| CONTACTS: | ||
| Shelly Doran | 317.685.7330 Investors | |
| Les Morris | 317.263.7711 Media |
FOR IMMEDIATE RELEASE
SIMON PROPERTY GROUP ANNOUNCES FOURTH QUARTER RESULTS AND
QUARTERLY DIVIDENDS AND PROVIDES 2009 GUIDANCE
Indianapolis, Indiana—January 30, 2009...Simon Property Group, Inc. (the "Company" or "Simon") (NYSE:SPG) today announced results for the quarter and twelve months ended December 31, 2008:
60
| |
As of December 31, 2008 |
As of December 31, 2007 |
Change | |||||
|---|---|---|---|---|---|---|---|---|
| Occupancy | ||||||||
| Regional Malls(2) | 92.4 | % | 93.5 | % | 110 basis point decrease | |||
| Premium Outlet Centers®(3) | 98.9 | % | 99.7 | % | 80 basis point decrease | |||
Comparable Sales per Sq. Ft. |
||||||||
| Regional Malls(4) | $ | 470 | $ | 491 | 4.3% decrease | |||
| Premium Outlet Centers(3) | $ | 513 | $ | 504 | 1.8% increase | |||
Average Rent per Sq. Ft. |
||||||||
| Regional Malls(2) | $ | 39.49 | $ | 37.09 | 6.5% increase | |||
| Premium Outlet Centers(3) | $ | 27.65 | $ | 25.67 | 7.7% increase | |||
"We are very pleased to report such strong performance, especially in these difficult economic times. It is a testament to our high quality portfolio and strong balance sheet that we delivered FFO growth of 8.8% for the year," said David Simon, Chairman and Chief Executive Officer. "We recognized well over a year ago that the economy was deteriorating and adopted aggressive cost control measures, significantly reduced our development spending, and enhanced our liquidity position. The retail environment has been and will continue to be challenging in the upcoming months, however, we are experienced in working through difficult economic cycles. We believe we are positioned to deliver earnings and FFO growth in 2009.
Our Board of Directors has made the prudent decision to pay our quarterly dividend of $0.90 per share in a combination of 10% cash and 90% common stock. We believe this change in composition will fortify one of the industry's strongest balance sheets (rated A-/A3) as it will permit us to retain over $925 million of cash if adopted for all of 2009. This decision is a reflection of our conservative stance on capital allocation and liability management and is not in response to the current retail operating environment."
Today the Company announced that its Board of Directors approved the declaration of a quarterly common stock dividend of $0.90 per share, consisting of a combination of cash and shares of the Company's common stock. The Company intends that the aggregate cash component of the dividend will not exceed 10% in the aggregate, or $0.09 per share. The dividend is payable on March 18, 2009 to stockholders of record on February 12, 2009.
Paying 90% of the 2009 dividend in shares of SPG common stock allows SPG to satisfy its REIT taxable income distribution requirement while enhancing its already considerable financial flexibility and balance sheet strength.
In accordance with the provisions of IRS Revenue Procedure 2008-68, stockholders may elect to receive payment of the dividend all in cash or all in common shares. To the extent that more than 10% of cash is elected, the cash portion will be prorated. Stockholders who elect to receive the dividend in
61
cash will receive a cash payment of at least $0.09 per share. Stockholders who do not make an election will receive 10% in cash and 90% in common stock.
The Company expects the dividend to be a taxable dividend to its stockholders, without regard to whether a particular stockholder receives the dividend in the form of cash or shares, and reserves the right to pay the dividend entirely in cash.
The number of shares issued as a result of the dividend will be calculated based on the volume weighted average trading prices of the Company's common stock on March 11, March 12 and March 13, 2009.
An information letter and election form will be mailed to stockholders of record promptly after February 12, 2009. The properly completed election form to receive cash or common shares must be received by the Company's transfer agent prior to 5:00 p.m. Eastern Standard Time on March 10, 2009. Registered stockholders with questions regarding the dividend election may call BNY Mellon Shareowner Services, the Company's transfer agent, at (800) 454-9768. If your shares are held through a bank, broker or nominee, and you have questions regarding the dividend election please contact such bank, broker or nominee, who will also be responsible for distributing to you the letter and election form and submitting the election form on your behalf.
