SIMON PROPERTY GROUP INC. Quarterly Report for Q2 Ended Jun 30, 2021

Summary

Simon Property Group, Inc. (SPG) reported its second-quarter 2021 financial results, demonstrating a robust recovery and improved operational performance compared to the prior year period heavily impacted by the COVID-19 pandemic. Total revenue increased significantly, driven by higher lease income and other income sources, reflecting a rebound in tenant sales and lease settlements. The company has actively managed its debt, issuing new notes and repaying existing obligations, while maintaining a strong liquidity position with substantial available borrowing capacity. Investments in unconsolidated entities, particularly in retail investments and international properties, significantly contributed to the earnings growth. The company's operational metrics, such as occupancy rates and average base minimum rent, show signs of stabilization and modest improvement in certain segments, although the overall retail environment continues to present challenges. Simon Property Group continues to focus on strategic acquisitions, developments, and dispositions to optimize its portfolio. The company remains committed to its dividend payout, declaring an increased quarterly dividend, signaling confidence in its ongoing financial health and future prospects.

Key Highlights

• 1Total revenue for the six months ended June 30, 2021, increased to $2.494 billion from $2.415 billion in the same period of 2020.
• 2Net income attributable to common stockholders for the six months ended June 30, 2021, rose to $1.063 billion ($3.24 per share) from $691.8 million ($2.26 per share) in the prior year.
• 3Diluted FFO per share increased to $5.72 for the first six months of 2021, compared to $4.90 for the same period in 2020.
• 4The company's liquidity remains strong, with $1.29 billion in cash and cash equivalents and $6.9 billion in aggregate available borrowing capacity under its credit facilities as of June 30, 2021.
• 5Significant financing activities included issuing senior unsecured notes totaling $1.5 billion in January 2021 and €750 million in March 2021, while also repaying $2.0 billion in debt.
• 6Income from unconsolidated entities saw a substantial increase to $363.6 million for the first six months of 2021, up from $94.8 million in the prior year, largely due to favorable results from retailer investments and international properties.
• 7The company declared an increased quarterly cash dividend of $1.40 per share for Q2 2021 and $1.50 per share for Q3 2021, reflecting confidence in its financial performance.

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