| CONTACTS: | ||
| Shelly Doran | 317.685.7330 Investors | |
| Les Morris | 317.263.7711 Media |
FOR IMMEDIATE RELEASE
SIMON PROPERTY GROUP ANNOUNCES THIRD QUARTER RESULTS AND QUARTERLY DIVIDENDS
Indianapolis, Indiana—October 29, 2007…Simon Property Group, Inc. (the "Company" or "Simon") (NYSE:SPG) today announced results for the quarter ended September 30, 2007:
| |
As of September 30, 2007(4) |
As of September 30, 2006 |
Change |
|||||
|---|---|---|---|---|---|---|---|---|
| Occupancy | ||||||||
| Regional Malls(1) | 92.7 | % | 92.5 | % | 20 basis point increase | |||
| Premium Outlet Centers®(2) | 99.6 | % | 99.3 | % | 30 basis point increase | |||
| Community/Lifestyle Centers(2) | 92.8 | % | 90.7 | % | 210 basis point increase | |||
Comparable Sales per Sq. Ft. |
||||||||
| Regional Malls(3) | $ | 491 | $ | 474 | 3.6% increase | |||
| Premium Outlet Centers(2) | $ | 499 | $ | 462 | 8.0% increase | |||
Average Rent per Sq. Ft. |
||||||||
| Regional Malls(1) | $ | 36.92 | $ | 35.23 | 4.8% increase | |||
| Premium Outlet Centers(2) | $ | 25.45 | $ | 24.05 | 5.8% increase | |||
| Community/Lifestyle Centers(2) | $ | 12.15 | $ | 11.69 | 3.9% increase | |||
65
Dividends
Today the Company announced a quarterly common stock dividend of $0.84 per share. This dividend will be paid on November 30, 2007 to stockholders of record on November 16, 2007.
The Company also declared dividends on its two outstanding public issues of preferred stock:
2007 Guidance
Today the Company announced that it expects to achieve at least the high end of its previously updated guidance range of $5.83 to $5.88 per share for diluted FFO for the year ending December 31, 2007. The Company's original guidance for 2007 diluted FFO was a range of $5.70 to $5.83 per share. The Company expects diluted net income available to common stockholders for 2007 to be approximately $2.13 per share.
The following table provides the reconciliation of estimated diluted net income available to common stockholders per share to estimated diluted FFO per share.
| For the year ending December 31, 2007 | ||||
Estimated diluted net income available to common stockholders per share |
$ |
2.13 |
||
Depreciation and amortization including our share of joint ventures |
4.15 |
|||
Gain on sale of assets and interests in unconsolidated entities, net |
(0.29 |
) |
||
Impact of additional dilutive securities |
(0.11 |
) |
||
Estimated diluted FFO per share |
$ |
5.88 |
||
U.S. Development Activity
The Company continues construction on:
66
International Activity
Recent international activities include:
Kobe-Sanda Premium Outlets was developed by Chelsea Japan Co., Ltd., a joint venture of Simon Property Group (40% interest), Mitsubishi Estate Co., Ltd. and Sojitz Corporation (each 30%), and brings the joint venture's operating portfolio of Premium Outlet Centers to 1.6 million square feet of gross leasable area.
The center is the joint development of the Lamaro Group, a major Rome-based construction and development organization, and Gallerie Commerciali Italia ("GCI"), Simon's Italian joint venture partnership with Groupe Auchan. GCI owns 40% of this project.
Development projects:
67
Dispositions
During the quarter, the Company continued its program to divest non-core assets in the U.S. with the disposition of four properties:
On July 5th the Company's Simon Ivanhoe joint venture completed the sale of five non-core assets in Poland.
The net gain from these dispositions was $82.2 million.
Financing Activity
On August 22nd, the Company announced the syndication of a senior loan facility for The Mills Limited Partnership ("TMLP"), an entity owned by SPG-FCM Ventures, LLC (a joint venture between a Simon subsidiary and funds managed by Farallon Capital Management, L.L.C.). The facility was initially closed for $925 million in June of 2007 by JPMorgan Chase and Bank of America, Joint Arrangers and Joint Book Managers, and included a $50 million revolving credit facility.
As part of the syndication, the senior loan facility was increased to $1.025 billion, consisting of a $975 million senior term loan and a $50 million revolving credit facility. The facility matures in June 2009 and contains three, one-year extensions, at TMLP's option. The interest rate for the facility is LIBOR plus 125 basis points.
