Early Access

10-QPeriod: Q2 FY2024

SIMON PROPERTY GROUP INC. Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 7, 2024For Securities:SPGSPG-PJ

Summary

Simon Property Group, Inc. (SPG) reported its financial results for the second quarter and first half of 2024. For the six months ended June 30, 2024, consolidated net income increased significantly to $1.41 billion compared to $1.08 billion in the prior year period. This improvement was driven by a substantial pre-tax gain of $414.8 million from the sale of remaining interests in Authentic Brands Group (ABG), along with increased lease income and other income, including higher interest income. Diluted earnings per share (EPS) and diluted earnings per unit increased to $3.76 for the first six months of 2024, up from $2.87 in the same period last year. Despite increased interest expenses due to new debt issuances and higher property operating expenses due to inflation, the company demonstrated strong operational performance. Ending occupancy for U.S. Malls and Premium Outlets improved to 95.6%, and average base minimum rent per square foot also saw a 3.0% increase year-over-year. The company maintains a strong liquidity position with approximately $8.1 billion in available borrowing capacity under its credit facilities.

Financial Statements
Beta
Revenue$1.46B
Operating Expenses$704.16M
Operating Income$754.10M
Interest Expense$221.34M
Net Income$493.46M
EPS (Basic)$1.51
EPS (Diluted)$1.51
Shares Outstanding (Basic)326.04M
Shares Outstanding (Diluted)326.04M

Key Highlights

  • 1Net income attributable to common stockholders for the six months ended June 30, 2024, increased to $1.225 billion from $938.2 million in the prior year period.
  • 2Diluted earnings per share for the six months ended June 30, 2024, rose to $3.76 from $2.87 in the same period last year.
  • 3Total revenue for the six months ended June 30, 2024, was $2.90 billion, an increase from $2.72 billion in the prior year period.
  • 4Lease income increased by $115.3 million for the six months ended June 30, 2024, compared to the same period in 2023, driven by higher fixed lease income and increased occupancy.
  • 5Ending occupancy for U.S. Malls and Premium Outlets improved to 95.6% as of June 30, 2024, up from 94.7% as of June 30, 2023.
  • 6Average base minimum rent per square foot for U.S. Malls and Premium Outlets increased by 3.0% to $57.94 as of June 30, 2024, compared to $56.27 as of June 30, 2023.
  • 7The company generated significant cash flow from operations and distributions from unconsolidated entities, totaling $2.0 billion for the first six months of 2024, and maintained approximately $8.1 billion in available borrowing capacity under its credit facilities.

Frequently Asked Questions