INDIANAPOLIS, May 11, 2020 /PRNewswire/ -- Simon, a
real estate investment trust engaged in the ownership of premier
shopping, dining, entertainment and mixed-use destinations, today
reported results for the quarter ended March
31, 2020.
"Our thoughts are with everyone affected by COVID-19 and we
salute all of the individuals on the front lines fighting the
pandemic," said David Simon,
Chairman, Chief Executive Officer and President. "The Simon
team is meeting these unprecedented challenges with unwavering
commitment to the safety of our employees, shoppers, retailers and
the communities we serve. We have successfully navigated
challenging times throughout our company's history, and we will
endure and gain strength as we weather this disruption. The
resilience of our people, our innovative business approach and our
strong balance sheet with ample liquidity will serve us well."
"Business was off to a good start in January and February, with
shopper traffic, tenant demand, reported retailer sales and other
underlying portfolio fundamentals trending at or above our
expectations," said Simon. "In March, we quickly pivoted to
address the rapid spread of COVID-19, temporarily closing U.S.
properties, reducing operating costs and increasing financial
resources. We are beginning to reopen properties and are
encouraged by the consumer response thus far."
Results for the Quarter
- Net income attributable to common stockholders was $437.6 million, or $1.43 per diluted share, as compared to
$548.5 million, or $1.78 per diluted share in 2019. Results
for the first quarter of 2019 included a combined $83.6 million, or $0.24 per diluted share, of proceeds from an
insurance settlement and a gain on the sale of our interest in a
multi-family residential property. The current year period
includes a $19.0 million, or
$0.05 per diluted share, unrealized
loss in fair value of equity instruments compared to a gain of
$5.3 million, or $0.01 per diluted share, in the prior year
period, from the Company's ownership of Washington Prime Group Inc.
partnership units as part of the 2014 spin-off.
- Funds From Operations ("FFO") was $980.6
million, or $2.78 per diluted
share, as compared to $1.082 billion,
or $3.04 per diluted share, in the
prior year period. The first quarter 2019 results also
included the $0.24 per diluted share
noted above. The current year period reflects a negative
impact of approximately $0.06 per
diluted share (pre-tax) from the Company's investments in retailers
primarily due to store closures as a result of COVID-19.
- Comparable property Net Operating Income ("NOI") for the three
months ended March 31, 2020 was flat
and portfolio NOI declined 0.2%.
- Operating statistics for the Company's combined U.S. Malls and
Premium Outlets:
-
- Occupancy was 94.0% at March 31,
2020.
- Base minimum rent per square foot was $55.76 at March 31,
2020.
- Leasing spread per square foot for the trailing 12 months ended
March 31, 2020 was $2.80, an increase of 4.6%.
- Reported retailer sales per square foot were $673 for the
trailing 12 months ended March 31,
2020. This was an increase of 2.1%; however, it was impacted
by the Company's temporary closure of its U.S. retail properties
effective March 18, 2020. This impact
is shown by comparing the trailing 12 months ended February 29, 2020, sales per square foot of
$703, an increase of 6.5%.
Business Update – COVID-19
As we developed and
implemented our response to the impact of COVID-19 on our business,
our primary focus has been on the health and safety of our
employees, our shoppers and the communities in which we
serve. We implemented a series of actions to reduce costs and
increase liquidity in light of the impacts of the pandemic,
including:
- Significantly reduced all non-essential corporate spending
- Significantly reduced property operating expenses
- Implemented a temporary furlough of certain corporate and field
employees due to the closure of the Company's U.S. retail
properties as a result of governmental "stay-at-home" orders;
reduced certain corporate and field personnel and implemented a
temporary freeze on company hiring efforts
- Suspended or eliminated more than $1.0
billion of redevelopment and new development projects
- David Simon, the Company's
Chairman, Chief Executive Officer and President elected to reduce
his base salary to zero and deferred his approved 2019 bonus until
the market conditions in which the Company operates have
improved
- Implemented a temporary decrease to the base salary of certain
of its salaried employees ranging from 10% to 30%, depending on
each employee's compensation level
- The Company's Board of Directors agreed to temporarily suspend
payment to the independent directors of their board service cash
retainer fees
- Drew $3.75 billion under its
Revolving Credit Facilities
In addition, we launched "Simon Supports Communities" to assist
charitable organizations, hospitals and local communities impacted
by COVID-19. The program deploys Simon's physical, digital
and social media assets to help nonprofit organizations make a
difference. Initiatives underway include utilizing parking
lots at Simon centers for drive-through COVID-19 testing in local
communities; hosting food banks; and deploying our network of over
200 websites and social media channels to support the American Red
Cross "Sleeves Up" campaign aimed at boosting depleted blood
supplies.
