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Simon Property Group Reports Strong Operational Performance, Raises Dividend

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Simon, a global leader in premier shopping, dining and entertainment destinations, recently revealed q2 numbers and according to David Simon, chairman and CEO, it was an excellent quarter for the company, with strong financial and operational performance.

Simon also pointed out that the company successfully opened its fourth outlet center in Canada.  “Based upon our results to date and expectations for the remainder of 2018, today, we raised our quarterly dividend and are again increasing our full-year 2018 guidance,” he said.

According to analyst firm Mizuho Securities USA LLC, they expect leasing spreads to remain at or below recent levels given still tenuous pricing power.

Some of the key numbers in the q2 report are as follows:

Results for the Quarter
  • Net income attributable to common stockholders was $547.0 million, or $1.77 per diluted share, as compared to $382.0 million, or $1.23 per diluted share, in the prior year period. Results for the second quarter 2017 included a charge of $0.36 per diluted share related to the early redemption of certain senior notes of Simon Property Group, L.P.
  • Funds from Operations (“FFO”) was $1.061 billion, or $2.98 per diluted share, as compared to $884.7 million, or $2.47 per diluted share, in the prior year period, a 20.6% increase. FFO in the second quarter 2017 includes the aforementioned charge related to the redemption of certain of our senior notes.
Results for the Six Months
  • Net income attributable to common stockholders was $1.168 billion, or $3.77 per diluted share, as compared to $859.7 million, or $2.75 per diluted share, in the prior year period. Results for the six months ended 2018 include net gains of $144.9 million, or $0.41 per diluted share, primarily related to disposition activity. Results for the six months ended 2017 include the $0.36 per diluted share charge on the extinguishment of debt.
  • FFO was $2.087 billion, or $5.85 per diluted share, as compared to $1.870 billion, or $5.20 per diluted share, in the prior year period, a 12.5% increase. FFO for the six months ended 2017 includes the aforementioned charge on the extinguishment of debt.
U.S. Malls and Premium Outlets Operating Statistics
  • Reported retailer sales per square foot for the trailing 12-months ended June 30, 2018 was $646, an increase of 4.6%.
  • Occupancy was 94.7% at June 30, 2018.
  • Base minimum rent per square foot was $53.84 at June 30, 2018, an increase of 3.3% compared to the prior year period.
  • Leasing spread per square foot for the trailing 12-months ended June 30, 2018 was $7.32, an increase of 10.7%.
Portfolio Net Operating Income (“NOI”) and Comparable Property NOI

Total portfolio NOI growth for the six months ended June 30, 2018 was 4.5%.  Total portfolio NOI includes comparable property NOI, NOI from new development, redevelopment, expansion and acquisitions, NOI from international properties and our share of NOI from investments.  Comparable property NOI growth for the six months ended June 30, 2018 was 2.3%.


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