Summary
Simon Property Group, Inc. (SPG) reported its first-quarter 2010 financial results, showing a significant decrease in net income attributable to common stockholders to $9.4 million, or $0.03 per share, compared to $106.8 million, or $0.45 per share, in the prior year's period. This sharp decline was primarily driven by a substantial loss on extinguishment of debt totaling $165.6 million, related to a proactive debt tender offer and new senior note issuance. Despite this, core business fundamentals showed improvement from the prior year, with stable comparable sales per square foot, an increase in average base rents, and slightly improved occupancy rates.
Financial Highlights
28 data pointsBeta
Financial Statements
Beta
| Revenue | $925.07M |
| Operating Expenses | $498.15M |
| Operating Income | $426.92M |
| Interest Expense | $263.96M |
| Net Income | $9.37M |
| EPS (Basic) | $0.03 |
| EPS (Diluted) | $0.03 |
| Shares Outstanding (Basic) | 286.12M |
| Shares Outstanding (Diluted) | 286.44M |
Key Highlights
- 1Net income attributable to common stockholders significantly decreased to $9.4 million ($0.03/share) in Q1 2010 from $106.8 million ($0.45/share) in Q1 2009, largely due to a $165.6 million loss on extinguishment of debt.
- 2Total revenue for the quarter was $925.1 million, a slight increase from $918.5 million in the prior year, indicating stable underlying business operations.
- 3Occupancy remained strong at 92.2% for the total U.S. portfolio, a slight improvement from 92.1% in the prior year, with average base rents increasing by 3.2% to $38.72 per square foot.
- 4The company completed a significant debt refinancing during the quarter, issuing $2.25 billion in new senior unsecured notes and repurchasing approximately $2.3 billion of existing notes.
- 5Simon Property Group is expanding its outlet portfolio with a definitive agreement to acquire 22 outlet shopping centers from Prime Outlets Acquisition Company, expected to close in the summer of 2010.
- 6Internationally, the company is proceeding with the sale of its interests in Simon Ivanhoe (seven shopping centers in France and Poland), with an expected gain of approximately $300 million, anticipated to close in Q2 2010.
- 7Funds From Operations (FFO) decreased by 31.7% to $325.6 million ($0.94 per share) from $476.8 million ($1.61 per share) in the prior year, heavily impacted by the debt extinguishment loss and share dilution.