Reopening of Simon's Retail Properties
As of
May 11, the Company has reopened 77
of its U.S. retail properties in markets where local and state
orders have been lifted and retail restrictions have been
eased. As part of the reopening process, the Company
published its comprehensive "COVID-19 Exposure Control Policy",
developed in conjunction with a team of leading experts in the
fields of Epidemiology and Environmental Health and Safety (EHS),
in order to provide a high level of safety standards at
its properties.
In addition, as of May 11, twelve
of Simon's Designer and international Premium Outlets properties
have reopened.
Development Activity
The Company has suspended or
eliminated more than $1.0 billion of
capital for new and redevelopment projects. The Company will
re-evaluate all suspended projects over time. Construction
continues on certain redevelopment and new development projects in
the U.S. and internationally that are nearing completion.
Simon's share of remaining required cash funding for these projects
that are currently scheduled to be completed in 2020 or 2021 is
approximately $160 million.
Capital Markets and Balance Sheet Liquidity
During the
quarter, the Company took certain steps to increase financial
flexibility.
As previously announced in March, the Company amended and
extended its $4.0 billion senior
unsecured multi-currency revolving credit facility with a
$6.0 billion senior unsecured credit
facility comprised of a $4.0 billion
multi-currency revolving credit facility and a $2.0 billion delayed draw term loan
facility. Subject to additional commitments, the revolving
credit facilities can be increased by $1.0
billion, for an aggregate up to $7.0
billion. The revolving facility initially matures on
June 30, 2024, and the term facility
initially matures on June 30,
2022.
As of March 31, 2020, Simon had
approximately $8.7 billion of
liquidity consisting of $4.1 billion
of cash on hand, including its share of joint venture cash, and
$4.6 billion of available capacity
under its revolving credit facilities and term loan, net of
outstanding U.S. and Euro commercial paper.
Dividends
Simon's Board of Directors
will declare a common stock dividend for the second quarter
before the end of June. Simon intends to maintain a common
stock dividend paid in cash and expects to distribute at least 100%
of its REIT taxable income.
Simon's Board of Directors declared the quarterly dividend on
its 8 3/8% Series J Cumulative Redeemable Preferred Stock (NYSE:
SPGPrJ) of $1.046875 per share,
payable on June 30, 2020 to
shareholders of record on June 16,
2020.
Withdrawal of 2020 Financial Guidance
Given the
evolving nature of COVID-19 and the global economic disruption it
has caused, it is not currently possible to predict with certainty
the pandemic's impact on the rest of the year's financial
results. As such, the Company is withdrawing its full-year
2020 guidance for estimated net income attributable to common
stockholders per diluted share, estimated FFO per diluted share and
comparable property NOI growth, which were provided on February 4, 2020.
Conference Call
Simon will hold a conference call to
discuss the quarterly financial results today at 5:00 p.m. Eastern Time, Monday, May 11, 2020. A live webcast of the
conference call will be accessible in listen-only mode at
investors.simon.com. An audio replay of the conference call
will be available until May 18,
2020. To access the audio replay, dial 1-855-859-2056
(international 404-537-3406) passcode 6984058.
Supplemental Materials and Website
Supplemental
information on our first quarter 2020 performance is available at
investors.simon.com. This information has also been furnished to
the SEC in a current report on Form 8-K.
We routinely post important information online on our investor
relations website, investors.simon.com. We use this website, press
releases, SEC filings, quarterly conference calls, presentations
and webcasts to disclose material, non-public information in
accordance with Regulation FD. We encourage members of the
investment community to monitor these distribution channels for
material disclosures. Any information accessed through our
website is not incorporated by reference into, and is not a part
of, this document.
Non-GAAP Financial Measures
This press release includes FFO, FFO per share, portfolio net
operating income growth and comparable property net operating
income growth, which are financial performance measures not defined
by generally accepted accounting principles in the United States ("GAAP"). Reconciliations of
these non-GAAP financial measures to the most directly comparable
GAAP measures are included in this press release and in Simon's
supplemental information for the quarter. FFO and comparable
property net operating income growth are financial performance
measures widely used in the REIT industry. Our definitions of these
non-GAAP measures may not be the same as similar measures reported
by other REITs.
