Simon® Reports First Quarter 2025 Results and Reaffirms Full Year 2025 Real Estate FFO Per Share Guidance

12.05.25 22:05 Uhr

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INDIANAPOLIS, May 12, 2025 /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, 2025.

Simon (PRNewsfoto/Simon)

"Our first quarter results underscore the strength of our business," said David Simon, Chairman, Chief Executive Officer and President. "We delivered strong financial and operational performance and enhanced our portfolio with the acquisition of The Mall Luxury Outlets in Italy and the successful opening of Jakarta Premium Outlets in Indonesia.  As macroeconomic conditions continue to shift, we are well-positioned with a fortress balance sheet and a proven track record of navigating successfully through a wide range of economic cycles."  

Results for the Quarter

  • Net income attributable to common stockholders was $413.7 million, or $1.27 per diluted share, as compared to $731.7 million, or $2.25 per diluted share in 2024.
    • Net income for the first quarter of 2025 includes losses of $54.8 million, or $0.15 per diluted share, primarily due to an unrealized mark-to-market loss in fair value adjustment of the Klépierre exchangeable bonds the Company issued in November 2023.
    • Net income for the first quarter of 2024 included after-tax net gains of $303.9 million, or $0.81 per diluted share, primarily resulting from the sale of the Company's remaining ownership interest in Authentic Brands Group.    
  • Real Estate Funds From Operations ("FFO") was $1.113 billion, or $2.95 per diluted share as compared to $1.090 billion, or $2.91 per diluted share in the prior year.
  • FFO was $1.005 billion, or $2.67 per diluted share as compared to $1.334 billion, or $3.56 per diluted share in the prior year, inclusive of the current year and prior year period items mentioned above. 
  • Domestic property Net Operating Income ("NOI") increased 3.4% and portfolio NOI increased 3.6% compared to the prior year period. 

U.S. Malls and Premium Outlets Operating Statistics

  • Occupancy at March 31, 2025 was 95.9%, a 0.4% increase compared to 95.5% at March 31, 2024.
  • Base minimum rent per square foot was $58.92 at March 31, 2025, compared to $57.53 at March 31, 2024, an increase of 2.4%. 
  • Reported retailer sales per square foot was $733 for the trailing 12 months ended March 31, 2025.

Acquisition Activity and Development Activity
On January 30, 2025, the Company completed the acquisition of two luxury outlets in Italy: The Mall Firenze in Leccio, near Florence and The Mall Sanremo, on the Italian Riviera. 

On March 6, 2025, Jakarta Premium Outlets (Tangerang, Indonesia) opened with 302,000 square feet featuring global and local brands and international dining options.  Simon owns 50% of this center. 

Capital Markets and Balance Sheet Liquidity
During the quarter, the Company completed 12 secured loan transactions totaling approximately $2.6 billion (U.S. dollar equivalent).  The weighted average interest rate on these loans was 5.73%.    

As of March 31, 2025, Simon had approximately $10.1 billion of liquidity consisting of $1.9 billion of cash on hand, including its share of joint venture cash, and $8.2 billion of available capacity under its revolving credit facilities.

Dividends
Today, Simon's Board of Directors declared a quarterly common stock dividend of $2.10 for the second quarter of 2025.  This is an increase of $0.10, or 5.0% year-over-year.  The dividend will be payable on June 30, 2025 to shareholders of record on June 9, 2025. 

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, 2025 to shareholders of record on June 16, 2025. 

2025 Guidance
The Company's estimates for net income attributable to common stockholders per diluted share and Real Estate FFO per diluted share for the year ending December 31, 2025 are included in the table below and are reconciled in the Company's supplemental information.  The Company is reaffirming its outlook for Real Estate FFO of $12.40 to $12.65 per diluted share. 


Low

High


End

End

Estimated net income attributable to common stockholders per diluted share

$6.67

$6.92

Estimated Real Estate FFO per diluted share

$12.40

$12.65

Conference Call
Simon will hold a conference call to discuss the quarterly financial results today from 5:00 p.m. to 6:00 p.m. Eastern Daylight Time, Monday, May 12, 2025.  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 19, 2025.  To access the audio replay, dial 1-844-512-2921 (international +1-412-317-6671) passcode 13753110. 

