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Simon
🇺🇸 NYSE:SPG
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•
Jun 30, 2023

Simon Q2 2023 Earnings Report

Simon's financial and operational performance was strong, with increased quarterly dividend and full-year guidance.

Key Takeaways

Simon Property Group reported positive second quarter results, increasing the quarterly dividend and raising the full-year 2023 guidance. Net income attributable to common stockholders was $486.3 million, or $1.49 per diluted share. FFO was $1.077 billion, or $2.88 per diluted share. Occupancy increased to 94.7% and base minimum rent per square foot increased to $56.27.

Net income attributable to common stockholders was $486.3 million, or $1.49 per diluted share.

Funds From Operations (“FFO”) was $1.077 billion, or $2.88 per diluted share.

Domestic property Net Operating Income (“NOI”) increased 3.3% and portfolio NOI increased 3.7%.

Occupancy was 94.7% at June 30, 2023, and base minimum rent per square foot was $56.27.

Total Revenue
$1.37B
Previous year: $1.28B
+7.0%
EPS
$2.88
Previous year: $2.91
-1.0%
US Malls/Outlets Occupancy
94.7%
Previous year: 93.9%
+0.9%
Gross Profit
$1.12B
Previous year: $1.04B
+7.8%
Cash and Equivalents
$837M
Previous year: $541M
+54.7%
Total Assets
$32.8B
Previous year: $33.1B
-0.8%

Simon

Simon

Simon Revenue by Segment

Forward Guidance

The Company currently estimates net income to be within a range of $6.39 to $6.49 per diluted share and FFO to be within a range of $11.85 to $11.95 per diluted share for the year ending December 31, 2023.

Positive Outlook

  • Construction continues on redevelopment and expansion projects at properties in North America, Europe and Asia.
  • In April, we opened a new shopping destination in Paris-Giverny, France.
  • The Company was active in the credit markets through the first six months of the year.
  • During the first six months, the Company completed 9 non-recourse mortgage loans totaling approximately $820 million (U.S. dollar equivalent), of which Simon’s share was $404 million.
  • The weighted average interest rate on these loans was 6.01%.

Challenges Ahead

  • changes in economic and market conditions that may adversely affect the general retail environment, including but not limited to those caused by inflation, recessionary pressures, wars, such as in Ukraine, and supply chain disruptions
  • the inability to renew leases and relet vacant space at existing properties on favorable terms
  • the potential loss of anchor stores or major tenants
  • the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise
  • an increase in vacant space at our properties

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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