The Company also declared dividends on its two outstanding public issues of preferred stock:
After giving effect to the estimated impact of paying up to 90% of the Company's 2009 common stock dividends in common stock, the Company estimates that diluted FFO will be within a range of $6.40 to $6.60 per share for the year ending December 31, 2009, and diluted net income will be within a range of $1.95 to $2.15 per share.
The Company's 2009 guidance estimates are based upon its internal budgeting and planning process and management's view of current market and economic conditions, including those in the retail real estate business. The Company's expectations also reflect the weaker retail environment and weakened state of the U.S. economy, as well as the current dislocation in the U.S. capital markets.
The 2009 guidance assumes comparable property NOI growth for the following operating portfolios:
| Regional Malls | Flat to 1.0% | |
Premium Outlet Centers |
3.0% to 5.0% |
The 2009 guidance assumes an interest rate environment that is consistent with the current forward yield curves for one month LIBOR and the 10 Year U.S. Treasury note and makes certain assumptions on debt spreads. The guidance assumes no future acquisition or disposition activities other than the impact in 2009 from 2008 activity.
This guidance is a forward-looking statement and is subject to the risks and other factors described elsewhere in this release.
The following table provides the reconciliation of the range of estimated diluted net income available to common stockholders per share to estimated diluted FFO per share.
62
For the year ending December 31, 2009
| |
Low End | High End | |||||
|---|---|---|---|---|---|---|---|
| Estimated diluted net income available to common stockholders per share | $ | 1.95 | $ | 2.15 | |||
Depreciation and amortization including our share of joint ventures |
4.56 |
4.56 |
|||||
Impact of additional dilutive securities |
(0.11 |
) |
(0.11 |
) |
|||
Estimated diluted FFO per share |
$ |
6.40 |
$ |
6.60 |
|||
During the fourth quarter, the Company completed seven asset financings, generating $583.9 million of proceeds (Simon's share of proceeds was $313.2 million). The financings were completed with a weighted average term of 5.7 years and at an average interest rate of 5.9% on the fixed rate financings and a rate at year-end of 2.4% on the floating rate loans.
As of December 31, 2008, the Company had approximately $1.1 billion of cash on hand, including its share of joint ventures, and over $2.4 billion of available capacity on its revolving credit facility.
U.S. New Development and Redevelopment Activity
On November 13th, the Company announced the opening of Jersey Shore Premium Outlets. Located in Tinton Falls, Jersey Shore Premium Outlets contains 435,000 square feet of gross leasable area and 120 designer and name-brand outlet stores. The center is currently 92% leased to tenants including Ann Taylor, BCBG Max Azria, Banana Republic, Brooks Brothers, Burberry, Calvin Klein, Cole Haan, Elie Tahari, Geox, Guess, J.Crew, Juicy Couture, Kate Spade, Kenneth Cole, Lucky Brand, Michael Kors, Nike, Sony, Theory and Tommy Hilfiger.
The Company continues construction on the following development projects:
During the fourth quarter, the Company completed significant redevelopment projects at Northshore Mall in the Boston suburb of Peabody (with Nordstrom opening this March), Ross Park Mall in Pittsburgh, and Tacoma Mall in Tacoma, Washington as well as the expansion of Orlando Premium Outlets in Orlando, Florida.
Construction continues on two significant redevelopment projects:
63
On October 16th, the Company opened Sendai-Izumi Premium Outlets, the seventh Premium Outlet Center in Japan. The 172,000 square foot first phase of the project is 100% leased to 80 tenants including Beams, Brooks Brothers, Bose, Coach, Hush Puppies, Jill Stuart, Kipling, Laundry, Levi's, Miss Sixty, OshKosh B'Gosh, Pleats Please Issey Miyake, St. John, T-Fal, Tasaki, United Arrows, as well as the first outlet stores in Japan for PLS+T and Ray Ban. Simon owns 40% of this property.
Construction continues on the following international development projects:
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 Standard Time (New York time) today, January 30, 2009. 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.
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.
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, uncertainties and other factors. Such factors include, but are not limited to: the Company's ability to meet debt service requirements, the availability and terms 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, expansion, leasing and management of properties, general risks related to retail real estate, the liquidity
64
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, terrorist activities, changes in economic and market conditions and maintenance of our status as a real estate investment trust. 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. 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.
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").
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 386 properties comprising 263 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.