Forward-Looking Statements
Certain statements made in this press release may be deemed
"forward‑looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Although the Company
believes the expectations reflected in any forward‑looking
statements are based on reasonable assumptions, the Company can
give no assurance that its expectations will be attained, and it is
possible that the Company's actual results may differ materially
from those indicated by these forward‑looking statements due to a
variety of risks, uncertainties and other factors. Such factors
include, but are not limited to: uncertainties regarding the impact
of the COVID-19 pandemic and restrictions intended to prevent its
spread on our tenants' businesses, financial condition, results of
operations, cash flow and liquidity and our ability to access the
capital markets, satisfy our debt service obligations and make
distributions to our stockholders; the inability to collect rent
due to the bankruptcy or insolvency of tenants or otherwise;
changes in economic and market conditions that may adversely affect
the general retail environment; the intensely competitive market
environment in the retail industry; changes to applicable laws or
regulations or the interpretation thereof; risks associated with
the acquisition, development, redevelopment, expansion, leasing and
management of properties; the inability to lease newly developed
properties and renew leases and relet space at existing properties
on favorable terms; the potential loss of anchor stores or major
tenants; decreases in market rental rates; the impact of our
substantial indebtedness on our future operations; any disruption
in the financial markets that may adversely affect our ability to
access capital for growth and satisfy our ongoing debt service
requirements; any change in our credit rating; changes in market
rates of interest and foreign exchange rates for foreign
currencies; general risks related to real estate investments,
including the illiquidity of real estate investments; security
breaches that could compromise our information technology or
infrastructure; risks relating to our joint venture properties; our
continued ability to maintain our status as a REIT; changes in tax
laws or regulations that result in adverse tax consequences;
changes in the value of our investments in foreign entities; our
ability to hedge interest rate and currency risk; changes in
insurance costs; the availability of comprehensive insurance
coverage; risks related to international activities, including,
without limitation, the impact, if any, of the United Kingdom's exit from the European Union;
natural disasters; the potential for terrorist activities;
environmental liabilities; the loss of key management personnel;
and the transition of LIBOR to an alternative reference rate. The
Company discusses these and other risks and uncertainties under the
heading "Risk Factors" in its annual and quarterly periodic reports
filed with the SEC. The Company may update that discussion in
subsequent other periodic reports, but except as required by law,
the Company undertakes no duty or obligation to update or revise
these forward-looking statements, whether as a result of new
information, future developments, or otherwise.
About Simon
Simon is a global leader in the ownership
of premier shopping, dining, entertainment and mixed-use
destinations and an S&P 100 company (Simon Property Group,
NYSE: SPG). Our properties across North
America, Europe and
Asia provide community gathering
places for millions of people every day and generate billions in
annual sales. For more information, visit simon.com.
|
Simon Property
Group, Inc.
Unaudited Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
|
|
|
For the Three
Months
|
|
Ended March
31,
|
|
2020
|
2019
|
|
|
|
|
REVENUE:
|
|
|
|
Lease
income
|
$
1,262,232
|
$
1,280,058
|
|
Management fees and
other revenues
|
29,166
|
27,544
|
|
Other
income
|
61,962
|
145,232
|
|
Total
revenue
|
1,353,360
|
1,452,834
|
|
|
|
|
EXPENSES:
|
|
|
|
Property
operating
|
105,624
|
111,549
|
|
Depreciation and
amortization
|
328,262
|
328,643
|
|
Real estate
taxes
|
117,543
|
115,459
|
|
Repairs and
maintenance
|
24,431
|
27,922
|
|
Advertising and
promotion
|
33,527
|
37,125
|
|
Home and regional
office costs
|
54,370
|
52,560
|
|
General and
administrative
|
6,894
|
9,136
|
|
Other
|
27,840
|
25,419
|
|
Total operating
expenses
|
698,491
|
707,813
|
|
|
|
|
OPERATING INCOME
BEFORE OTHER ITEMS
|
654,869
|
745,021
|
|
|
|
|
Interest
expense
|
(187,627)
|
(198,733)
|
|
Income and other tax
benefit (expense)
|
5,783
|
(10,102)
|
|
Income from
unconsolidated entities
|
50,465
|
90,444
|
|
Unrealized (losses)
gains in fair value of equity instruments
|
(19,048)
|
5,317
|
|
Gain on sale or
disposal of assets and interests in unconsolidated entities,
net
|
962
|
-
|
|
|
|
|
CONSOLIDATED NET
INCOME
|
505,404
|
631,947
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
66,965
|
82,638
|
|
Preferred
dividends
|
834
|
834
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
437,605
|
$ 548,475
|
|
|
|
|
|
|
|
BASIC AND DILUTED
EARNINGS PER COMMON SHARE:
|
|
|
|
Net income
attributable to common stockholders
|
$
1.43
|
$ 1.78
|
|
Simon Property
Group, Inc.