On October 4th, the Company announced the successful implementation of the $500 million accordion feature in its existing unsecured corporate credit facility, thereby increasing the Company's revolving borrowing capacity from $3.0 billion to $3.5 billion. The expanded credit facility includes a larger $875 million multi-currency tranche for Euro, Yen and Sterling borrowings. The facility will mature in January 2010 and contains a one-year extension at the Company's sole option. The base interest rate on the Company's facility is currently LIBOR plus 37.5 basis points.
On October 2nd, the Company announced the completion of the redemption of all 3,000,000 of the outstanding shares of its 7.89% Series G Cumulative Step-Up Premium Rate Preferred Stock. The Series G Preferred was redeemed at a redemption price of $50.00 per share plus accrued and unpaid distributions to the redemption date, or a total of $50.011 per share. The Company sold a new issue of preferred stock to an institutional investor in a private transaction and used the proceeds to pay the aggregate redemption price.
Conference Call
The Company will provide an online simulcast of its quarterly conference call at www.simon.com (Investor Relations tab), www.earnings.com, and www.streetevents.com. To listen to the live call, please go to any of these websites at least fifteen minutes prior to the call to register, download and install any necessary audio software. The call will begin at 11:00 a.m. Eastern Daylight Time today, October 29, 2007. An online replay will be available for approximately 90 days at www.simon.com, www.earnings.com, and www.streetevents.com. A fully searchable podcast of the conference call will also be available at www.REITcafe.com shortly after completion of the call.
68
Supplemental Materials
The Company will publish a supplemental information package which will be available at www.simon.com in the Investor Relations section, Financial Information tab. It will also be furnished to the SEC as part of a current report on Form 8-K. If you wish to receive a copy via mail or email, please call 800-461-3439.
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 our expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Those risks and uncertainties include, but are not limited to: the Company's ability to meet debt service requirements, the availability of financing, changes in the Company's credit rating, changes in market rates of interest and foreign exchange rates for foreign currencies, the ability to hedge interest rate risk, risks associated with the acquisition, development and expansion of properties, general risks related to retail real estate, the liquidity of real estate investments, environmental liabilities, international, national, regional and local economic climates, changes in market rental rates, trends in the retail industry, relationships with anchor tenants, the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, risks relating to joint venture properties, costs of common area maintenance, competitive market forces, risks related to international activities, insurance costs and coverage, impact of terrorist activities, inflation and maintenance of REIT status. 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 that could cause the Company's actual results to differ materially from the forward-looking statements that the Company makes. The Company may update that discussion in its periodic reports, but otherwise 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.
Funds from Operations ("FFO")
The Company considers FFO a key measure of its operating performance that is not specifically defined by accounting principles generally accepted in the United States ("GAAP"). The Company believes that FFO is helpful to investors because it is a widely recognized measure of the performance of real estate investment trusts ("REITs") and provides a relevant basis for comparison among REITs. The Company determines FFO in accordance with the definition set forth by the National Association of Real Estate Investment Trusts ("NAREIT").
About Simon
Simon Property Group, Inc. is an S&P 500 company and the largest public U.S. real estate company. Simon is a fully integrated real estate company which operates from five retail real estate platforms: regional malls, Premium Outlet Centers®, The Mills®, community/lifestyle centers and international properties. It currently owns or has an interest in 378 properties comprising 257 million square feet of gross leasable area in North America, Europe and Asia. The Company is headquartered in Indianapolis, Indiana and employs more than 5,000 people worldwide. Simon Property Group, Inc. is publicly traded on the NYSE under the symbol SPG. For further information, visit the Company's website at www.simon.com.