65
SIMON
Consolidated Statements of Operations
Unaudited
(In thousands)
| |
For the Three Months Ended December 31, |
For the Twelve Months Ended December 31, |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
2008 | 2007 | 2008 | 2007 | ||||||||||
REVENUE: |
||||||||||||||
Minimum rent |
$ | 607,100 | $ | 585,385 | $ | 2,291,919 | $ | 2,154,713 | ||||||
Overage rent |
39,440 | 46,428 | 100,222 | 110,003 | ||||||||||
Tenant reimbursements |
289,290 | 292,384 | 1,065,957 | 1,023,164 | ||||||||||
Management fees and other revenues |
31,222 | 40,371 | 132,471 | 113,740 | ||||||||||
Other income |
62,264 | 71,013 | 192,586 | 249,179 | ||||||||||
Total revenue |
1,029,316 | 1,035,581 | 3,783,155 | 3,650,799 | ||||||||||
EXPENSES: |
||||||||||||||
Property operating |
103,687 | 111,463 | 455,874 | 454,510 | ||||||||||
Depreciation and amortization |
268,902 | 235,092 | 969,477 | 905,636 | ||||||||||
Real estate taxes |
80,586 | 77,127 | 334,657 | 313,311 | ||||||||||
Repairs and maintenance |
32,621 | 36,151 | 107,879 | 120,224 | ||||||||||
Advertising and promotion |
32,729 | 32,854 | 96,783 | 94,340 | ||||||||||
Provision for credit losses |
6,668 | 4,462 | 24,035 | 9,562 | ||||||||||
Home and regional office costs |
36,099 | 40,665 | 144,865 | 136,610 | ||||||||||
General and administrative |
5,555 | 4,682 | 20,987 | 19,587 | ||||||||||
Other |
16,651 | 19,236 | 67,721 | 61,954 | ||||||||||
Total operating expenses |
583,498 | 561,732 | 2,222,278 | 2,115,734 | ||||||||||
OPERATING INCOME |
445,818 |
473,849 |
1,560,877 |
1,535,065 |
||||||||||
Interest expense |
(244,933 | ) | (241,565 | ) | (947,140 | ) | (945,852 | ) | ||||||
Loss on extinguishment of debt |
— | — | (20,330 | ) | — | |||||||||
Minority interest in income of consolidated |
(3,986 | ) | (4,838 | ) | (12,431 | ) | (13,936 | ) | ||||||
Income tax (expense) benefit of taxable REIT subsidiaries |
(2,005 | ) | 12,727 | (3,581 | ) | 11,322 | ||||||||
Income from unconsolidated entities |
19,186 | 397 | 32,246 | 38,120 | ||||||||||
Impairment charge |
(21,172 | ) | (55,061 | ) | (21,172 | ) | (55,061 | ) | ||||||
Gain on sale of assets and interests in unconsolidated entities |
— | 409 | — | 92,044 | ||||||||||
Limited partners' interest in the Operating Partnership |
(36,345 | ) | (34,749 | ) | (107,214 | ) | (120,818 | ) | ||||||
Preferred distributions of the Operating |
(4,201 | ) | (5,362 | ) | (17,599 | ) | (21,580 | ) | ||||||
Income from continuing operations |
152,362 | 145,807 | 463,656 | 519,304 | ||||||||||
Discontinued operations, net of limited partners' interest |
(20 | ) | 78 | (20 | ) | (93 | ) | |||||||
Loss on sale of discontinued operations, net of limited partners' interest |
— | (20,880 | ) | — | (27,972 | ) | ||||||||
NET INCOME |
152,342 | 125,005 | 463,636 | 491,239 | ||||||||||
Preferred dividends |
(7,139 | ) | (12,076 | ) | (41,119 | ) | (55,075 | ) | ||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS |
$ | 145,203 | $ | 112,929 | $ | 422,517 | $ | 436,164 | ||||||
66
SIMON
Per Share Data
Unaudited
| |
For the Three Months Ended December 31, |
For the Twelve Months Ended December 31, |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
2008 | 2007 | 2008 | 2007 | ||||||||||
| Basic Earnings Per Common Share: | ||||||||||||||
| Income from continuing operations | $ | 0.64 | $ | 0.60 | $ | 1.88 | $ | 2.09 | ||||||
| Discontinued operations | — | (0.09 | ) | — | (0.13 | ) | ||||||||
| Net income available to common stockholders | $ | 0.64 | $ | 0.51 | $ | 1.88 | $ | 1.96 | ||||||