Unaudited Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
|
|
|
March
31,
|
December
31,
|
|
2020
|
2019
|
|
ASSETS:
|
|
|
|
Investment
properties, at cost
|
$
37,901,273
|
$
37,804,495
|
|
Less - accumulated
depreciation
|
14,088,615
|
13,905,776
|
|
23,812,658
|
23,898,719
|
|
Cash and cash
equivalents
|
3,724,853
|
669,373
|
|
Tenant receivables
and accrued revenue, net
|
793,490
|
832,151
|
|
Investment in
unconsolidated entities, at equity
|
2,414,642
|
2,371,053
|
|
Investment in
Klépierre, at equity
|
1,628,343
|
1,731,649
|
|
Right-of-use assets,
net
|
519,175
|
514,660
|
|
Deferred costs and
other assets
|
1,227,953
|
1,214,025
|
|
Total
assets
|
$
34,121,114
|
$
31,231,630
|
|
|
|
|
LIABILITIES:
|
|
|
|
Mortgages and
unsecured indebtedness
|
$
27,553,413
|
$
24,163,230
|
|
Accounts payable,
accrued expenses, intangibles, and deferred revenues
|
1,253,757
|
1,390,682
|
|
Cash distributions
and losses in unconsolidated entities, at equity
|
1,611,795
|
1,566,294
|
|
Lease
liabilities
|
521,378
|
516,809
|
|
Other
liabilities
|
457,624
|
464,304
|
|
Total
liabilities
|
31,397,967
|
28,101,319
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
Limited partners'
preferred interest in the Operating Partnership and
noncontrolling
|
|
|
|
redeemable interests
in properties
|
212,194
|
219,061
|
|
|
|
|
EQUITY:
|
|
|
|
Stockholders'
Equity
|
|
|
|
Capital stock
(850,000,000 total shares authorized, $ 0.0001 par value,
238,000,000
|
|
|
|
shares of excess
common stock, 100,000,000 authorized shares of preferred
stock):
|
|
|
|
|
|
|
Series J 8 3/8%
cumulative redeemable preferred stock, 1,000,000 shares
authorized,
|
|
|
|
796,948 issued and
outstanding with a liquidation value of $39,847
|
42,338
|
42,420
|
|
|
|
|
Common stock, $
0.0001 par value, 511,990,000 shares authorized, 320,567,121
and
|
|
|
|
320,435,256 issued
and outstanding, respectively
|
32
|
32
|
|
|
|
|
Class B common stock,
$ 0.0001 par value, 10,000 shares authorized, 8,000
|
|
|
|
issued and
outstanding
|
-
|
-
|
|
|
|
|
Capital in excess of
par value
|
9,768,175
|
9,756,073
|
|
Accumulated
deficit
|
(5,583,485)
|
(5,379,952)
|
|
Accumulated other
comprehensive loss
|
(119,301)
|
(118,604)
|
|
Common stock held in
treasury, at cost, 14,819,950 and 13,574,296 shares,
respectively
|
(1,926,160)
|
(1,773,571)
|
|
Total stockholders'
equity
|
2,181,599
|
2,526,398
|
|
Noncontrolling
interests
|
329,354
|
384,852
|
|
Total
equity
|
2,510,953
|
2,911,250
|
|
Total liabilities
and equity
|
$
34,121,114
|
$
31,231,630
|
|
Simon Property
Group, Inc.