69
SIMON
Consolidated Statements of Operations
Unaudited
(In thousands)
| |
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
2007 |
2006 |
2007 |
2006 |
||||||||||
| REVENUE: | ||||||||||||||
| Minimum rent | $ | 536,377 | $ | 500,589 | $ | 1,569,328 | $ | 1,474,503 | ||||||
| Overage rent | 27,049 | 21,931 | 63,575 | 53,287 | ||||||||||
| Tenant reimbursements | 262,183 | 233,278 | 730,780 | 681,090 | ||||||||||
| Management fees and other revenues | 34,952 | 20,780 | 73,369 | 60,348 | ||||||||||
| Other income | 46,584 | 42,158 | 178,166 | 135,895 | ||||||||||
| Total revenue | 907,145 | 818,736 | 2,615,218 | 2,405,123 | ||||||||||
EXPENSES: |
||||||||||||||
| Property operating | 121,698 | 118,185 | 343,047 | 331,389 | ||||||||||
| Depreciation and amortization | 224,662 | 211,390 | 670,544 | 632,200 | ||||||||||
| Real estate taxes | 77,939 | 73,427 | 236,184 | 225,636 | ||||||||||
| Repairs and maintenance | 26,322 | 23,910 | 84,073 | 74,704 | ||||||||||
| Advertising and promotion | 22,192 | 17,718 | 61,486 | 55,661 | ||||||||||
| Provision for credit losses | 3,134 | 393 | 5,100 | 4,853 | ||||||||||
| Home and regional office costs | 32,976 | 32,703 | 95,945 | 95,691 | ||||||||||
| General and administrative | 4,887 | 4,422 | 14,905 | 13,920 | ||||||||||
| Other | 14,636 | 15,264 | 42,718 | 40,492 | ||||||||||
| Total operating expenses | 528,446 | 497,412 | 1,554,002 | 1,474,546 | ||||||||||
OPERATING INCOME |
378,699 |
321,324 |
1,061,216 |
930,577 |
||||||||||
| Interest expense | (238,155 | ) | (206,195 | ) | (704,287 | ) | (611,010 | ) | ||||||
| Minority interest in income of consolidated entities | (3,052 | ) | (3,154 | ) | (9,098 | ) | (7,512 | ) | ||||||
| Income tax expense of taxable REIT subsidiaries | (648 | ) | (2,536 | ) | (1,405 | ) | (7,395 | ) | ||||||
| Income from unconsolidated entities, net | 8,491 | 25,898 | 37,723 | 75,703 | ||||||||||
| Gain on sale of assets and interests in unconsolidated entities, net | 82,197 | 9,457 | 82,697 | 51,406 | ||||||||||
| Limited Partners' interest in the Operating Partnership | (42,897 | ) | (24,951 | ) | (84,223 | ) | (74,429 | ) | ||||||
| Preferred distributions of the Operating Partnership | (5,382 | ) | (6,893 | ) | (16,218 | ) | (20,647 | ) | ||||||
| Income from continuing operations | 179,253 | 112,950 | 366,405 | 336,693 | ||||||||||
| Discontinued operations, net of Limited Partners' interest | (26 | ) | 45 | (171 | ) | 89 | ||||||||
| Gain on sale of discontinued operations, net of Limited Partners' interest | — | — | — | 66 | ||||||||||
| NET INCOME | 179,227 | 112,995 | 366,234 | 336,848 | ||||||||||
Preferred dividends |
(14,290 |
) |
(18,403 |
) |
(42,999 |
) |
(55,371 |
) |
||||||
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 164,937 | $ | 94,592 | $ | 323,235 | $ | 281,477 | ||||||
| PER SHARE DATA: | ||||||||||||||
| Basic Earnings per Common Share | $ | 0.74 | $ | 0.43 | $ | 1.45 | $ | 1.27 | ||||||
| Diluted Earnings per Common Share | $ | 0.74 | $ | 0.43 | $ | 1.45 | $ | 1.27 | ||||||
70
SIMON
Consolidated Balance Sheets
Unaudited
(In thousands, except as noted)
| |
September 30, 2007 |
December 31, 2006 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ASSETS: | ||||||||||
| Investment properties, at cost | $ | 24,138,267 | $ | 22,863,963 | ||||||
| Less—accumulated depreciation | 5,139,607 | 4,606,130 | ||||||||
| 18,998,660 | 18,257,833 | |||||||||
| Cash and cash equivalents | 389,968 | 929,360 | ||||||||
| Tenant receivables and accrued revenue, net | 370,443 | 380,128 | ||||||||
| Investment in unconsolidated entities, at equity | 1,996,540 | 1,526,235 | ||||||||