| Percentage Change | 25.5 | % | -4.1 | % | ||||||||||
Diluted Earnings Per Common Share: |
||||||||||||||
| Income from continuing operations | $ | 0.64 | $ | 0.60 | $ | 1.87 | $ | 2.08 | ||||||
| Discontinued operations | — | (0.09 | ) | — | (0.13 | ) | ||||||||
| Net income available to common stockholders | $ | 0.64 | $ | 0.51 | $ | 1.87 | $ | 1.95 | ||||||
| Percentage Change | 25.5 | % | -4.1 | % | ||||||||||
67
SIMON
Consolidated Balance Sheets
Unaudited
(In thousands, except as noted)
| |
December 31, 2008 |
December 31, 2007 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|
ASSETS: |
||||||||||
Investment properties, at cost |
$ | 25,205,715 | $ | 24,415,025 | ||||||
Less—accumulated depreciation |
6,184,285 | 5,312,095 | ||||||||
|
19,021,430 | 19,102,930 | ||||||||
Cash and cash equivalents |
773,544 | 501,982 | ||||||||
Tenant receivables and accrued revenue, net |
414,856 | 447,224 | ||||||||
Investment in unconsolidated entities, at equity |
1,663,886 | 1,886,891 | ||||||||
Deferred costs and other assets |
1,202,256 | 1,118,635 | ||||||||
Note receivable from related party |
520,700 | 548,000 | ||||||||
Total assets |
$ | 23,596,672 | $ | 23,605,662 | ||||||
LIABILITIES: |
||||||||||
Mortgages and other indebtedness |
$ | 18,042,532 | $ | 17,218,674 | ||||||
Accounts payable, accrued expenses, intangibles, and deferred revenues |
1,086,248 | 1,251,044 | ||||||||
Cash distributions and losses in partnerships and joint ventures, |
380,730 | 352,798 | ||||||||
Other liabilities, minority interest and accrued dividends |
179,970 | 180,644 | ||||||||
Total liabilities |
19,689,480 | 19,003,160 | ||||||||
COMMITMENTS AND CONTINGENCIES |
||||||||||
LIMITED PARTNERS' INTEREST IN THE OPERATING PARTNERSHIP |
637,140 | 731,406 | ||||||||
LIMITED PARTNERS' PREFERRED INTEREST IN THE OPERATING PARTNERSHIP |
229,869 | 307,713 | ||||||||
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, 8,387,212 and 14,801,884 issued and outstanding, respectively, and with liquidation values of $419,361 and $740,094, respectively |
425,545 | 746,608 | ||||||||
Common stock, $.0001 par value, 400,000,000 shares authorized, 235,691,040 and 227,719,614 issued and outstanding, respectively |
24 | 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, 0 and 4,000 shares authorized, issued and outstanding |
— | — | ||||||||
Capital in excess of par value |
5,410,147 | 5,067,718 | ||||||||
Accumulated deficit |
(2,444,257 | ) | (2,055,447 | ) | ||||||
Accumulated other comprehensive income |
(165,066 | ) | 18,087 | |||||||
Common stock held in treasury at cost, 4,379,396 and 4,697,332 shares, respectively |
(186,210 | ) | (213,606 | ) | ||||||
Total stockholders' equity |
3,040,183 | 3,563,383 | ||||||||
Total liabilities and stockholders' equity |
$ | 23,596,672 | $ | 23,605,662 | ||||||
68
SIMON
Joint Venture Statements of Operations
Unaudited
(In thousands)
| |
For the Three Months Ended December 31, |
For the Twelve Months Ended December 31, |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
2008 | 2007 | 2008 | 2007 | |||||||||||
Revenue: |
|||||||||||||||
Minimum rent |
$ | 521,062 | $ | 498,463 | $ | 1,956,129 | $ | 1,682,671 | |||||||
Overage rent |
58,110 | 55,044 | 130,549 | 119,134 | |||||||||||
Tenant reimbursements |
275,041 | 279,492 | 1,005,638 | 852,312 | |||||||||||
Other income |
54,394 | 64,368 | 199,774 | 201,075 | |||||||||||
Total revenue |
908,607 | 897,367 | 3,292,090 | 2,855,192 | |||||||||||
Operating Expenses: |
|||||||||||||||
Property operating |