|
|
|
Unaudited Joint
Venture Combined Statements of Operations
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
For the Three
Months Ended March 31,
|
|
|
2020
|
2019
|
|
|
REVENUE:
|
|
|
|
|
Lease
income
|
$
743,849
|
$ 758,979
|
|
|
Other
income
|
74,515
|
75,922
|
|
|
Total
revenue
|
818,364
|
834,901
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
Property
operating
|
147,030
|
144,721
|
|
|
Depreciation and
amortization
|
171,479
|
170,258
|
|
|
Real estate
taxes
|
68,390
|
68,717
|
|
|
Repairs and
maintenance
|
19,615
|
22,376
|
|
|
Advertising and
promotion
|
22,753
|
24,326
|
|
|
Other
|
50,229
|
49,316
|
|
|
Total operating
expenses
|
479,496
|
479,714
|
|
|
|
|
|
|
OPERATING INCOME
BEFORE OTHER ITEMS
|
338,868
|
355,187
|
|
|
|
|
|
|
Interest
expense
|
(156,640)
|
(156,016)
|
|
|
Gain on sale or
disposal of assets and interests in unconsolidated entities,
net
|
-
|
21,587
|
|
|
|
|
|
|
NET
INCOME
|
$
182,228
|
$ 220,758
|
|
|
|
|
|
|
Third-Party
Investors' Share of Net Income
|
$
92,859
|
$ 112,668
|
|
|
|
|
|
|
Our Share of Net
Income
|
89,369
|
108,090
|
|
|
Amortization of
Excess Investment (A)
|
(20,840)
|
(20,792)
|
|
|
Our Share of Gain
on Sale or Disposal of Assets and Interests in
|
|
|
|
|
Other Income in
the Consolidated Financial Statements
|
-
|
(9,155)
|
|
|
|
|
|
|
Income from
Unconsolidated Entities (B)
|
$
68,529
|
$ 78,143
|
|
|
|
|
|
|
Note: The above
financial presentation does not include any information related to
our investments in Klépierre S.A.
|
|
|
("Klépierre") and HBS Global Properties ("HBS"). For additional
information, see footnote B.
|
|
|
Simon Property
Group, Inc
|
|
Unaudited Joint
Venture Combined Balance Sheets
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
December
31,
|
|
|
2020
|
2019
|
|
|
Assets:
|
|
|
|
|
Investment
properties, at cost
|
$
19,500,080
|
$
19,525,665
|
|
|
Less - accumulated
depreciation
|
7,493,263
|
7,407,627
|
|
|
12,006,817
|
12,118,038
|
|
|
Cash and cash
equivalents
|
844,940
|
1,015,864
|
|
|
Tenant receivables
and accrued revenue, net
|
445,799
|
510,157
|
|
|
Right-of-use assets,
net
|
180,638
|
185,302
|
|
|
Deferred costs and
other assets
|
371,875
|
384,663
|
|
|
Total
assets
|
$
13,850,069
|
$
14,214,024
|
|
|
|
|
|
|
Liabilities and
Partners' Deficit:
|
|
|
|
|
Mortgages
|
$
15,328,574
|
$
15,391,781
|
|
|
Accounts payable,
accrued expenses, intangibles, and deferred revenue
|
789,129
|
977,112
|
|
|
Lease
liabilities
|
182,465
|
186,594
|
|
|
Other
liabilities
|
362,323
|
338,412
|
|
|
Total
liabilities
|
16,662,491
|
16,893,899
|
|
|
|
|
|
|
Preferred
units
|
67,450
|
67,450
|
|
|
Partners'
deficit
|
(2,879,872)
|
(2,747,325)
|
|
|
Total liabilities and
partners' deficit
|
$
13,850,069
|
$
14,214,024
|
|
|
|
|
|
|
Our Share
of:
|
|
|
|
|
Partners'
deficit
|
$
(1,248,877)
|
$
(1,196,926)
|
|
|
Add: Excess
Investment (A)
|
1,504,586
|
1,525,903
|
|
|
Our net Investment in
unconsolidated entities, at equity
|
$
255,709
|
$ 328,977
|
|
|
|
Note: The above
financial presentation does not include any information related to
our investments in Klépierre and
|
|
|
HBS Global Properties. For additional information, see footnote
B.
|
|
|
Simon Property
Group, Inc.
