Simon Property Group, Inc. · NYSE:SPG
Simon Property — Q4 2023 Earnings Presentation
44 slides from Simon Property's earnings presentation, Feb 5, 2024
Slide 1: 4Q 2023 Supplemental: Earnings Release & Supplemental Information
4Q 2023 SUPPLEMENTAL SIMON PROPERTY GROUP EARNINGS RELEASE & SUPPLEMENTAL INFORMATION UNAUDITED FOURTH QUARTER
Slide 2: Table of Contents
TABLE OF CONTENTS EARNINGS RELEASE AND SUPPLEMENTAL INFORMATION FOR THE QUARTER ENDED DECEMBER 31, 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 Op
Slide 3: Earnings Release: Fourth Quarter and Full Year 2023 Results
EARNINGS RELEASE Contacts: Tom Ward 317-685-7330 Investors Nicole Kennon 704-804-1960 Media SIMON® REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS AND RAISES QUARTERLY DIVIDEND INDIANAPOLIS, February 5, 2024 – Simon®, a real estate investment trust engaged in the ownership of premier shopping, din
Slide 4: Earnings Release: Operating Statistics and Capital Markets
EARNINGS RELEASE • FFO was $4.686 billion, or $12.51 per diluted share as compared to $4.481 billion, or $11.95 per diluted share in the prior year, inclusive of the gains referenced above. • Domestic property NOI increased 4.8% and portfolio NOI increased 4.9% compared to the prior year period. U.S
Slide 5: Earnings Release: 2024 Guidance and Conference Call
EARNINGS RELEASE For the year ending December 31, 2024 Low High End End Estimated net income attributable to common stockholders per diluted share $ 6.45 $ 6.70 Depreciation and amortization including Simon’s share of unconsolidated entities 5.40 5.40 Estimated FFO per diluted share $11.85 $12.10 Co
Slide 6: Earnings Release: Forward-Looking Statements
EARNINGS RELEASE renew leases and relet vacant space at existing properties on favorable terms; the potential loss of anchor stores or major tenants; the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; an increase in vacant space at our properties; the potentia
Slide 7: Unaudited 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 Twelve Months Ended December 31, Ended December 31, 2023 2022 2023 2022 REVENUE: Lease income $1,362,455 $1,287,141 $5,164,335 $4,
Slide 8: Unaudited Consolidated Balance Sheets
EARNINGS RELEASE Simon Property Group, Inc. Unaudited Consolidated Balance Sheets (Dollars in thousands, except share amounts) December 31, December 31, 2023 2022 ASSETS: Investment properties, at cost $39,285,138 $38,326,912 Less – accumulated depreciation 17,716,788 16,563,749 21,568,350 21,763,16
Slide 9: Unaudited 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 Twelve Months Ended December 31, Ended December 31, 2023 2022 2023 2022 REVENUE: Lease income $ 772,258 $ 752,541 $2,984,455 $2,894,611 Other inco
Slide 10: Unaudited Joint Venture Combined Balance Sheets
EARNINGS RELEASE Simon Property Group, Inc. Unaudited Joint Venture Combined Balance Sheets (Dollars in thousands) December 31, December 31, 2023 2022 Assets: Investment properties, at cost $19,315,578 $19,256,108 Less – accumulated depreciation 8,874,745 8,490,990 10,440,833 10,765,118 Cash and cas
Slide 11: Reconciliation of Non-GAAP Financial Measures: Net Income to FFO
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 Twelve Months Ended December 31, December 31, 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 TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, 2023 2022 2023 2022 Financial Highlights Total Revenue – Consolidated Properties $1,527,438 $1,399,898 $5,658,836 $5,291,447 Consolidated Net Income $ 859,496 $
Slide 16: Net Operating Income (NOI) Composition
NET OPERATING INCOME (NOI) COMPOSITION (1) For the Twelve Months Ended December 31, 2023 NOI BREAKDOWN U.S. PORTFOLIO NOI BY STATE(2) FL 18.7% TRG ALL OTHERS 7.9% 24.0% INTERNATIONAL (3) 9.4% THE MILLS 11.3% CA IN 14.1% 2.7% U.S. MALLS & PREMIUM OUTLETS 71.4% GA 3.3% MA 4.7% PA TX 4.8% 10.2% NJ 5.4%
Slide 17: Net Operating Income Overview (At Share)
NET OPERATING INCOME OVERVIEW (AT SHARE) (In thousands) FOR THE THREE MONTHS FOR THE TWELVE MONTHS ENDED DECEMBER 31, ENDED DECEMBER 31, 2023 2022 % GROWTH 2023 2022 % GROWTH (1) Domestic Property NOI $1,420,732 $1,324,489 7.3% $5,262,973 $5,023,291 4.8% International Properties (2) 83,860 78,411 30
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 TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, 2023 2022 2023 2022 Reconciliation of NOI of consolidated entities: Consolidated Net Income $ 859,496 $ 772,748 $ 2,617,
Slide 19: Reconciliation of 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 TWELVE MONTHS ENDED MONTHS ENDED DECEMBER 31, 2023 DECEMBER 31, 2023 FFO of the Operating Partnership $ 1,381,963 $
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 TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, Consolidated Properties 2023 2022 2023 2022 Lease Income Fixed lease income (1) $ 1,067,245 $ 984,108 $ 4,145,288 $
