Slide 1: 3Q 2023 Supplemental: Earnings Release & Supplemental Information
3Q 2023 SUPPLEMENTAL SIMON PROPERTY GROUP EARNINGS RELEASE & SUPPLEMENTAL INFORMATION UNAUDITED THIRD QUARTER
Slide 2: Table of Contents
TABLE OF CONTENTS EARNINGS RELEASE AND SUPPLEMENTAL INFORMATION FOR THE QUARTER ENDED SEPTEMBER 30, 2023 PAGE Earnings Release(1) 2−11 Overview 12 The Company 12 Stock Information, Credit Ratings and Senior Unsecured Debt Covenants 13 Financial Data Selected Financial and Equity Information 14 Net O
Slide 3: Simon Reports Third Quarter 2023 Results
EARNINGS RELEASE Contacts: Tom Ward 317-685-7330 Investors Nicole Kennon 704-804-1960 Media SIMON® REPORTS THIRD QUARTER 2023 RESULTS AND INCREASES FULL YEAR 2023 GUIDANCE INDIANAPOLIS, October 30, 2023 – Simon®, a real estate investment trust engaged in the ownership of premier shopping, dining, en
Slide 4: Operating Statistics, Development Activity and Liquidity
EARNINGS RELEASE U.S. Malls and Premium Outlets Operating Statistics • Occupancy was 95.2% at September 30, 2023, compared to 94.5% at September 30, 2022, an increase of 70 basis points. • Base minimum rent per square foot was $56.41 at September 30, 2023, compared to $54.80 at September 30, 2022, a
Slide 5: Full Year 2023 Guidance and Conference Call
EARNINGS RELEASE For the year ending December 31, 2023 Low High End End Estimated net income attributable to common stockholders per diluted share * $ 6.67 $ 6.77 Depreciation and amortization including Simon’s share of unconsolidated entities 5.45 5.45 Loss on acquisition of controlling interest, s
Slide 6: Forward-Looking Statements
EARNINGS RELEASE 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, including but not limited to those caused
Slide 7: Consolidated Statements of Operations
EARNINGS RELEASE Simon Property Group, Inc. Unaudited Consolidated Statements of Operations (Dollars in thousands, except per share amounts) For the Three Months For the Nine Months Ended September 30, Ended September 30, 2023 2022 2023 2022 REVENUE: Lease income $1,298,737 $1,215,470 $3,801,880 $3,
Slide 8: Consolidated Balance Sheets
EARNINGS RELEASE Simon Property Group, Inc. Unaudited Consolidated Balance Sheets (Dollars in thousands, except share amounts) September 30, December 31, 2023 2022 ASSETS: Investment properties, at cost $38,951,669 $38,326,912 Less – accumulated depreciation 17,410,320 16,563,749 21,541,349 21,763,1
Slide 9: Joint Venture Combined Statements of Operations
EARNINGS RELEASE Simon Property Group, Inc. Unaudited Joint Venture Combined Statements of Operations (Dollars in thousands) For the Three Months For the Nine Months Ended September 30, Ended September 30, 2023 2022 2023 2022 REVENUE: Lease income $ 743,388 $ 710,084 $2,212,197 $2,142,068 Other inco
Slide 10: Joint Venture Combined Balance Sheets
EARNINGS RELEASE Simon Property Group, Inc. Unaudited Joint Venture Combined Balance Sheets (Dollars in thousands) September 30, December 31, 2023 2022 Assets: Investment properties, at cost $19,085,972 $19,256,108 Less – accumulated depreciation 8,673,301 8,490,990 10,412,671 10,765,118 Cash and ca
Slide 11: Reconciliation of Non-GAAP Financial Measures
EARNINGS RELEASE 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 Nine Months Ended September 30, September 30, 2023 2022 2023 20
Slide 12: Footnotes to Unaudited Financial Information
EARNINGS RELEASE 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 a
Slide 13: Overview: The Company
