What was the key driver of the increase in net income for the nine months ended September 30, 2015?

The increase in net income for the nine months ended September 30, 2015, was primarily driven by improved operating performance and core business fundamentals, a decrease in interest expense, a gain from the sale of marketable securities, and a non-cash gain from the disposition of unconsolidated properties. These positive factors were partially offset by the impact of the Washington Prime spin-off and higher acquisition/development costs in the current year.

How has the company's debt profile changed?

Total mortgage and unsecured indebtedness increased to $22.63 billion as of September 30, 2015, from $20.85 billion at December 31, 2014. This increase is attributed to new debt issuances to fund acquisitions and general corporate purposes, as well as increases in borrowings under credit facilities and commercial paper programs. The company also issued $500 million of senior unsecured notes at 2.50% and $600 million at 3.50% during the period.

What is the company's strategy for future growth?

Simon Property Group focuses on enhancing the profitability and operation of its existing properties through attracting quality tenants and efficient operations. Growth is also pursued through selective acquisitions, increasing interests in high-quality real estate, strategic development and redevelopment of new and existing properties, and leveraging consumer traffic via marketing initiatives and alliances. The company also generates supplemental revenues from various business activities and strategically disposes of non-core assets.

What is the company's outlook regarding its debt covenants and liquidity?

As of September 30, 2015, Simon Property Group was in compliance with all covenants of its unsecured debt and secured debt. The company has sufficient cash on hand and availability under its credit facilities and commercial paper program to meet its debt maturities and capital needs through 2015. Net cash flow from operations and distributions from unconsolidated entities are expected to be sufficient for ongoing operations, dividends, and recurring capital expenditures.

SPG/SPG-PJ 10-Q Quarterly Report Q3 FY2015

Summary

Simon Property Group, Inc. (SPG) reported solid financial results for the nine months ended September 30, 2015. Total revenue increased to $3.89 billion, and consolidated net income rose to $1.47 billion, compared to $3.57 billion and $1.18 billion, respectively, in the prior year period. Diluted earnings per share for the nine months were $4.04, up from $3.22 in the same period of 2014. This growth was driven by improved operating fundamentals, strategic acquisitions, and a gain from the sale of marketable securities, partially offset by the impact of the Washington Prime spin-off and higher acquisition/development costs in the current year. The company's balance sheet showed total assets of $30.64 billion and total liabilities of $25.50 billion, resulting in total equity of $5.12 billion. Significant investments in unconsolidated entities, including joint ventures and an equity stake in Klépierre, highlight the company's diversified real estate portfolio. Debt levels increased, reflecting strategic financing activities, but the company maintained compliance with all debt covenants. Liquidity remains strong, supported by operating cash flows and available credit facilities.

Financial Highlights

28 data points

Beta

Revenue

$1.32B

Net Income

$420.01M

0.3% Net Margin

EPS (Diluted)

$1.36

Total Assets

$30.85B

Cash & Equivalents

$856.86M

Free Cash Flow

$735.52M

Financial Statements

Beta

Revenue	$1.32B
Operating Expenses	$662.55M
Operating Income	$657.59M
Interest Expense	$229.65M
Net Income	$420.01M
EPS (Basic)	$1.36
Shares Outstanding (Basic)	309.42M

Key Highlights

1Revenue increased to $3.89 billion for the first nine months of 2015, up from $3.57 billion in the prior year period.
2Net income attributable to common stockholders grew to $1.26 billion for the first nine months of 2015, a significant increase from $1.00 billion in the prior year.
3Diluted earnings per share for the nine months ended September 30, 2015, were $4.04, compared to $3.22 for the same period in 2014.
4Total assets grew to $30.64 billion as of September 30, 2015, from $29.53 billion at the end of 2014, primarily due to increases in investment properties and cash.
5The company completed several acquisitions and strategic joint venture formations, including a significant joint venture with Hudson's Bay Company and participation in the development of Brickell City Centre.
6Debt levels increased to $22.63 billion from $20.85 billion, driven by new issuances and existing debt, though the company maintained compliance with all covenants.
7Strong operating performance was evidenced by a 7.3% increase in portfolio Net Operating Income (NOI) for the nine-month period.

SIMON PROPERTY GROUP INC. Quarterly Report for Q3 Ended Sep 30, 2015

Summary

Financial Highlights

Key Highlights

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