176,770 | 173,889 | 671,268 | 580,910 | |||||||||||
Depreciation and amortization |
203,631 | 227,695 | 775,887 | 627,929 | |||||||||||
Real estate taxes |
67,427 | 59,485 | 263,054 | 220,474 | |||||||||||
Repairs and maintenance |
35,187 | 35,826 | 124,272 | 113,517 | |||||||||||
Advertising and promotion |
25,184 | 24,145 | 70,425 | 62,182 | |||||||||||
Provision for credit losses |
9,981 | 8,309 | 24,053 | 22,448 | |||||||||||
Other |
54,053 | 58,717 | 177,298 | 162,570 | |||||||||||
Total operating expenses |
572,233 | 588,066 | 2,106,257 | 1,790,030 | |||||||||||
Operating Income |
336,374 | 309,301 | 1,185,833 | 1,065,162 | |||||||||||
Interest expense |
(242,141 |
) |
(259,214 |
) |
(969,420 |
) |
(853,307 |
) |
|||||||
(Loss) income from unconsolidated entities |
(1,340 | ) | 207 | (5,123 | ) | 665 | |||||||||
Loss on sale of assets |
— | (823 | ) | — | (6,399 | ) | |||||||||
Income from Continuing Operations |
92,893 | 49,471 | 211,290 | 206,121 | |||||||||||
Income from consolidated joint venture interests(A) |
— | — | — | 2,562 | |||||||||||
Income from discontinued joint venture interests(B) |
— | 26 | 47 | 202 | |||||||||||
(Loss) gain on disposal or sale of discontinued operations, net |
— | (15 | ) | — | 198,956 | ||||||||||
Net Income |
$ | 92,893 | $ | 49,482 | $ | 211,337 | $ | 407,841 | |||||||
Third-Party Investors' Share of Net Income |
$ | 60,708 | $ | 38,209 | $ | 132,111 | $ | 232,586 | |||||||
Our Share of Net Income |
32,185 | 11,273 | 79,226 | 175,255 | |||||||||||
Amortization of Excess Investment |
(12,999 | ) | (10,467 | ) | (46,980 | ) | (46,503 | ) | |||||||
Our Share of Net Gain Related to Properties Sold |
— | (409 | ) | — | (90,632 | ) | |||||||||
Income from Unconsolidated Entities, Net |
$ | 19,186 | $ | 397 | $ | 32,246 | $ | 38,120 | |||||||
69
SIMON
Joint Venture Balance Sheets
Unaudited
(In thousands)
| |
December 31, 2008 |
December 31, 2007 |
||||||
|---|---|---|---|---|---|---|---|---|
Assets: |
||||||||
Investment properties, at cost |
$ | 21,472,490 | $ | 21,009,416 | ||||
Less—accumulated depreciation |
3,892,956 | 3,217,446 | ||||||
|
17,579,534 | 17,791,970 | ||||||
Cash and cash equivalents |
805,411 |
747,575 |
||||||
Tenant receivables and accrued revenue, net |
428,322 | 435,093 | ||||||
Investment in unconsolidated entities, at equity |
230,497 | 258,633 | ||||||
Deferred costs and other assets |
594,578 | 713,180 | ||||||
Total assets |
$ | 19,638,342 | $ | 19,946,451 | ||||
Liabilities and Partners' Equity: |
||||||||
Mortgages and other indebtedness |
$ | 16,686,701 | $ | 16,507,076 | ||||
Accounts payable, accrued expenses, intangibles and |
1,070,958 | 972,699 | ||||||
Other liabilities |
982,254 | 825,279 | ||||||
Total liabilities |
18,739,913 | 18,305,054 | ||||||
Preferred units |
67,450 | 67,450 | ||||||
Partners' equity |
830,979 | 1,573,947 | ||||||
Total liabilities and partners' equity |
$ | 19,638,342 | $ | 19,946,451 | ||||
Our Share of: |
||||||||
Total assets |
$ | 8,056,873 | $ | 8,040,987 | ||||
Partners' equity |
$ | 533,929 | $ | 776,857 | ||||
Add: Excess Investment(C) |
749,227 | 757,236 | ||||||
Our net Investment in Joint Ventures |
1,283,156 | 1,534,093 | ||||||
Mortgages and other indebtedness |
$ | 6,632,419 | $ | 6,568,403 | ||||
70
SIMON
Footnotes to Financial Statements
Unaudited
Notes:
71
SIMON
Reconciliation of Net Income to FFO(1)
Unaudited
(In thousands, except as noted)
| |
For the Three Months Ended December 31, |
For the Twelve Months Ended December 31, |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
