Summary
Simon Property Group, Inc. (SPG) reported its financial results for the second quarter and the first six months of 2009. The company experienced a net loss attributable to common stockholders of $20.8 million for the quarter, contrasting with a net income of $76.6 million in the same period last year. For the first six months, net income attributable to common stockholders decreased to $86.0 million from $164.5 million in the prior year. A significant factor impacting profitability was a non-cash impairment charge of $140.5 million ($0.42 per diluted share) related to an other-than-temporary decline in the fair value of its investment in Liberty International, PLC. Despite the challenging economic environment, which led to a decline in comparable sales per square foot, SPG demonstrated resilience. Average base rents for regional malls increased, and leasing spreads remained positive, indicating strong leasing performance. The company also maintained high occupancy rates, particularly in its Premium Outlet centers.
Financial Highlights
28 data points| Revenue | $903.61M |
| Operating Expenses | $678.91M |
| Operating Income | $224.70M |
| Interest Expense | $244.44M |
| Net Income | -$20.76M |
| EPS (Basic) | $-0.08 |
| EPS (Diluted) | $-0.08 |
| Shares Outstanding (Basic) | 268.29M |
| Shares Outstanding (Diluted) | 268.29M |
Key Highlights
- 1Reported a net loss attributable to common stockholders of $20.8 million for Q2 2009, compared to a net income of $76.6 million in Q2 2008.
- 2Recorded a significant $140.5 million non-cash impairment charge related to its investment in Liberty International, PLC.
- 3Regional mall comparable sales per square foot declined 10.5% for the first six months of 2009, but average base rents increased by 3.8%.
- 4Maintained strong leasing spreads of 17.0% for regional malls and 34.6% for Premium Outlet centers, indicating effective rent increases on new leases.
- 5Occupancy remained robust at 90.9% for regional malls and 97.0% for Premium Outlet centers as of June 30, 2009.
- 6Secured $2.9 billion in public capital markets during the first six months of 2009, demonstrating access to funding despite market turmoil.
- 7Ended the period with a strong cash and cash equivalents balance of $2.6 billion.