|
|
Unaudited
Reconciliation of Non-GAAP Financial Measures (C)
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
|
|
|
Reconciliation of
Consolidated Net Income to FFO
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
March
31,
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
Consolidated Net
Income (D)
|
$
505,404
|
|
$
631,947
|
|
Adjustments to
Arrive at FFO:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from consolidated
|
|
|
|
|
properties
|
326,039
|
|
325,938
|
|
Our share of
depreciation and amortization from
|
|
|
|
|
unconsolidated entities,
including Klépierre and HBS
|
136,706
|
|
134,630
|
|
Gain on sale or
disposal of assets and interests in unconsolidated entities,
net
|
(962)
|
|
-
|
|
Unrealized losses
(gains) in fair value of equity instruments
|
19,048
|
|
(5,317)
|
|
Net loss attributable
to noncontrolling interest holders in
|
|
|
|
|
properties
|
172
|
|
917
|
|
Noncontrolling
interests portion of depreciation and amortization
|
(4,464)
|
|
(4,882)
|
|
Preferred
distributions and dividends
|
(1,313)
|
|
(1,313)
|
|
FFO of the
Operating Partnership
|
$
980,630
|
|
$
1,081,920
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share to diluted FFO per share reconciliation:
|
|
|
|
|
Diluted net income
per share
|
$
1.43
|
|
$
1.78
|
|
Depreciation and
amortization from consolidated properties
|
|
|
|
|
and our share of
depreciation and amortization from unconsolidated
|
|
|
|
|
entities, including
Klépierre and HBS, net of noncontrolling
|
|
|
|
|
interests portion of
depreciation and amortization
|
1.31
|
|
1.27
|
|
Gain on sale or
disposal of assets and interests in unconsolidated entities,
net
|
(0.01)
|
|
-
|
|
Unrealized losses
(gains) in fair value of equity instruments
|
0.05
|
|
(0.01)
|
|
Diluted FFO per
share
|
$
2.78
|
|
$
3.04
|
|
|
|
|
|
|
Details for per share
calculations:
|
|
|
|
|
|
|
|
|
|
FFO of the Operating
Partnership
|
$
980,630
|
|
$
1,081,920
|
|
Diluted FFO allocable
to unitholders
|
(129,628)
|
|
(142,319)
|
|
Diluted FFO allocable
to common stockholders
|
$
851,002
|
|
$
939,601
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares outstanding
|
306,504
|
|
308,978
|
|
Weighted average
limited partnership units outstanding
|
46,688
|
|
46,800
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares and units outstanding
|
353,192
|
|
355,778
|
|
|
|
|
|
|
Basic and Diluted FFO
per Share
|
$
2.78
|
|
$
3.04
|
|
Percent Change
|
-8.6%
|
|
|
|
|
|
|
|
|
Simon Property
Group, Inc.
|
|
Footnotes to
Unaudited Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Excess investment
represents the unamortized difference of our investment over equity
in the underlying net assets of the related partnerships and joint
ventures shown therein. The Company generally amortizes
excess investment over the life of the related assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B)
|
The Unaudited Joint
Venture Combined Statements of Operations do not include any
operations or our share of net income or excess investment
amortization related to our investments in Klépierre and HBS Global
Properties. Amounts included in Footnote D below exclude our
share of related activity for our investments in Klépierre and HBS
Global Properties. For further information on Klépierre,
reference should be made to financial information in Klépierre's
public filings and additional discussion and analysis in our Form
10-K.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C)
|
This report contains
measures of financial or operating performance that are not
specifically defined by GAAP, including FFO and FFO per
share. FFO is a performance measure that is standard in the
REIT business. We believe FFO provides investors with
additional information concerning our operating performance and a
basis to compare our performance with those of other REITs.
We also use these measures internally to monitor the operating
performance of our portfolio. Our computation of these non-GAAP
measures may not be the same as similar measures reported by other
REITs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We determine FFO
based upon the definition set forth by the National Association of
Real Estate Investment Trusts ("NAREIT") Funds From Operations
White Paper - 2018 Restatement. Our main business includes
acquiring, owning, operating, developing, and redeveloping real
estate in conjunction with the rental of real estate. Gains
and losses of assets incidental to our main business are included
in FFO. We determine FFO to be our share of consolidated net
income computed in accordance with GAAP, excluding real estate
related depreciation and amortization, excluding gains and losses
from extraordinary items, excluding gains and losses from the sale,
disposal or property insurance recoveries of, or any impairment
related to, depreciable retail operating properties, plus the
allocable portion of FFO of unconsolidated joint ventures based
upon economic ownership interest, and all determined on a
consistent basis in accordance with GAAP. However, you should
understand that FFO does not represent cash flow from operations as
defined by GAAP, should not be considered as an alternative to net
income determined in accordance with GAAP as a measure of operating
performance, and is not an alternative to cash flows as a measure
of liquidity.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(D)
|
Includes our share
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Gains on land sales
of $5.2 million and $4.4 million for the three months ended March
31, 2020 and 2019, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Straight-line
adjustments increased income by $12.0 million and $16.7 million for
the three months ended March 31, 2020 and 2019,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Amortization of fair
market value of leases from acquisitions increased income by $1.3
million and $1.3 million for the three months ended March 31, 2020
and 2019.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/simon-property-group-reports-first-quarter-2020-results-and-provides-business-update-301056879.html
SOURCE Simon