2008 | 2007 | 2008 | 2007 | ||||||||||
Net Income(2)(3)(4)(5) |
$ | 152,342 | $ | 125,005 | $ | 463,636 | $ | 491,239 | ||||||
Adjustments to Net Income to Arrive at FFO: |
||||||||||||||
Limited partners' interest in the Operating Partnership and preferred distributions of the Operating |
40,546 | 40,111 | 124,813 | 142,398 | ||||||||||
Limited partners' interest in discontinued operations |
(5 | ) | 20 | (5 | ) | (24 | ) | |||||||
Depreciation and amortization from consolidated properties and discontinued operations |
264,465 | 232,162 | 954,494 | 892,488 | ||||||||||
Simon's share of depreciation and amortization from unconsolidated entities |
96,631 | 109,462 | 376,670 | 315,159 | ||||||||||
Loss (gain) on sales of assets and interests in unconsolidated entities, net of limited partners' interest |
— | 20,471 | — | (64,072 | ) | |||||||||
Minority interest portion of depreciation and |
(2,112 | ) | (2,051 | ) | (8,559 | ) | (8,646 | ) | ||||||
Preferred distributions and dividends |
(11,340 | ) | (17,438 | ) | (58,718 | ) | (76,655 | ) | ||||||
FFO of the Operating Partnership |
$ | 540,527 | $ | 507,742 | $ | 1,852,331 | $ | 1,691,887 | ||||||
Per Share Reconciliation:
|
||||||||||||||
Diluted net income available to common stockholders per share |
$ | 0.64 | $ | 0.51 | $ | 1.87 | $ | 1.95 | ||||||
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 |
1.26 | 1.21 | 4.69 | 4.27 | ||||||||||
Loss (gain) on sales of assets and interests in unconsolidated entities, net of limited partners' interest |
— | 0.09 | — | (0.20 | ) | |||||||||
Impact of additional dilutive securities for FFO per share |
(0.04 | ) | (0.05 | ) | (0.14 | ) | (0.12 | ) | ||||||
Diluted FFO per share |
$ | 1.86 | $ | 1.76 | $ | 6.42 | $ | 5.90 | ||||||
Details for per share calculations:
|
||||||||||||||
FFO of the Operating Partnership |
$ | 540,527 | $ | 507,742 | $ | 1,852,331 | $ | 1,691,887 | ||||||
Adjustments for dilution calculation: |
||||||||||||||
Impact of preferred stock and preferred unit conversions and option exercises(6) |
7,513 | 12,836 | 43,350 | 51,567 | ||||||||||
Diluted FFO of the Operating Partnership |
548,040 | 520,578 | 1,895,681 | 1,743,454 | ||||||||||
Diluted FFO allocable to unitholders |
(104,845 | ) | (102,155 | ) | (366,868 | ) | (342,434 | ) | ||||||
Diluted FFO allocable to common stockholders |
$ | 443,195 | $ | 418,423 | $ | 1,528,813 | $ | 1,401,020 | ||||||
Basic weighted average shares outstanding |
227,512 | 223,015 | 225,333 | 222,998 | ||||||||||
Adjustments for dilution calculation: |
||||||||||||||
Effect of stock options |
397 | 673 | 551 | 778 | ||||||||||
Impact of Series C preferred unit conversion |
71 | 78 | 75 | 122 | ||||||||||
Impact of Series I preferred unit conversion |
1,254 | 2,408 | 1,531 | 2,485 | ||||||||||
Impact of Series I preferred stock conversion |
9,657 | 11,102 | 10,773 | 11,065 | ||||||||||
Diluted weighted average shares outstanding |
238,891 | 237,276 | 238,263 | 237,448 | ||||||||||
Weighted average limited partnership units outstanding |
56,514 | 57,929 | 57,175 | 58,036 | ||||||||||
Diluted weighted average shares and units outstanding |
295,405 | 295,205 | 295,438 | 295,484 | ||||||||||
Basic FFO per share |
$ | 1.90 | $ | 1.81 | $ | 6.56 | $ | 6.02 | ||||||
Percent Increase |
5.0 | % | 9.0 | % | ||||||||||
Diluted FFO per share |
$ | 1.86 | $ | 1.76 | $ | 6.42 | $ | 5.90 | ||||||
Percent Increase |
5.7 | % | 8.8 | % | ||||||||||
72
SIMON
Footnotes to Reconciliation of Net Income to FFO
Unaudited
Notes:
73