilities
|
172,281
|
188,863
|
|
Other
liabilities
|
395,463
|
426,321
|
|
Total
liabilities
|
16,838,241
|
17,153,911
|
|
|
|
|
|
Preferred
units
|
67,450
|
67,450
|
|
Partners'
deficit
|
(2,694,569)
|
(2,661,410)
|
|
Total liabilities and
partners' deficit
|
$
14,211,122
|
$
14,559,951
|
|
|
|
|
|
Our Share
of:
|
|
|
|
Partners'
deficit
|
$
(1,150,296)
|
$
(1,130,713)
|
|
Add: Excess
Investment (A)
|
1,317,383
|
1,399,757
|
|
Our net Investment in
unconsolidated entities, at equity
|
$
167,087
|
$ 269,044
|
|
|
Note: The above
financial presentation does not include any information related to
our investments in Klépierre
|
|
and TRG. 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,
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Income (D)
|
|
$
705,869
|
|
$
290,548
|
|
$
1,216,329
|
|
$
795,952
|
|
|
Adjustments to
Arrive at FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from consolidated
|
|
|
|
|
|
|
|
|
|
|
|
properties
|
|
313,572
|
|
321,707
|
|
627,147
|
|
647,745
|
|
|
|
Our share of
depreciation and amortization from
|
|
|
|
|
|
|
|
|
|
|
|
unconsolidated entities,
including Klépierre, TRG and other corporate investments
|
|
202,515
|
|
129,309
|
|
406,752
|
|
266,017
|
|
|
|
(Gain) loss on
acquisition of controlling interest, sale or disposal of, or
recovery on,
|
|
|
|
|
|
|
|
|
|
|
|
assets and interests in
unconsolidated entities and impairment, net
|
|
-
|
|
7,845
|
|
(93,057)
|
|
6,883
|
|
|
|
Unrealized (gains)
losses in fair value of equity instruments
|
|
(23)
|
|
(202)
|
|
3,177
|
|
18,846
|
|
|
|
Net loss attributable
to noncontrolling interest holders in
|
|
|
|
|
|
|
|
|
|
|
|
properties
|
|
1,531
|
|
3,628
|
|
2,469
|
|
3,799
|
|
|
|
Noncontrolling
interests portion of depreciation and amortization and gain on
consolidation of properties
|
|
(5,259)
|
|
(5,048)
|
|
(9,348)
|
|
(9,511)
|
|
|
|
Preferred
distributions and dividends
|
|
(1,313)
|
|
(1,313)
|
|
(2,626)
|
|
(2,626)
|
|
|
FFO of the
Operating Partnership
|
|
$
1,216,892
|
|
$
746,474
|
|
$
2,150,843
|
|
$
1,727,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share to diluted FFO per share reconciliation:
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share
|
|
$
1.88
|
|
$
0.83
|
|
$
3.24
|
|
$
2.26
|
|
|
|
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
|
|
1.36
|
|
1.27
|
|
2.72
|
|
2.57
|
|
|
|
(Gain) loss on
acquisition of controlling interest, sale or disposal of, or
recovery on,
|
|
|
|
|
|
|
|
|
|
|
|
assets and interests
in unconsolidated entities and impairment, net
|
|
-
|
|
0.02
|
|
(0.25)
|
|
0.02
|
|
|
|
Unrealized (gains)
losses in fair value of equity instruments
|
|
-
|
|
-
|
|
0.01
|
|
0.05
|
|
|
Diluted FFO per
share
|
|
$
3.24
|
|
$
2.12
|
|
$
5.72
|
|
$
4.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details for per share
calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO of the Operating
Partnership
|
|
$
1,216,892
|
|
$
746,474
|
|
$
2,150,843
|
|
$
1,727,105
|
|
|
Diluted FFO allocable
to unitholders
|
|
(153,089)
|
|
(98,537)
|
|
(270,684)
|
|
(228,166)
|
|
|
Diluted FFO allocable
to common stockholders
|
|
$
1,063,803
|
|
$
647,937
|
|
$
1,880,159
|
|
$
1,498,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares outstanding
|
|
328,594
|
|
305,882
|
|
328,555
|
|
306,193
|
|
|
Weighted average
limited partnership units outstanding
|
|
47,281
|
|
46,528
|
|
47,301
|
|
46,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares and units outstanding
|
|
375,875
|
|
352,410
|
|
375,856
|
|
352,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted FFO
per Share
|
|
$
3.24
|
|
$
2.12
|
|
$
5.72
|
|
$
4.90
|
|
|
Percent Change
|
|
52.8%
|
|
|
|
16.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 TRG.
Amounts included in Footnote D below exclude our share of related
activity for our investments in Klépierre and TRG. 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 $0.9 million and $1.1 million for the three months ended June
30, 2021 and 2020, respectively, and $1.6 million and $6.3 million
for the six months ended June 30, 2021 and 2020,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Straight-line
adjustments (decreased) increased income by ($5.9) million and
($2.6) million for the three months ended June 30, 2021 and 2020,
respectively, and ($15.0) million and $9.4 million for the six
months ended June 30, 2021 and 2020, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Amortization of fair
market value of leases from acquisitions (decreased) increased
income by ($0.2) million and $1.1 million for the three months
ended June 30, 2021 and 2020, respectively, and ($0.4) million and
$2.4 million for the six months ended June 30, 2021 and 2020,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Simon