Preliminary data indicates strong traffic across Simon's Malls, Premium Outlets and Mills centers for the first holiday shopping weekend of the seasonINDIANAPOLIS, Dec. 2, 2024 /PRNewswire/ -- Simon®, a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations, saw a remarkably strong start to the holiday shopping season on Black Friday that continued throughout the weekend, including a 6.4% increase in year-over-year traffic at its centers a ...

OSAGE BEACH, Mo., Nov. 22, 2024 /PRNewswire/ -- Sky Real Estate is excited to announce its acquisition of the Osage Beach Outlet Marketplace from a subsidiary of Simon Property Group, Inc (NYSE: SPG). The 391,000-square-foot shopping center, located on a 60-acre parcel along Osage Beach Parkway, has been a cornerstone of the Lake of the Ozarks region for decades.The outlet center features key tenants such as Polo Ralph Lauren, Under Armour, Bath & Body Works, and LOFT. Sky Real Estate looks forward to conti ...

Fundamental Changes to the Mall Landscape - Malls are regaining popularity, especially among Gen Z, who value face-to-face interaction and view malls as social spaces rather than inconveniences [2][3] - Gen Z's preference for malls is supported by retailers like Shein and Skims, which believe in the mall product and are targeting younger consumers [4] - Occupancy rates at Simon Property Group (SPG) malls increased to 96.2% in Q3 2024, up from 95.2% in Q3 2023, indicating strong demand [4] - Base minimum rent per square foot rose to $57.71 in Q3 2024, a 2.3% increase from $56.41 in Q3 2023, reflecting higher demand for premium mall space [4] - Two major changes have improved mall fundamentals: significant reduction in mall space supply through demolition/conversion and increased demand for retail space [5] SPG's Financials, Earnings, and Leasing - SPG signed approximately 1,200 leases for 4 million square feet in Q3 2024, with 3,900 leases signed year-to-date for 15 million square feet, expected to generate over $1 billion in revenue [6] - Retailer sales per square foot reached $737 for malls and premium outlets combined, indicating strong tenant performance [6] - Tenant occupancy cost, a measure of lease affordability relative to retailer income, is at a healthy 12.8%, signaling a normalized leasing environment [7] - SPG's net operating income (NOI) has fully recovered to pre-COVID levels, with dividends also rebounding to $2.10 per quarter as of Q3 2024 [8][9] - SPG's 2024 FFO and AFFO are projected at $12.80 and $11.39, respectively, surpassing 2019 levels of $12.04 and $10.83 [9] Valuation and Market Position - SPG is trading at a discounted valuation of 13X trailing FFO, compared to its historical average of 20X, despite strong fundamentals and growth prospects [10][13] - The S&P 500's trailing earnings multiple has risen from 20X to 29X over the past decade, while SPG's multiple has declined, creating a valuation gap [11][13] - SPG's real estate-derived FFO grew by 4.8% in Q3 2024 and 4.1% year-to-date, with a projected long-term growth rate of 4%-5% [19] - A fair value multiple of 18X real estate FFO suggests a target price of $214, representing 23% upside from current levels [20] Industry Leadership and Competitive Advantages - SPG is an industry leader with a track record of AFFO/share growth, a large market capitalization, and an investment-grade balance sheet (A-) [10] - The company has a well-diversified portfolio geographically, by tenant industry, and by product price point, enhancing its resilience to economic downturns [17] - SPG's leasing momentum is strong, with favorable lease terms including fewer co-tenancy clauses, fewer tenant renewal options, long lease terms, and escalators [6]

Shares of Simon Property (SPG) have rallied 16.9% over the past three months, outperforming the industry's 7.1% growth. The retail real estate investment trust's (REIT) portfolio of premium retail assets in the United States and abroad, the adoption of omnichannel retailing, a focus on strategic acquisitions and mixed-use developments and solid balance sheet strength have enabled it to ride the growth curve so far. In early November, SPG reported third-quarter funds from operations (FFO) per share of $2.84, ...

Table of Contents Emerging growth company ◻ Simon Property Group, L.P.: Large accelerated filer ◻ Accelerated filer ◻ Non-accelerated filer ⌧ Smaller reporting company ◻ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 SIMON PROPERTY ...

iREIT+HOYA Capital is the premier income-focused investing service on Seeking Alpha. Our focus is on income-producing asset classes that offer the opportunity for sustainable portfolio income , diversification , and inflation hedging . Get started with a Free Two-Week Trial and take a look at our top ideas across our exclusive income-focused portfolios.Some investors may believe that in order to achieve high returns, you must take on high risk. However, that’s simply not the case when it comes to managing a ...