Slide 21: Operating Information
OPERATING INFORMATION AS OF DECEMBER 31, AS OF DECEMBER 31, 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) 136.7 137.6 Total Square Footage of Properties (in millions) 2
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 1,411 4,689,200 $63.14 5.2% 2024 3,138 11,781,465 $54.56
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 283 3,0
Slide 24: Capital Expenditures
CAPITAL EXPENDITURES (1) (In thousands) UNCONSOLIDATED PROPERTIES CONSOLIDATED OUR PROPERTIES TOTAL SHARE New development projects $ 179,726 $ 25,869 $ 8,983 Redevelopment projects with incremental square footage and/or anchor replacement 354,042 131,120 65,179 Redevelopment projects with no increme
Slide 25: Development Activity Summary
DEVELOPMENT ACTIVITY SUMMARY (1) As of December 31, 2023 (in thousands, except percent) EXPECTED OUR SHARE STABILIZED FORECASTED FORECASTED PLATFORM OF NET RATE OF ACTUAL 2023 INVESTMENT TOTAL INVESTMENT PROJECT TYPE INVESTMENT RETURN INVESTMENT FY 2024 - 2025 2023 - 2025 Malls Redevelopments $ 874,
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 December 31, 2023 LIMITED COMMON PARTNERSHIP SHARES (1) UNITS (2) Number Outstanding at December 31, 2022 326,953,791 47,302,958 Activity During the First Ni
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 6.0 7.0 29.7 30.0 18.8 5.3 19.4 5.0 5.8 5.8 16.6 18.8 18.6 4.8 6.0 5.3 5.4 5.0 25.0 4.2 4.3 5.0 4.0 20.0 4.0 3.0 15.0 3.0 1
Slide 28: Summary of Indebtedness
SUMMARY OF INDEBTEDNESS (1) As of December 31, 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 (Our Share)
TOTAL DEBT AMORTIZATION AND MATURITIES BY YEAR (OUR SHARE) (1) As of December 31, 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 December 31, 2023 DEBT INFORMATION INDEBTEDNESS MATURITY INTEREST TOTAL DATE RATE 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 Simon Pr
Slide 31: Property and Debt Information: Malls
PROPERTY AND DEBT INFORMATION As of December 31, 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 Aub
Slide 32: Property and Debt Information: Malls (continued)
PROPERTY AND DEBT INFORMATION As of December 31, 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% Fix
Slide 33: Property and Debt Information: Malls (continued)
PROPERTY AND DEBT INFORMATION As of December 31, 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% 1,249,153 (2) 81. Tippecanoe Mall IN L
Slide 34: Property and Debt Information: Premium Outlets
PROPERTY AND DEBT INFORMATION As of December 31, 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) 100.0
Slide 35: Property and Debt Information: Premium Outlets (continued)
PROPERTY AND DEBT INFORMATION As of December 31, 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) 40. North Georgia Premium Outlets GA Dawsonville (Atlanta) 100.0% 540,672 (2) 41.
Slide 36: Property and Debt Information: The Mills
PROPERTY AND DEBT INFORMATION As of December 31, 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 9
Slide 37: Property and Debt Information: International Properties
PROPERTY AND DEBT INFORMATION As of December 31, 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 Vienna
Slide 38: Property and Debt Information: International Properties (continued)
PROPERTY AND DEBT INFORMATION As of December 31, 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 4.40% Fixed 84,822
Slide 39: Property and Debt Information: Taubman Realty Group
PROPERTY AND DEBT INFORMATION As of December 31, 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 Cree
Slide 40: Property and Debt Information: Footnotes
PROPERTY AND DEBT INFORMATION As of December 31, 2023 FOOTNOTES: (1) Variable rate debt interest rates are based on the following base rates as of December 31, 2023: Overnight SOFR 5.38%; CME Term SOFR 5.3547%; 30 Day Average SOFR 5.3441%; 1M EURIBOR at 3.845%; 3M EURIBOR at 3.909%; 6M 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 DECEMBER 31, 2023 DECEMBER 31, 2022 OUR OUR NONCONTROLLING SHARE OF NONCONTROLLING SHARE OF INTERESTS (1) JOINT VENTURES INTERESTS (1) JOINT VENTURES REVENUE: Lease income $(15,120) $360,858
Slide 43: Non-GAAP Pro-Rata Financial Information: Twelve Months
NON-GAAP PRO-RATA FINANCIAL INFORMATION (In thousands) FOR THE TWELVE MONTHS ENDED FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2023 DECEMBER 31, 2022 OUR OUR NONCONTROLLING SHARE OF NONCONTROLLING SHARE OF (1) (1) INTERESTS JOINT VENTURES INTERESTS JOINT VENTURES REVENUE: Lease income $(56,717) $1,387,
Slide 44: Non-GAAP Pro-Rata Financial Information: Balance Sheet
NON-GAAP PRO-RATA FINANCIAL INFORMATION (In thousands) AS OF DECEMBER 31, 2023 AS OF DECEMBER 31, 2022 OUR OUR NONCONTROLLING SHARE OF NONCONTROLLING SHARE OF INTERESTS JOINT VENTURES INTERESTS JOINT VENTURES ASSETS: Investment properties, at cost $(559,508) $10,317,194 $(521,145) $10,218,172 Less –