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Dec 31, 2023

Simon Q4 2023 Earnings Report

Simon reported excellent results for the fourth quarter and full year 2023, highlighted by strong FFO growth and increased occupancy.

Key Takeaways

Simon Property Group reported a strong fourth quarter and full year 2023, with net income attributable to common stockholders increasing to $747.5 million, or $2.29 per diluted share. Funds From Operations (FFO) also saw growth, reaching $1.382 billion, or $3.69 per diluted share. The company's domestic property Net Operating Income (NOI) increased by 7.3%, and portfolio NOI increased by 7.2%.

Net income attributable to common stockholders increased to $747.5 million, or $2.29 per diluted share.

Funds From Operations (FFO) grew to $1.382 billion, or $3.69 per diluted share.

Domestic property Net Operating Income (NOI) increased by 7.3%.

Portfolio NOI increased by 7.2%.

Total Revenue
$1.53B
Previous year: $1.4B
+9.1%
EPS
$3.69
Previous year: $3.4
+8.5%
US Malls/Outlets Occupancy
95.8%
Previous year: 94.9%
+0.9%
Gross Profit
$1.3B
Previous year: $1.13B
+14.8%
Cash and Equivalents
$2.17B
Previous year: $622M
+248.9%
Total Assets
$34.3B
Previous year: $33B
+3.9%

Simon

Simon

Simon Revenue by Segment

Forward Guidance

The Company currently estimates net income to be within a range of $6.45 to $6.70 per diluted share and FFO to be within a range of $11.85 to $12.10 per diluted share for the year ending December 31, 2024.

Positive Outlook

  • Estimated net income to be within a range of $6.45 to $6.70 per diluted share
  • FFO to be within a range of $11.85 to $12.10 per diluted share
  • Strong FFO growth
  • Increased occupancy
  • Strategic financing transactions

Challenges Ahead

  • Changes in economic and market conditions
  • Inability to renew leases and relet vacant space
  • Potential loss of anchor stores or major tenants
  • Inability to collect rent due to bankruptcy or insolvency of tenants
  • Intensely competitive market environment in the retail industry, including e-commerce

Revenue & Expenses

Visualization of income flow from segment revenue to net income