Simon Property Group, Inc. · NYSE:SPG
Simon Property — Merger or Acquisition (February 2020)
8 slides from Simon Property's merger presentation, Feb 10, 2020
Slide 1: Simon Property Group to Acquire Taubman Centers, Inc.
SIMON PROPERTY GROUP TO ACQUIRE TAUBMAN CENTERS, INC. INVESTOR PRESENTATION FEBRUARY 10, 2020
Slide 2: Important Information: Forward-Looking Statements
IMPORTANT INFORMATION 2 FORWARD - LOOKING STATEMENTS This presentation contains certain “forward - looking” statements as that term is defined by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are predictive
Slide 3: Transaction Overview: Summary of Transaction
3 TRANSACTION OVERVIEW SUMMARY OF TRANSACTION Management & Board ▪ TRG management will continue to operate the TRG assets in partnership with Simon ▪ New TRG board to be comprised of 3 Simon designees and 3 Taubman designees Dividend ▪ Simon expects to maintain a quarterly dividend of at least $2.10
Slide 4: Transaction Overview: Summary of Joint Venture Agreement
4 TRANSACTION OVERVIEW SUMMARY OF JOINT VENTURE AGREEMENT Simon Taubman Family Taubman Realty Group, LLC (“TRG”) ▪ Robert Taubman will continue to be Chairman, President and CEO of TRG ▪ TRG Board will have operational and corporate approval rights; Board comprised of 3 Simon and 3 Taubman designees
Slide 5: Transaction Benefits and Strategic Rationale
TRANSACTION BENEFITS AND STRATEGIC RATIONALE 5 3 Expected to be at least 3% accretive to Simon FFO per share on an annualized basis immediately upon consummation 1 Acquisition of a highly productive mall portfolio at a 6.2% underwritten cap rate 5 Simon has the ability to continue to attract capital
Slide 6: Sources and Uses
SOURCES AND USES 6 Transaction Consideration Equity consideration consists of the following: 80% Acquired Interest Cash: $3.6bn Expected to be funded with existing liquidity Simon OP Units: $119mm (1) ~863k units or merger consideration at the unitholders election 20% Retained Interest Taubman Famil
Slide 7: Taubman's Owned Portfolio
TAUBMAN’S OWNED PORTFOLIO 7 24 Assets and managed properties (1) (21 U.S. / 3 International) ~25mm Total GLA (At 100%) $972 U.S. Comp. Sales PSF (2) ~94% 4Q19 Occupancy (3) (1) Excludes 1 development property in Anseong, South Korea and 1 ground lease in Chesterfield, Missouri. (2) TTM basis as of 4
Slide 8: Taubman Retail Assets
8 TAUBMAN RETAIL ASSETS Dolphin Mall Miami, FL The Mall at Short Hills Short Hills, NJ International Plaza Tampa, FL International Market Place Honolulu, HI The Mall at Millenia Orlando, FL Twelve Oaks Mall Novi, MI Great Lakes Crossing Outlets Auburn Hills, MI Fair Oaks Mall Fairfax, VA
Simon Property Group — Merger or Acquisition (February 2020) on 6ix