OVERVIEW THE COMPANY Simon Property Group, Inc. (NYSE:SPG) is a self-administered and self-managed real estate investment trust (“REIT”). Simon Property Group, L.P., or the Operating Partnership, is our majority-owned partnership subsidiary that owns all of our real estate properties and other asset
Slide 14: Stock Information, Credit Ratings and Debt Covenants
OVERVIEW STOCK INFORMATION The Company’s common stock and one series of preferred stock are traded on the New York Stock Exchange under the following symbols: Common Stock SPG 8.375% Series J Cumulative Redeemable Preferred SPGPrJ CREDIT RATINGS Standard & Poor’s Corporate A- (Stable Outlook) Senior
Slide 15: Selected Financial and Equity Information
SELECTED FINANCIAL AND EQUITY INFORMATION (In thousands, except as noted) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2023 2022 2023 2022 Financial Highlights Total Revenue – Consolidated Properties $1,410,948 $1,315,786 $4,131,398 $3,891,550 Consolidated Net Income $ 680,762 $
Slide 16: Net Operating Income (NOI) Composition
NET OPERATING INCOME (NOI) COMPOSITION(1) For the Nine Months Ended September 30, 2023 NOI BREAKDOWN U.S. PORTFOLIO NOI BY STATE(2) FL 18.7% TRG ALL OTHERS 7.9% 24.2% INTERNATIONAL (3) 9.3% THE MILLS 11.3% CA IN 14.0% 2.7% U.S. MALLS & PREMIUM OUTLETS 71.5% GA 3.3% MA 4.7% PA TX 4.8% 10.2% NJ 5.3% N
Slide 17: Net Operating Income Overview (At Share)
NET OPERATING INCOME OVERVIEW (AT SHARE) (In thousands) FOR THE THREE MONTHS FOR THE NINE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, 2023 2022 % GROWTH 2023 2022 % GROWTH (1) Domestic Property NOI $1,295,883 $1,243,338 4.2% $3,852,439 $3,710,067 3.8% International Properties (2) 74,822 70,392 22
Slide 18: Reconciliation of Net Income to NOI
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (In thousands, except as noted) RECONCILIATION OF NET INCOME TO NOI THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2023 2022 2023 2022 Reconciliation of NOI of consolidated entities: Consolidated Net Income $ 680,762 $ 621,847 $1,757,5
Slide 19: FFO to Funds Available for Distribution
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (In thousands, except as noted) RECONCILIATION OF FFO OF THE OPERATING PARTNERSHIP TO FUNDS AVAILABLE FOR DISTRIBUTION (OUR SHARE) THREE NINE MONTHS ENDED MONTHS ENDED SEPTEMBER 30, 2023 SEPTEMBER 30, 2023 FFO of the Operating Partnership $1,200,754 $ 3
Slide 20: Lease Income, Other Income, Other Expense and Capitalized Interest
LEASE INCOME, OTHER INCOME, OTHER EXPENSE, INCOME FROM UNCONSOLIDATED ENTITIES, AND CAPITALIZED INTEREST (In thousands) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, Consolidated Properties 2023 2022 2023 2022 Lease Income Fixed lease income (1) $ 1,041,999 $ 952,615 $ 3,078,043 $
Slide 21: Operating Information
OPERATING INFORMATION AS OF SEPTEMBER 30, AS OF SEPTEMBER 30, 2023 2022 2023 2022 U.S. Malls and Premium Outlets The Mills Total Number of Properties 162 163 Total Number of Properties 14 14 Total Square Footage of Properties (in millions) 136.6 137.3 Total Square Footage of Properties (in millions)
Slide 22: U.S. Malls and Premium Outlets Lease Expirations
U.S. MALLS AND PREMIUM OUTLETS LEASE EXPIRATIONS (1)(2) AVG. BASE PERCENTAGE OF NUMBER OF MINIMUM GROSS ANNUAL LEASES RENT PSF RENTAL YEAR EXPIRING SQUARE FEET AT EXPIRATION (3) REVENUES (4) Inline Stores and Freestanding Month to Month Leases 1,409 5,150,545 $59.47 5.7% 2023 (10/1/23 – 12/31/23) 38
Slide 23: U.S. Malls and Premium Outlets Top Tenants
U.S. MALLS AND PREMIUM OUTLETS TOP TENANTS(1) Top Inline Store Tenants (sorted by percentage of total base minimum rent for U.S. properties) NUMBER SQUARE PERCENT OF PERCENT OF TOTAL OF FEET TOTAL SQ. FT. IN BASE MINIMUM RENT TENANT STORES (000’S) U.S. PROPERTIES FOR U.S. PROPERTIES The Gap 284 3,05
