Simon Property Group Reports Second Quarter 2017 Results And Raises Quarterly Dividend And Full Year 2017 Guidance

Total portfolio NOI growth for the three months ended June 30, 2017 was 5.0% and was 5.3% for the six months ended June 30, 2017.  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 three months ended June 30, 2017 was 4.4% and was 4.1% for the six months ended June 30, 2017.      

Dividends

Today, Simon's Board of Directors declared a quarterly common stock dividend of $1.80 per share.  This is a 9.1% increase year-over-year.  The dividend will be payable on August 31, 2017 to stockholders of record on August 17, 2017. 

Simon's Board of Directors also declared the quarterly dividend on its 8 3/8% Series J Cumulative Redeemable Preferred Stock (NYSE: SPGPrJ) of $1.046875 per share, payable on September 29, 2017 to stockholders of record on September 15, 2017. 

Development Activity

During the quarter, we opened four new outlet developments.       

• On April 6^th, we opened Siheung Premium Outlets, in Siheung (Seoul), South Korea, a 444,000 square foot center offering more than 200 domestic and international brands.  Siheung Premium Outlets is our fourth outlet center in South Korea.  Simon owns a 50% interest in this center.
• On April 13^th, we opened Provence Designer Outlet, in Provence, France.  This 269,000 square foot center offers more than 100 high-quality, name-brand stores and is the first designer outlet in the South of France.  Simon owns a 90% interest in this center.    
• On June 15^th, we opened Genting Highlands Premium Outlets (Kuala Lumpur, Malaysia), a 278,000 square foot center featuring over 130 designers and name-brand stores.  Genting Highlands Premium Outlets is our second outlet center in Malaysia.  Simon owns a 50% interest in this center. 
• On June 29^th, we opened Norfolk Premium Outlets (Norfolk, Virginia) a 332,000 square foot center featuring high-quality, name brand stores in a village style setting.  Simon owns a 65% interest in this center.

Construction continues on two other new development projects:

• The Shops at Clearfork (Fort Worth, Texas); scheduled to open in September 2017.  Simon owns a 45% interest in this project. 
• Premium Outlet Collection Edmonton IA (Edmonton, Alberta, Canada); scheduled to open in May 2018.  Simon owns a 50% interest in this project.   

Construction also continues on significant redevelopment and expansion projects at properties including La Plaza Mall, The Shops at Riverside, Aventura Mall, Allen Premium Outlets and Toronto Premium Outlets. 

At quarter-end, redevelopment and expansion projects, including the addition of new anchors, were underway at 25 properties in the U.S. and Canada.  Simon's share of the costs of all new development and redevelopment projects under construction at quarter-end was approximately $1.3 billion.

During the second quarter, construction started on a 328,000 square foot upscale outlet center located in Thornton (Denver), Colorado, projected to open in September 2018.  Simon owns 100% of this project. 

Financing Activity

The Company was active in both the unsecured and secured credit markets in the second quarter, continuing to lower our effective borrowing costs.

The Company completed a dual tranche senior notes offering totaling $1.35 billion with a weighted average coupon rate of 3.04% and weighted average term of 7.8 years. 

During the quarter, the Company retired two series of senior notes totaling $1.85 billion with a weighted average coupon rate of 4.51%.  The new notes offering had a weighted average coupon rate approximately 150 basis points lower than the notes that were retired during the quarter. 

Also during the quarter, the Company closed on six mortgage loans, including three mortgages on international properties, totaling approximately $1.1 billion (U.S. dollar equivalent), of which Simon's share is $573 million.  The weighted average interest rate and weighted average term on these loans is 3.48% and 8.0 years, respectively.  

As of June 30, 2017, Simon had approximately $6.5 billion of liquidity consisting of cash on hand, including its share of joint venture cash, and available capacity under its revolving credit facilities.

Common Stock Repurchase Program
During the quarter ended June 30, 2017, the Company repurchased 1,528,359 shares of its common stock.            

2017 Guidance

The Company currently estimates net income to be within a range of $6.20 to $6.28 per diluted share for the year ending December 31, 2017 and that FFO will be within a range of $11.14 to $11.22 per diluted share. This represents an increase of $0.04 per diluted share from the midpoint of the range provided on April 27, 2017, after giving effect to the $0.36 per diluted share charge on the extinguishment of debt.   

