Summary
Simon Property Group, Inc. (SPG) filed an amendment to its 2008 10-K report on April 30, 2009, primarily to conform financial data with its Q1 2009 10-Q filing, which adopted new accounting standards for noncontrolling interests and redeemable securities. For the year ended December 31, 2008, SPG reported consolidated revenue of $3.78 billion, a slight increase from the prior year, driven by property acquisitions and higher rental rates. However, net income available to common stockholders decreased to $422.5 million from $436.2 million in 2007, reflecting a $20.3 million loss from redeeming debt and $21.2 million in impairment charges. Despite economic pressures impacting tenants, SPG demonstrated resilience with stable occupancy rates and increasing average base rents across its key property types, including regional malls and premium outlet centers. Funds from Operations (FFO) for 2008 were $1.85 billion, up from $1.69 billion in 2007, indicating continued operational strength. The company maintained a strong liquidity position with $773.5 million in cash and cash equivalents and $2.4 billion in available borrowing capacity under its credit facility at year-end 2008.
Financial Highlights
29 data points| Revenue | $3.78B |
| Operating Expenses | $2.24B |
| Operating Income | $1.54B |
| Interest Expense | $947.14M |
| Net Income | $422.52M |
| EPS (Basic) | $1.88 |
| EPS (Diluted) | $1.87 |
| Shares Outstanding (Basic) | 225.33M |
| Shares Outstanding (Diluted) | 225.88M |
Key Highlights
- 1Total consolidated revenue increased to $3.78 billion in 2008 from $3.65 billion in 2007, demonstrating top-line growth.
- 2Net income available to common stockholders slightly decreased to $422.5 million in 2008 from $436.2 million in 2007, impacted by debt extinguishment losses and impairment charges.
- 3Funds From Operations (FFO) grew by 9.5% to $1.85 billion in 2008, indicating strong underlying operational performance.
- 4Average base rents per square foot increased across major property types, with regional malls up 6.5% and premium outlet centers up 7.7%, highlighting pricing power.
- 5Occupancy rates remained high, with regional malls at 92.6% and premium outlet centers at 98.9% as of year-end 2008.
- 6The company maintained a strong liquidity position with $773.5 million in cash and cash equivalents and $2.4 billion in available credit facility capacity at year-end 2008.
- 7Significant investments were made in property acquisitions, expansions, and developments, particularly notable with the ongoing integration of The Mills Corporation acquisition.