Summary
Simon Property Group, Inc. (SPG) reported its annual results for the fiscal year ending December 31, 2019. As a leading Real Estate Investment Trust (REIT), SPG owns, develops, and manages premier shopping, dining, entertainment, and mixed-use destinations, primarily consisting of malls, Premium Outlets®, and The Mills®. The company maintained a strong operational performance in 2019, with notable growth in comparable property Net Operating Income (NOI) of 1.4%. Total reported sales per square foot across its U.S. Malls and Premium Outlets portfolio increased by 4.8% to $693 psf. Ending occupancy for these U.S. properties remained robust at 95.1%, despite a slight decrease from the prior year. The company continued its strategic capital allocation by repurchasing shares, paying dividends, and investing in new developments and expansions. Financially, SPG managed its substantial debt load effectively, with an overall borrowing rate of 3.16% on its consolidated indebtedness at year-end 2019, and a weighted average maturity of 7.4 years. The company's liquidity remained strong, supported by significant availability under its credit facilities and commercial paper programs. The filing also highlights the company's commitment to sustainability and its positive performance ratings in that area.
Financial Highlights
30 data points| Revenue | $5.76B |
| Operating Expenses | $2.84B |
| Operating Income | $2.91B |
| Interest Expense | $789.35M |
| Net Income | $2.10B |
| EPS (Basic) | $6.81 |
| Shares Outstanding (Basic) | 307.95M |
| Shares Outstanding (Diluted) | 307.95M |
Key Highlights
- 1Simon Property Group maintained a robust portfolio occupancy of 95.1% for its U.S. Malls and Premium Outlets as of December 31, 2019.
- 2Total reported sales per square foot across its U.S. Malls and Premium Outlets increased by 4.8% to $693 psf.
- 3Comparable property Net Operating Income (NOI) grew by 1.4% year-over-year.
- 4The company repurchased approximately $360 million of its common stock in 2019 under its share repurchase program.
- 5Simon Property Group declared a quarterly cash dividend of $2.10 per share for the first quarter of 2020, continuing its history of regular dividend payments.
- 6The company's effective overall borrowing rate on consolidated indebtedness decreased to 3.16% by the end of 2019, with a weighted average maturity of 7.4 years.
- 7Simon Property Group reported strong progress in its sustainability initiatives, receiving a 'Green Star' ranking from GRESB and a 'B' score from CDP for its climate change questionnaire response.