| Deferred costs and other assets | 1,133,175 | 990,899 | ||||||||
| Notes receivable from related parties | 769,580 | — | ||||||||
| Total assets | $ | 23,658,366 | $ | 22,084,455 | ||||||
| LIABILITIES: | ||||||||||
| Mortgages and other indebtedness | $ | 17,266,451 | $ | 15,394,489 | ||||||
| Accounts payable, accrued expenses, intangibles, and deferred revenue | 1,131,257 | 1,109,190 | ||||||||
| Cash distributions and losses in partnerships and joint ventures, at equity | 231,972 | 227,588 | ||||||||
| Other liabilities, minority interest and accrued dividends | 182,019 | 178,250 | ||||||||
| Total liabilities | 18,811,699 | 16,909,517 | ||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||
| LIMITED PARTNERS' INTEREST IN THE OPERATING PARTNERSHIP | 761,238 | 837,836 | ||||||||
| LIMITED PARTNERS' PREFERRED INTEREST IN THE OPERATING PARTNERSHIP | 308,393 | 357,460 | ||||||||
| STOCKHOLDERS' EQUITY | ||||||||||
| CAPITAL STOCK OF SIMON PROPERTY GROUP, INC. (750,000,000 total shares authorized, $.0001 par value, 237,996,000 shares of excess common stock): | ||||||||||
| All series of preferred stock, 100,000,000 shares authorized, 17,812,029 and 17,578,701 issued and outstanding, respectively, and with liquidation values of $890,601 and $878,935, respectively | 897,197 | 884,620 | ||||||||
| Common stock, $.0001 par value, 400,000,000 shares authorized, 227,691,621 and 225,797,566 issued and outstanding, respectively | 23 | 23 | ||||||||
| Class B common stock, $.0001 par value, 12,000,000 shares authorized, 8,000 issued and outstanding | — | — | ||||||||
| Class C common stock, $.0001 par value, 4,000 shares authorized, issued and outstanding | — | — | ||||||||
| Capital in excess of par value | 5,051,664 | 5,010,256 | ||||||||
| Accumulated deficit | (1,979,517 | ) | (1,740,897 | ) | ||||||
| Accumulated other comprehensive income | 21,275 | 19,239 | ||||||||
| Common stock held in treasury at cost, 4,697,332 and 4,378,495 shares, respectively | (213,606 | ) | (193,599 | ) | ||||||
| Total stockholders' equity | 3,777,036 | 3,979,642 | ||||||||
| Total liabilities and stockholders' equity | $ | 23,658,366 | $ | 22,084,455 | ||||||
71
SIMON
Joint Venture Statements of Operations
Unaudited
(In thousands)
| |
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
2007 |
2006 |
2007 |
2006 |
|||||||||||
| Revenue: | |||||||||||||||
| Minimum rent | $ | 466,933 | $ | 262,417 | $ | 1,184,208 | $ | 771,054 | |||||||
| Overage rent | 26,448 | 19,094 | 64,090 | 51,518 | |||||||||||
| Tenant reimbursements | 220,621 | 136,080 | 572,820 | 386,064 | |||||||||||
| Other income | 47,841 | 40,138 | 136,707 | 107,979 | |||||||||||
| Total revenue | $ | 761,843 | $ | 457,729 | $ | 1,957,825 | $ | 1,316,615 | |||||||
Operating Expenses: |
|||||||||||||||
| Property operating | 165,419 | 98,716 | 407,021 | 267,767 | |||||||||||
| Depreciation and amortization | 160,403 | 79,035 | 400,234 | 230,018 | |||||||||||
| Real estate taxes | 60,073 | 34,073 | 160,989 | 99,194 | |||||||||||
| Repairs and maintenance | 24,672 | 20,065 | 77,691 | 60,549 | |||||||||||
| Advertising and promotion | 14,997 | 11,029 | 38,037 | 24,569 | |||||||||||
| Provision for credit losses | 7,416 | 2,389 | 14,139 | 3,821 | |||||||||||
| Other | 35,494 | 26,265 | 103,853 | 86,417 | |||||||||||
| Total operating expenses | 468,474 | 271,572 | 1,201,964 | 772,335 | |||||||||||
| Operating Income | $ | 293,369 | $ | 186,157 | $ | 755,861 | $ | 544,280 | |||||||
Interest expense |
(248,588 |
) |
(105,417 |
) |
(594,093 |
) |
(307,150 |
) |
|||||||
| Income from unconsolidated entities | 545 | 480 | 458 | 719 | |||||||||||
