SIMON PROPERTY GROUP INC. Quarterly Report for Q2 Ended Jun 30, 2011

Summary

Simon Property Group, Inc. (SPG) reported its quarterly results for the period ending June 30, 2011. The company demonstrated a notable increase in revenue and net income compared to the prior year's period, driven by improved rental income and operational efficiencies. This growth was observed across both its consolidated and unconsolidated (joint venture) portfolios. Key financial highlights include a significant increase in both minimum and overage rents, alongside a rise in tenant reimbursements. The company also reported a healthy occupancy rate and growing sales per square foot, indicating a strengthening retail environment. SPG's balance sheet remains robust with substantial investment properties, though total assets and liabilities saw slight decreases quarter-over-quarter. The company continued its focus on optimizing its debt structure, with efforts to manage interest expenses and extend debt maturities.

Key Highlights

• 1Total revenue increased by 11.5% to $1,040.9 million for the three months ended June 30, 2011, compared to $933.6 million in the same period last year.
• 2Consolidated Net Income attributable to common stockholders rose by 34.5% to $205.1 million for the three months ended June 30, 2011, from $152.5 million in the prior year.
• 3Diluted Earnings Per Common Share increased to $0.70 for the three months ended June 30, 2011, up from $0.52 in the corresponding period of 2010.
• 4Total sales per square foot for the U.S. Regional Malls and Premium Outlets portfolio increased by 9.4% to $513 as of June 30, 2011, compared to $469 in the prior year.
• 5Ending occupancy for the total U.S. portfolio improved to 93.5% as of June 30, 2011, from 93.1% in the prior year.
• 6The company's effective overall borrowing rate decreased to 5.52% at June 30, 2011, from 5.70% at June 30, 2010.
• 7Simon Property Group reported $789.7 million in cash and cash equivalents as of June 30, 2011.

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