On August 5, 2024, Simon Property Group Inc (SPG, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Simon Property Group is the second-largest real estate investment trust in the United States, with a diverse portfolio that includes 230 properties across traditional malls, premium outlets, Mills centers, lifestyle centers, and other retail properties. The company also holds a 21% interest in Klépierre, a European retail company.
Quarterly Performance Overview
Simon Property Group Inc (SPG, Financial) reported net income attributable to common stockholders of $493.5 million, or $1.51 per diluted share, surpassing the analyst estimate of $1.47 per share. This compares to $486.3 million, or $1.49 per diluted share, in the same period last year. The company's revenue for the quarter was $1.458 billion, exceeding the estimated $1.302 billion.
Key Financial Achievements
Simon Property Group Inc (SPG, Financial) reported Funds From Operations (FFO) of $1.088 billion, or $2.90 per diluted share, compared to $1.077 billion, or $2.88 per diluted share, in the prior year. Real Estate FFO increased by 4.3% year-over-year to $2.93 per diluted share. Domestic property Net Operating Income (NOI) rose by 5.2%, while portfolio NOI increased by 4.8% compared to the previous year.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Lease Income | $1,315.7 million | $1,255.0 million |
| Total Revenue | $1,458.3 million | $1,369.6 million |
| Operating Income | $754.1 million | $657.9 million |
| Net Income Attributable to Common Stockholders | $493.5 million | $486.3 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Simon Property Group Inc (SPG, Financial) had total assets of $33.38 billion, with cash and cash equivalents amounting to $1.23 billion. The company completed 10 non-recourse mortgage loans totaling approximately $1.1 billion during the first six months of 2024, with a weighted average interest rate of 6.36%. The company reported $11.2 billion in liquidity, including $3.1 billion in cash on hand and $8.1 billion in available capacity under its revolving credit facilities.
Operational Metrics
Occupancy at U.S. malls and premium outlets was 95.6% as of June 30, 2024, up from 94.7% a year earlier. Base minimum rent per square foot increased by 3.0% to $57.94. Reported retailer sales per square foot for the trailing 12 months ended June 30, 2024, were $741.
Development and Dividends
Simon Property Group Inc (SPG, Financial) announced the grand opening of Tulsa Premium Outlets on August 15, 2024, which is 100% leased. The company also started construction on a new 234-unit luxury residential development at Northgate Station in Seattle, Washington.
The Board of Directors declared a quarterly common stock dividend of $2.05 for the third quarter of 2024, a 7.9% increase year-over-year. The dividend will be payable on September 30, 2024, to shareholders of record on September 9, 2024.
Guidance and Outlook
Simon Property Group Inc (SPG, Financial) raised its full-year 2024 guidance, estimating net income to be within a range of $7.37 to $7.47 per diluted share and FFO to be within a range of $12.80 to $12.90 per diluted share.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Simon Property Group Inc for further details.