Slide 24: Capital Expenditures
CAPITAL EXPENDITURES(1) (In thousands) UNCONSOLIDATED PROPERTIES CONSOLIDATED OUR PROPERTIES TOTAL SHARE New development projects $ 138,038 $ 23,364 $ 7,101 Redevelopment projects with incremental square footage and/or anchor replacement 290,851 101,892 50,424 Redevelopment projects with no incremen
Slide 25: Development Activity Summary
DEVELOPMENT ACTIVITY SUMMARY(1) As of September 30, 2023 (in thousands, except percent) EXPECTED OUR SHARE STABILIZED ACTUAL 2023 FORECASTED FORECASTED FORECASTED FORECASTED PLATFORM OF NET RATE OF INVESTMENT INVESTMENT INVESTMENT INVESTMENT TOTAL INVESTMENT PROJECT TYPE INVESTMENT RETURN THRU Q3 20
Slide 26: Common and Preferred Stock Information
COMMON AND PREFERRED STOCK INFORMATION CHANGES IN COMMON SHARE AND LIMITED PARTNERSHIP UNIT OWNERSHIP For the Period December 31, 2022 through September 30, 2023 LIMITED COMMON PARTNERSHIP SHARES (1) UNITS (2) Number Outstanding at December 31, 2022 326,953,791 47,302,958 Activity During the First S
Slide 27: Credit Profile
CREDIT PROFILE(1) NET DEBT ($ BILLIONS) FIXED CHARGE COVERAGE (X) UNSECURED INTEREST COVERAGE (X) (2) Non-Recourse Mortgage Debt Unsecured Net Debt 35.0 32.2 6.9 30.1 30.9 30.2 30.0 7.0 6.0 30.0 18.8 5.3 6.0 19.4 5.0 5.8 5.8 16.6 18.8 19.0 4.8 6.0 5.3 5.0 4.5 25.0 4.2 5.0 4.0 20.0 4.0 15.0 3.0 3.0 1
Slide 28: Summary of Indebtedness
SUMMARY OF INDEBTEDNESS(1) As of September 30, 2023 (In thousands) WEIGHTED WEIGHTED WEIGHTED WEIGHTED OUR AVERAGE AVERAGE OUR AVERAGE AVERAGE TOTAL SHARE OF END OF PERIOD YEARS TO TOTAL SHARE OF END OF PERIOD YEARS TO INDEBTEDNESS INDEBTEDNESS INTEREST RATE MATURITY INDEBTEDNESS INDEBTEDNESS INTERE
Slide 29: Total Debt Amortization and Maturities by Year
TOTAL DEBT AMORTIZATION AND MATURITIES BY YEAR (OUR SHARE)(1) As of September 30, 2023 (In thousands) UNSECURED CONSOLIDATED DEBT SECURED CONSOLIDATED DEBT UNCONSOLIDATED JOINT VENTURE DEBT TOTAL WEIGHTED WEIGHTED WEIGHTED WEIGHTED OUR SHARE AVERAGE OUR SHARE AVERAGE OUR SHARE AVERAGE OUR SHARE AVER
Slide 30: Unsecured Debt Information
UNSECURED DEBT INFORMATION As of September 30, 2023 DEBT INFORMATION INDEBTEDNESS MATURITY INTEREST TOTAL DATE RATE (1) TYPE ($ IN 000’S) Unsecured Indebtedness: Simon Property Group, LP (Sr. Notes) 2/1/2024 3.75% Fixed 600,000 Simon Property Group, LP (Sr. Notes) 9/13/2024 2.00% Fixed 1,000,000 Sim
Slide 31: Property and Debt Information: Malls
PROPERTY AND DEBT INFORMATION As of September 30, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’s) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE Malls (2) 1. Apple Blossom Mall VA Winchester 49.1% 473,909 (2) 2. Auburn Mall MA Au
Slide 32: Property and Debt Information: Malls
PROPERTY AND DEBT INFORMATION As of September 30, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’s) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE 40. Mall at Rockingham Park, The NH Salem (Boston) 28.2% 1,063,692 06/01/26 4.04% Fi
Slide 33: Property and Debt Information: Malls
PROPERTY AND DEBT INFORMATION As of September 30, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’s) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE (2) 80. Tacoma Mall WA Tacoma (Seattle) 100.0% 1,247,391 (2) 81. Tippecanoe Mall IN
Slide 34: Property and Debt Information: Premium Outlets
PROPERTY AND DEBT INFORMATION As of September 30, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’s) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE Premium Outlets (2) 1. Albertville Premium Outlets MN Albertville (Minneapolis) 100.