The following table provides the reconciliation for the expected range of estimated net income available to common stockholders per diluted share to estimated FFO per diluted share:

Conference Call

Simon will hold a conference call to discuss the quarterly financial results today at 10:00 a.m. Eastern Time, Tuesday, August 1, 2017.  A live webcast of the conference call will be accessible in listen-only mode at investors.simon.com.  An audio replay of the conference call will be available until August 8, 2017.  To access the audio replay, dial 1-855-859-2056 (international 404-537-3406) passcode 39989308. 

Supplemental Materials and Website

Supplemental information on our second quarter 2017 performance is available at investors.simon.com. This information has also been furnished to the SEC in a current report on Form 8-K.

We routinely post important information online at our investor relations website, investors.simon.com. We use this website, press releases, SEC filings, quarterly conference calls, presentations and webcasts to disclose material, non-public information in accordance with Regulation FD. We encourage members of the investment community to monitor these distribution channels for material disclosures.  Any information accessed through our website is not incorporated by reference into, and is not a part of, this document.

Non-GAAP Financial Measures

This press release includes FFO, FFO per share, comparable FFO per share, comparable earnings per share, portfolio net operating income growth and comparable property net operating income growth, which are financial performance measures not defined by generally accepted accounting principles in the United States ("GAAP"). Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in this press release and in Simon's supplemental information for the quarter. FFO and comparable property net operating income growth are financial performance measures widely used in the REIT industry. Our definitions of these non-GAAP measures may not be the same as similar measures reported by other REITs.

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 its expectations will be attained, and it is possible that the Company's 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: changes in economic and market conditions that adversely affect the general retail environment; the potential loss of anchor stores or major tenants; the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; decreases in market rental rates; the intensely competitive market environment in the retail industry; the inability to lease newly developed properties and renew leases and relet space at existing properties on favorable terms; risks related to international activities, including, without limitation, the impact of the United Kingdom's vote to leave the European Union; changes to applicable laws or regulations or the interpretation thereof; risks associated with the acquisition, development, redevelopment, expansion, leasing and management of properties; general risks related to real estate investments, including the illiquidity of real estate investments; the impact of our substantial indebtedness on our future operations; any disruption in the financial markets that adversely affects our ability to access capital for growth and satisfy our ongoing debt service requirements; any change in our credit rating; changes in market rates of interest and foreign exchange rates for foreign currencies; changes in the value of our investments in foreign entities; our ability to hedge interest rate and currency risk; our continued ability to maintain our status as a REIT; changes in tax laws or regulations that result in adverse tax consequences; risks relating to our joint venture properties; environmental liabilities; changes in insurance costs, the availability of comprehensive insurance coverage; security breaches that could compromise our information technology or infrastructure; natural disasters; the potential for terrorist activities; and the loss of key management personnel. 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 except as required by law, 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.

About Simon
Simon is a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales. For more information, visit simon.com.

¹ For a reconciliation of FFO and net income per diluted share on a comparable basis, please see Footnote H of the Footnotes to Unaudited Financial Information.

Simon Property Group, Inc. Unaudited Consolidated Statements of Operations (Dollars in thousands, except per share amounts)
	For the Three Months			For the Six Months
	Ended June 30,			Ended June 30,
	2017	2016		2017	2016
REVENUE:
Minimum rent	$ 851,552	$ 822,224		$ 1,698,350	$ 1,640,760
Overage rent	29,764	31,250		57,967	60,167
Tenant reimbursements	380,527	367,062		759,442	738,676
Management fees and other revenues	31,367	34,478		61,914	67,878
Other income	68,338	60,366		129,638	144,614
Total revenue	1,361,548	1,315,380		2,707,311 Werbung Mehr Nachrichten zur Simon Property REIT Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 10:33 - PR Newswire Norges Bank - Form 8.3 - BHP Group Limited 08:56 - PR Newswire Samson Rock Capital LLP - Form 8.3 - TClarke Plc 08:56 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Accrol Group Holdings plc SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59