10-KPeriod: FY2009

SIMON PROPERTY GROUP INC. Annual Report, Year Ended Dec 31, 2009

Filed February 25, 2010For Securities:SPGSPG-PJ

Summary

Simon Property Group, Inc. (SPG) filed its 10-K for the fiscal year ended December 31, 2009, on February 24, 2010. The report provides a comprehensive overview of the company's extensive portfolio of retail real estate properties, including regional malls, Premium Outlet Centers, and The Mills properties across the United States and internationally. Despite the ongoing economic challenges of 2009, SPG maintained a strong operational presence. The company highlighted its diversified portfolio and strategic focus on high-quality assets, noting a high occupancy rate across its various property types. The filing also detailed SPG's robust financing structure, including a significant unsecured revolving credit facility, and its commitment to maintaining its REIT status through distributions. Investors should note the company's proactive management of debt, its investment policies, and its exposure to risks inherent in the retail and real estate markets, such as tenant bankruptcies and economic downturns.

Financial Highlights

30 data points
Beta

Revenue

$3.78B

Net Income

$283.10M

7.5% Net Margin

EPS (Diluted)

$1.05

Total Assets

$25.95B

Cash & Equivalents

$3.96B

Free Cash Flow

$1.72B

Financial Statements
Beta
Revenue$3.78B
Operating Expenses$2.37B
Operating Income$1.41B
Interest Expense$992.07M
Net Income$283.10M
EPS (Basic)$1.06
EPS (Diluted)$1.05
Shares Outstanding (Basic)267.05M
Shares Outstanding (Diluted)268.47M

Key Highlights

  • 1Simon Property Group operates a vast portfolio of 321 income-producing properties in the U.S. and 51 internationally, comprising regional malls, Premium Outlet Centers, The Mills, and community/lifestyle centers.
  • 2The company reported approximately 92.1% leased GLA for its U.S. regional malls and 97.9% for its Premium Outlet Centers as of December 31, 2009.
  • 3SPG entered into a new $3.565 billion unsecured revolving corporate credit facility in December 2009, with an accordion feature to expand capacity to $4.0 billion, maturing in March 2013.
  • 4The company's total consolidated indebtedness (face amount) was $18.63 billion as of December 31, 2009, with approximately $12.02 billion being unsecured.
  • 5In 2009, SPG's common stock experienced significant price volatility, trading between a high of $83.82 and a low of $24.27, reflecting the broader market conditions.
  • 6The company declared dividends aggregating $2.70 per share for 2009, paid partly in stock and partly in cash, subject to stockholder election, while 2008 dividends were $3.60 per share paid entirely in cash.
  • 7SPG is a leader in sustainability, having received the NAREIT Leader in the Light Award for the fifth consecutive year and being recognized by the Carbon Disclosure Project for its climate change disclosure practices.

Frequently Asked Questions

Simon Property Group, Inc. is a self-administered and self-managed real estate investment trust (REIT) focused on owning, developing, and managing retail real estate. As of December 31, 2009, its portfolio consisted of 321 income-producing properties in the United States and 51 internationally, including regional malls, Premium Outlet Centers, The Mills properties, and community/lifestyle centers.

The company managed its debt through various means, including a significant unsecured revolving corporate credit facility. As of December 31, 2009, SPG had approximately $18.63 billion in total consolidated indebtedness. On December 8, 2009, it entered into a new $3.565 billion unsecured revolving credit facility maturing on March 31, 2013, which provided significant financial flexibility.

Key risks highlighted include substantial debt burden, potential disruption in credit markets impacting access to financing, adverse changes in credit ratings, risks associated with property acquisitions and development, illiquidity of real estate investments, environmental liabilities, challenges in the retail environment due to economic conditions, tenant bankruptcies, loss of anchor tenants, and risks associated with international operations.

SPG's common stock price was volatile in 2009, reflecting the economic climate, with a high of $83.82 and a low of $24.27. The company declared dividends totaling $2.70 per share for 2009, with a mix of cash and stock, and indicated a commitment to maintaining its REIT status through distributions. A quarterly dividend of $0.60 per share was approved for early 2010, payable in cash.