| Gain on sale of assets | 198,135 | — | 193,376 | 94 | |||||||||||
| Income from Continuing Operations | $ | 243,461 | $ | 81,220 | $ | 355,602 | $ | 237,943 | |||||||
| Income from consolidated joint venture interests(A) | (28 | ) | 4,058 | 2,562 | 9,565 | ||||||||||
| Income from discontinued joint venture interests(B) | — | 129 | 176 | 631 | |||||||||||
| Gain (loss) on disposal or sale of discontinued operations, net | — | (329 | ) | 19 | 20,375 | ||||||||||
| Net Income | $ | 243,433 | $ | 85,078 | $ | 358,359 | $ | 268,514 | |||||||
| Third-Party Investors' Share of Net Income | $ | 133,705 | $ | 51,049 | $ | 194,377 | $ | 160,488 | |||||||
| Our Share of Net Income | 109,728 | 34,029 | 163,982 | 108,026 | |||||||||||
| Amortization of Excess Investment | (11,014 | ) | (12,164 | ) | (36,036 | ) | (37,056 | ) | |||||||
| Income from Beneficial Interests and Other, Net | — | 4,033 | — | 15,309 | |||||||||||
| Write-off of Investment Related to Properties Sold | — | 135 | — | (2,842 | ) | ||||||||||
| Our Share of Net Gain Related to Properties Sold | (90,223 | ) | (135 | ) | (90,223 | ) | (7,734 | ) | |||||||
| Income from Unconsolidated Entities and Beneficial Interests, Net | 8,491 | 25,898 | 37,723 | 75,703 | |||||||||||
72
SIMON
Joint Venture Balance Sheets
Unaudited
(In thousands)
| |
September 30, 2007 |
December 31, 2006 |
|||||
|---|---|---|---|---|---|---|---|
| Assets: | |||||||
| Investment properties, at cost | $ | 20,913,688 | $ | 10,669,967 | |||
| Less—accumulated depreciation | 3,077,050 | 2,206,399 | |||||
| 17,836,638 | 8,463,568 | ||||||
Cash and cash equivalents |
680,139 |
354,620 |
|||||
| Tenant receivables | 346,567 | 258,185 | |||||
| Investment in unconsolidated entities | 228,871 | 176,400 | |||||
| Deferred costs and other assets | 847,169 | 307,468 | |||||
| Total assets | $ | 19,939,384 | $ | 9,560,241 | |||
Liabilities and Partners' Equity: |
|||||||
| Mortgages and other indebtedness | $ | 16,049,363 | $ | 8,055,855 | |||
| Accounts payable, accrued expenses, and deferred revenue | 987,600 | 513,472 | |||||
| Other liabilities | 1,008,096 | 255,633 | |||||
| Total liabilities | 18,045,059 | 8,824,960 | |||||
| Preferred units | 67,450 | 67,450 | |||||
| Partners' equity | 1,826,875 | 667,831 | |||||
| Total liabilities and partners' equity | $ | 19,939,384 | $ | 9,560,241 | |||
Our Share of: |
|||||||
| Total assets | $ | 8,150,966 | $ | 4,113,051 | |||
| Partners' equity | $ | 994,310 | $ | 380,150 | |||
| Add: Excess Investment(C) | 770,258 | 918,497 | |||||
| Our net Investment in Joint Ventures | $ | 1,764,568 | $ | 1,298,647 | |||
| Mortgages and other indebtedness | $ | 6,416,329 | $ | 3,472,228 | |||
73
SIMON
Footnotes to Financial Statements
Unaudited
Notes:
74
SIMON
Reconciliation of Net Income to FFO(1)
Unaudited
(In thousands, except as noted)
| |
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
2007 |
2006 |
2007 |
2006 |
||||||||||
| Net Income(2)(3)(4)(5) | $ | 179,227 | $ | 112,995 | $ | 366,234 | $ | 336,848 | ||||||
| Adjustments to Net Income to Arrive at FFO: | ||||||||||||||
| Limited Partners' interest in the Operating Partnership and preferred distributions of the Operating Partnership | 48,279 | 31,844 | 100,441 | 95,076 | ||||||||||
| Limited Partners' interest in discontinued operations | (6 | ) | 11 | (44 | ) | 23 | ||||||||
| Depreciation and amortization from consolidated properties and discontinued operations | 220,984 | 209,023 | 660,325 | 633,013 | ||||||||||
| Simon's share of depreciation and amortization from unconsolidated entities | 74,397 | 52,477 | 205,697 | 155,555 | ||||||||||
