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Dec 31, 2020
Simon Q4 2020 Earnings Report
Simon's Q4 performance in 2020 was impacted by the COVID-19 pandemic, resulting in decreased net income and FFO.
Key Takeaways
Simon Property Group reported a challenging fourth quarter in 2020, influenced significantly by the COVID-19 pandemic. Despite these difficulties, the company demonstrated resilience through strategic acquisitions and cost management.
Net income attributable to common stockholders was $271.5 million, or $0.86 per diluted share.
FFO was $786.6 million, or $2.17 per diluted share, negatively impacted by COVID-19.
Portfolio NOI declined 23.9% due to reduced revenues and tenant rent abatements.
Occupancy in U.S. Malls and Premium Outlets stood at 91.3%.
Simon
Simon
Simon Revenue by Segment
Revenue by Segment
Lease Income Revenue
CapyFin.comManagement Fees and Other Revenues Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
The Company currently estimates net income to be within a range of $4.60 to $4.85 per diluted share and that FFO will be within a range of $9.50 to $9.75 per diluted share for the year ending December 31, 2021. This guidance range assumes no further government mandated shutdowns of the Company’s domestic retail properties.
Positive Outlook
- Estimated net income attributable to common stockholders per diluted share to be within a range of $4.60 to $4.85.
- Estimated FFO per diluted share to be within a range of $9.50 to $9.75.
- Guidance range assumes no further government mandated shutdowns of the Company’s domestic retail properties.
- Simon's Board of Directors will declare a common stock cash dividend for the first quarter of 2021 on or before March 31, 2021.
- 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 March 31, 2021 to shareholders of record on March 17, 2021.
Challenges Ahead
- Uncertainties regarding the impact of the COVID-19 pandemic and governmental restrictions intended to prevent its spread on our business
- Changes in economic and market conditions that may adversely affect the general retail environment
- The potential loss of anchor stores or major tenants
- The inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise
- The intensely competitive market environment in the retail industry, including e-commerce
Revenue & Expenses
Visualization of income flow from segment revenue to net income