Slide 35: Property and Debt Information: Premium Outlets
PROPERTY AND DEBT INFORMATION As of September 30, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’s) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE (2) 39. North Georgia Premium Outlets GA Dawsonville (Atlanta) 100.0% 540,672 (2) 40
Slide 36: Property and Debt Information: The Mills
PROPERTY AND DEBT INFORMATION As of September 30, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’s) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE The Mills 1. Arizona Mills AZ Tempe (Phoenix) 100.0% 1,221,034 09/01/26 3.80% Fixed
Slide 37: Property and Debt Information: International Properties
PROPERTY AND DEBT INFORMATION As of September 30, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’s) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE International Properties AUSTRIA (13) 1. Parndorf Designer Outlet Phases 3 & 4 Vienn
Slide 38: Property and Debt Information: International Properties
PROPERTY AND DEBT INFORMATION As of September 30, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’s) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE KOREA (16) 21. Busan Premium Outlets Busan 50.0% 360,200 11/23/25 3.88% Fixed 76,353
Slide 39: Property and Debt Information: Taubman Realty Group
PROPERTY AND DEBT INFORMATION As of September 30, 2023 DEBT INFORMATION TRG TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’s) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL TRG SHARE Taubman Realty Group (2) 1. Beverly Center CA Los Angeles 100.0% 780,000 2. Cherry Cre
Slide 40: Property and Debt Information Footnotes
PROPERTY AND DEBT INFORMATION As of September 30, 2023 FOOTNOTES: (1) Variable rate debt interest rates are based on the following base rates as of September 30, 2023: 1M LIBOR at 5.4335%; Overnight SOFR 5.31%; CME Term SOFR 5.3190%; 30 Day Average SOFR 5.3166%; 1M EURIBOR at 3.847%; 3M EURIBOR at 3
Slide 41: Non-GAAP Pro-Rata Financial Information
NON-GAAP PRO-RATA FINANCIAL INFORMATION The following pro-rata financial information is not, and is not intended to be, a presentation in accordance with GAAP. The non-GAAP pro-rata financial information aggregates our proportionate economic ownership of each asset in our property portfolio that we
Slide 42: Non-GAAP Pro-Rata Financial Information: Three Months
NON-GAAP PRO-RATA FINANCIAL INFORMATION (In thousands) FOR THE THREE MONTHS ENDED FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023 SEPTEMBER 30, 2022 OUR OUR NONCONTROLLING SHARE OF NONCONTROLLING SHARE OF INTERESTS (1) JOINT VENTURES INTERESTS (1) JOINT VENTURES REVENUE: Lease income $(14,106) $344,37
Slide 43: Non-GAAP Pro-Rata Financial Information: Nine Months
NON-GAAP PRO-RATA FINANCIAL INFORMATION (In thousands) FOR THE NINE MONTHS ENDED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 SEPTEMBER 30, 2022 OUR OUR NONCONTROLLING SHARE OF NONCONTROLLING SHARE OF INTERESTS (1) JOINT VENTURES INTERESTS (1) JOINT VENTURES REVENUE: Lease income $(41,597) $1,027,12
Slide 44: Non-GAAP Pro-Rata Financial Information: Balance Sheet
NON-GAAP PRO-RATA FINANCIAL INFORMATION (In thousands) AS OF SEPTEMBER 30, 2023 AS OF SEPTEMBER 30, 2022 OUR OUR NONCONTROLLING SHARE OF NONCONTROLLING SHARE OF INTERESTS JOINT VENTURES INTERESTS JOINT VENTURES ASSETS: Investment properties, at cost $(545,471) $10,223,004 $(526,170) $10,016,111 Less