Supplemental Materials and Website
Supplemental information on our first quarter 2025 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, Real Estate FFO, Real Estate FFO per share and portfolio NOI growth which are financial performance measures not defined by generally accepted accounting principles in the United States ("GAAP"). Real estate FFO is FFO of the operating partnership less other platform investments and loss (gain) due to disposal, exchange, or revaluation of equity interests, in each case, net of tax; and unrealized losses (gains) in fair value of publicly traded equity instruments and derivative instrument, net.  Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in Simon's supplemental information for the quarter.  FFO and NOI 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: the intensely competitive market environment in the retail industry, including e-commerce; the inability to renew leases and relet vacant space at existing properties on favorable terms;  the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; the potential loss of anchor stores or major tenants; an increase in vacant space at our properties; the loss of key management personnel; changes in economic and market conditions that may adversely affect the general retail environment, including but not limited to those caused by inflation, the impact of tariffs and global trade disruptions on us to the extent impacting our tenants, recessionary pressures, wars, escalating geopolitical tensions as a result of the war in Ukraine and the conflicts in the Middle East, and supply chain disruptions; the potential for violence, civil unrest, criminal activity or terrorist activities at our properties; the availability of comprehensive insurance coverage; security breaches that could compromise our information technology or infrastructure; changes in market rates of interest; our international activities subjecting us to risks that are different from or greater than those associated with our domestic operations, including changes in foreign exchange rates; the impact of our substantial indebtedness on our future operations, including covenants in the governing agreements that impose restrictions on us that may affect our ability to operate freely; 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; our continued ability to maintain our status as a REIT; changes in tax laws or regulations that result in adverse tax consequences; risks associated with the acquisition, development, redevelopment, expansion, leasing and management of properties; the inability to lease newly developed properties on favorable terms; risks relating to our joint venture properties, including guarantees of certain joint venture indebtedness; reducing emissions of greenhouse gases; environmental liabilities; natural disasters; uncertainties regarding the impact of pandemics, epidemics or public health crises, and the associated governmental restrictions on our business, financial condition, results of operations, cash flow and liquidity; and general risks related to real estate investments, including the illiquidity of real estate investments.

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 real estate investment trust engaged 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.

 

Simon Property Group, Inc.

Unaudited Consolidated Statements of Operations

(Dollars in thousands, except per share amounts)



For the Three Months


Ended March 31,


2025

2024




REVENUE:



Lease income

$ 1,367,428

$ 1,302,671

Management fees and other revenues

33,792

29,455

Other income

71,792

110,464

Total revenue

1,473,012

1,442,590




EXPENSES:



Property operating

136,821

126,114

Depreciation and amortization

328,051

307,369

Real estate taxes

107,452

109,210

Repairs and maintenance

30,142

25,728

Advertising and promotion

34,257

28,081

Home and regional office costs

65,066

60,723

General and administrative

12,629

9,132

Other

30,978

41,053

Total operating expenses

745,396

707,410




OPERATING INCOME BEFORE OTHER ITEMS

727,616

735,180




Interest expense

(226,995)

(230,623)

(Loss) gain due to disposal, exchange, or revaluation of equity interests, net

(23,992)

414,769

Income and other tax benefit (expense)

7,637

(47,603)

Income (loss) from unconsolidated entities

30,359

(34,342)

Unrealized losses in fair value of publicly traded equity instruments and



derivative instrument, net

(36,765)

(7,192)

Gain on acquisition of controlling interest, sale or disposal of, or recovery on, 



assets and interests in unconsolidated entities and impairment, net

-

10,966




CONSOLIDATED NET INCOME

477,860

841,155




Net income attributable to noncontrolling interests 

63,327

108,619

Preferred dividends

834

834




NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$ 413,699

$ 731,702







BASIC AND DILUTED EARNINGS PER COMMON SHARE:



Net income attributable to common stockholders

$ 1.27

$ 2.25

 

Simon Property Group, Inc.