| Gain on sales of assets and interests in unconsolidated entities and discontinued operations, net of Limited Partners' interest | (82,197 | ) | (9,457 | ) | (82,697 | ) | (51,472 | ) | ||||||
| Minority interest portion of depreciation and amortization | (2,302 | ) | (2,091 | ) | (6,595 | ) | (6,222 | ) | ||||||
| Preferred distributions and dividends | (19,672 | ) | (25,296 | ) | (59,217 | ) | (76,018 | ) | ||||||
| FFO of the Simon Portfolio | $ | 418,710 | $ | 369,506 | $ | 1,184,144 | $ | 1,086,803 | ||||||
| Per Share Reconciliation: |
||||||||||||||
| Diluted net income available to common stockholders per share | $ | 0.74 | $ | 0.43 | $ | 1.45 | $ | 1.27 | ||||||
| Adjustments to net income to arrive at FFO: | ||||||||||||||
| Depreciation and amortization from consolidated properties and Simon's share of depreciation and amortization from unconsolidated entities, net of minority interest portion of depreciation and amortization | 1.04 | 0.92 | 3.05 | 2.80 | ||||||||||
| Gain on sales of assets and interests in unconsolidated entities and discontinued operations, net of Limited Partners' interest | (0.29 | ) | (0.03 | ) | (0.29 | ) | (0.18 | ) | ||||||
| Impact of additional dilutive securities for FFO per share | (0.03 | ) | (0.02 | ) | (0.07 | ) | (0.07 | ) | ||||||
| Diluted FFO per share | $ | 1.46 | $ | 1.30 | $ | 4.14 | $ | 3.82 | ||||||
Details for per share calculations: |
||||||||||||||
| FFO of the Simon Portfolio | $ | 418,710 | $ | 369,506 | $ | 1,184,144 | $ | 1,086,803 | ||||||
| Adjustments for dilution calculation: | ||||||||||||||
| Impact of preferred stock and preferred unit conversions and option exercises(6) | 12,843 | 14,092 | 38,731 | 42,407 | ||||||||||
| Diluted FFO of the Simon Portfolio | 431,553 | 383,598 | 1,222,875 | 1,129,210 | ||||||||||
| Diluted FFO allocable to unitholders | (84,635 | ) | (75,785 | ) | (240,259 | ) | (223,432 | ) | ||||||
| Diluted FFO allocable to common stockholders | $ | 346,918 | $ | 307,813 | $ | 982,616 | $ | 905,778 | ||||||
| Basic weighted average shares outstanding | 223,103 | 221,198 | 222,993 | 220,925 | ||||||||||
| Adjustments for dilution calculation: | ||||||||||||||
| Effect of stock options | 746 | 872 | 814 | 911 | ||||||||||
| Impact of Series C preferred unit conversion | 89 | 1,041 | 136 | 1,050 | ||||||||||
| Impact of Series I preferred unit conversion | 2,414 | 3,261 | 2,510 | 3,270 | ||||||||||
| Impact of Series I preferred stock conversion | 11,081 | 10,724 | 11,052 | 10,796 | ||||||||||
| Diluted weighted average shares outstanding | 237,433 | 237,096 | 237,505 | 236,952 | ||||||||||
| Weighted average limited partnership units outstanding | 57,925 | 58,375 | 58,073 | 58,450 | ||||||||||
| Diluted weighted average shares and units outstanding | 295,358 | 295,471 | 295,578 | 295,402 | ||||||||||
| Basic FFO per share | $ | 1.49 | $ | 1.32 | $ | 4.21 | $ | 3.89 | ||||||
| Percent Increase | 12.9 | % | 8.2 | % | ||||||||||
| Diluted FFO per share | $ | 1.46 | $ | 1.30 | $ | 4.14 | $ | 3.82 | ||||||
| Percent Increase | 12.3 | % | 8.4 | % | ||||||||||
75
SIMON
Footnotes to Reconciliation of Net Income to FFO
Unaudited
Notes:
As defined by NAREIT, FFO is 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 sales of real estate, 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. The Company has adopted NAREIT's clarification of the definition of FFO that requires it to include the effects of nonrecurring items not classified as extraordinary, cumulative effect of accounting change or resulting from the sale of depreciable real estate. 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.
76