Unaudited Consolidated Balance Sheets

(Dollars in thousands, except share amounts)



March 31,

December 31,


2025

2024

ASSETS:



Investment properties, at cost

$ 40,837,785

$ 40,242,392

Less - accumulated depreciation

19,296,503

19,047,078


21,541,282

21,195,314

Cash and cash equivalents

1,380,008

1,400,345

Tenant receivables and accrued revenue, net

779,888

796,513

Investment in TRG, at equity

3,015,484

3,069,297

Investment in Klépierre, at equity

1,398,028

1,384,267

Investment in other unconsolidated entities, at equity

2,554,065

2,670,739

Right-of-use assets, net

517,531

519,607

Deferred costs and other assets

1,314,857

1,369,609

Total assets

$ 32,501,143

$ 32,405,691




LIABILITIES:



Mortgages and unsecured indebtedness

$ 24,753,200

$ 24,264,495

Accounts payable, accrued expenses, intangibles, and deferred revenues

1,487,366

1,712,465

Cash distributions and losses in unconsolidated entities, at equity

1,729,919

1,680,431

Dividend payable

1,736

2,410

Lease liabilities

518,174

520,283

Other liabilities

743,173

626,155

Total liabilities

29,233,568

28,806,239




Commitments and contingencies



Limited partners' preferred interest in the Operating Partnership and noncontrolling



redeemable interests

241,766

184,729




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

40,696

40,778




Common stock, $0.0001 par value, 511,990,000 shares authorized, 343,062,397 and



342,945,839 issued and outstanding, respectively

33

33




Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000



issued and outstanding

-

-




Capital in excess of par value

11,594,691

11,583,051

Accumulated deficit

(6,709,618)

(6,382,515)

Accumulated other comprehensive loss

(219,745)

(193,026)

Common stock held in treasury, at cost, 16,645,358 and 16,675,701 shares, respectively

(2,100,482)

(2,106,396)

Total stockholders' equity

2,605,575

2,941,925

Noncontrolling interests

420,234

472,798

Total equity

3,025,809

3,414,723

Total liabilities and equity

$ 32,501,143

$ 32,405,691

 

Simon Property Group, Inc.

Unaudited Joint Venture Combined Statements of Operations

(Dollars in thousands)



For the Three Months Ended March 31


2025

2024




REVENUE:



Lease income

$ 749,807

$ 752,030

Other income

94,066

90,992

Total revenue

843,873

843,022




OPERATING EXPENSES:



Property operating

166,647

161,044

Depreciation and amortization

159,012

159,815

Real estate taxes

58,793

63,180

Repairs and maintenance

20,763

19,492

Advertising and promotion

22,150

21,663

Other

56,847

54,881

Total operating expenses

484,212

480,075




OPERATING INCOME BEFORE OTHER ITEMS

359,661

362,947




Interest expense

(170,368)

(176,751)

NET INCOME

$ 189,293

$ 186,196




Third-Party Investors' Share of Net Income

$ 96,594

$ 94,370




Our Share of Net Income

92,699

91,826

Amortization of Excess Investment (A)

(14,465)

(14,697)




Income from Unconsolidated Entities (B)

$ 78,234

$ 77,129



Note:

The above financial presentation does not include any information related to our investments in Klépierre S.A. 


("Klépierre"), The Taubman Realty Group ("TRG") and other platform investments. For additional information, see footnote B.

 

Simon Property Group, Inc.

Unaudited Joint Venture Combined Balance Sheets

(Dollars in thousands)



March 31,

December 31,


2025

2024

Assets:



Investment properties, at cost

$ 19,014,468

$ 18,875,241

Less - accumulated depreciation

9,100,476

8,944,188


9,913,992

9,931,053

Cash and cash equivalents

1,154,946

1,270,594

Tenant receivables and accrued revenue, net

469,879

533,676

Right-of-use assets, net

115,123

113,014

Deferred costs and other assets

540,350

531,059

Total assets

$ 12,194,290

$ 12,379,396




Liabilities and Partners' Deficit:



Mortgages

$ 13,718,783

$ 13,666,090

Accounts payable, accrued expenses, intangibles, and deferred revenue

925,463

1,037,015

Lease liabilities

106,446

104,120

Other liabilities

346,606

363,488

Total liabilities

15,097,298

15,170,713




Preferred units

67,450

67,450

Partners' deficit

(2,970,458)

(2,858,767)

Total liabilities and partners' deficit

$ 12,194,290

$ 12,379,396




Our Share of:



Partners' deficit

$ (1,231,356)

$ (1,180,960)

Add: Excess Investment (A)

1,065,955

1,077,204

Our net Investment in unconsolidated entities, at equity

$ (165,401)

$ (103,756)



Note:

The above financial presentation does not include any information related to our investments in Klépierre,


TRG and other platform investments. 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 and Real Estate FFO












For the Three Months Ended






March 31,






2025


2024









Consolidated Net Income (D)



$           477,860


$         841,155

Adjustments to Arrive at FFO:















Depreciation and amortization from consolidated 





     properties 



324,322


303,672


Our share of depreciation and amortization from





     unconsolidated entities, including Klépierre, TRG and other corporate investments

208,964


204,979


Gain on acquisition of controlling interest, sale or disposal of, or recovery on,





assets and interests in unconsolidated entities and impairment, net

-


(10,966)


Net loss attributable to noncontrolling interest holders in





     properties



1,292


1,470


Noncontrolling interests portion of depreciation and amortization, gain on consolidation of properties,





and loss (gain) on disposal of properties

(5,993)


(5,510)


Preferred distributions and dividends

(1,126)


(1,266)

FFO of the Operating Partnership


$         1,005,319


$      1,333,534

















FFO of the Operating Partnership


$         1,005,319


$      1,333,534


Loss (gain) due to disposal, exchange, or revaluation of equity interests, net of tax

17,994


(311,077)


Other platform investments, net of tax

52,843


60,776


Unrealized losses in fair value of publicly traded equity instruments and derivative instrument, net

36,765


7,192

Real Estate FFO




$         1,112,921


$      1,090,425









Diluted net income per share to diluted FFO per share reconciliation:




Diluted net income per share



$                 1.27


$              2.25


Depreciation and amortization from consolidated properties





     and our share of depreciation and amortization from unconsolidated 





     entities, including Klépierre, TRG and other corporate investments, net of noncontrolling 





     interests portion of depreciation and amortization

1.40


1.34


Gain on acquisition of controlling interest, sale or disposal of, or recovery on,





assets and interests in unconsolidated entities and impairment, net

-


(0.03)

Diluted FFO per share 



$                 2.67


$              3.56


Loss (gain) due to disposal, exchange, or revaluation of equity interests, net of tax

0.05


(0.83)


Other platform investments, net of tax

0.13


0.16


Unrealized losses in fair value of publicly traded equity instruments and derivative instrument, net

0.10


0.02

Real Estate FFO per share



$                 2.95


$              2.91






1.4 %











Details for per share calculations:













FFO of the Operating Partnership


$         1,005,319


$      1,333,534

Diluted FFO allocable to unitholders


(135,284)


(173,804)

Diluted FFO allocable to common stockholders

$           870,035


$      1,159,730









Basic and Diluted weighted average shares outstanding

326,313


325,912

Weighted average limited partnership units outstanding

50,740


48,843

Basic and Diluted weighted average shares and units outstanding

377,053


374,755









Basic and Diluted FFO per Share


$                 2.67


$              3.56

    Percent Change




-25.0 %



 

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, TRG and other platform investments.  Amounts included in Footnote D below exclude our share of related activity for our investments in Klépierre, TRG and other platform investments.  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, FFO per share, Real Estate FFO and Real Estate 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 retail 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: 
























-

Gain on land sales of $0.0 million and $7.5 million for the three months ended March 31, 2025 and 2024, respectively.














-

Straight-line adjustments increased (decreased) income by $2.2 million and ($4.6) million for the three months ended March 31, 2025 and 2024, respectively.














-

Amortization of fair market value of leases increased income by $0.3 million and $0.2 million for the three months ended March 31, 2025 and 2024, respectively.

 

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