Simon Property Group, Inc. (SPG) reported third-quarter funds from operations (FFO) per share of $2.84, missing the Zacks Consensus Estimate of $3. The figure decreased from $3.20 reported in the year-ago period.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Results reflect higher interest expenses on a year-over-year basis. However, an increase in revenues, backed by a rise in the base minimum rent per square foot and occupancy levels, supported the results to some extent. SPG rai ...

Financial Data and Key Metrics - Real estate FFO was $3.05 per share in Q3 2024, a 4.8% growth compared to $2.91 in the prior year [9] - Third quarter funds from operations were $1.07 billion or $2.84 per share, compared to $1.2 billion or $3.20 per share last year [10] - Domestic NOI increased 5.4% year-over-year, while portfolio NOI (including international properties) grew 5% at constant currency [13] - Malls and Outlet occupancy reached 96.2%, a 1% increase compared to the prior year, with The Mills occupancy at 98.6% [14] - Average base minimum rent for Malls and Outlets increased 2.3% year-over-year, and The Mills increased 4.5% [14] - Retailer sales per square foot were $737, up approximately 1% year-over-year, with total sales volumes up 1.5% [16] Business Line Data and Key Metrics - The company signed approximately 1,200 leases for 4 million square feet in Q3, with over 3,900 leases signed year-to-date, expected to generate more than $1 billion in revenue [15] - SPARC and J.C. Penney recorded sequential improvements in comp sales during Q3, setting up well for the holiday season [19] - The company's OPI (Other Platform Investments) underperformed due to cautious spending by lower-income consumers, particularly affecting Forever 21 and Reebok [18] Market Data and Key Metrics - The company opened Tulsa Premium Outlets at 100% lease and expanded Busan Premium Outlets in South Korea [17] - Development and redevelopment projects are underway with a net cost of $1.3 billion at a blended yield of 8% [17] - The company's digital marketplace, ShopSimon, was rebranded and expanded, leveraging a shopper email list of over 25 million customers [22] Company Strategy and Industry Competition - The company focuses on improving the merchandise mix and re-merchandising centers, rather than solely focusing on rent increases [27][28] - Construction costs have risen 60% since pre-pandemic levels, limiting new supply and benefiting the company's position in the market [29] - The company is investing in mixed-use developments, with a pipeline of around $4 billion, including over $1 billion in residential projects [34][35] Management Commentary on Operating Environment and Future Outlook - Demand for retail space remains strong, with a broad spectrum of tenants showing interest in the company's portfolio [7] - The company raised its dividend to $2.10 per share, marking a 10.5% year-over-year increase and returning to pre-pandemic levels [23] - Guidance for the full year remains at $12.80 to $12.90 per share, excluding non-cash losses from Klépierre exchangeable bonds [24] Other Important Information - The company amended and extended its $3.5 billion revolving credit facility and issued $1 billion in senior notes with a 4.75% interest rate [20] - Refinancings of 14 property mortgages were completed, totaling approximately $1.3 billion at an average rate of 6.13% [21] - The company ended the quarter with approximately $11.1 billion in liquidity [21] Q&A Session Summary Question: Leasing momentum and pricing power [26] - The company focuses on improving the merchandise mix and re-merchandising centers, rather than solely focusing on rent increases [27][28] - Construction costs have risen 60% since pre-pandemic levels, limiting new supply and benefiting the company's position in the market [29] Question: Development and redevelopment pipeline [34] - The company has a pipeline of around $4 billion, including over $1 billion in residential projects [34][35] - Mixed-use opportunities and anchor replacements remain a focus, with significant potential for growth [34] Question: Omnichannel experience and customer engagement [41] - The company emphasizes the mall as a unique gathering place and is investing in digital initiatives like ShopSimon to enhance the omnichannel experience [42][45] - Digital commerce accounts for 14-15% of total commerce, with potential for further growth [45] Question: ShopSimon and logistics [50] - The company sees potential in last-mile distribution and is exploring opportunities to integrate logistics into its retail centers [51][52] Question: Occupancy and NOI growth [86] - The company expects continued momentum in NOI growth, supported by leasing activity, capital investments, and limited new supply [87] Question: Acquisition opportunities and development spend [91] - The company remains open to acquisition opportunities but is being selective, with a focus on high-quality retail real estate [92] - Development and redevelopment spending is expected to remain around $1.5 billion annually [96] Question: ShopSimon progress and logistics [98] - The company is making progress with ShopSimon, leveraging its 25 million email list and adding loyalty programs to drive growth [100] Question: Domestic NOI growth [102] - The company is seeing strong momentum in Domestic NOI growth, with further details to be provided in the next earnings call [103]

Simon Property (SPG) reported $1.48 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 4.9%. EPS of $2.84 for the same period compares to $1.82 a year ago.The reported revenue represents a surprise of +1.28% over the Zacks Consensus Estimate of $1.46 billion. With the consensus EPS estimate being $3.00, the EPS surprise was -5.33%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...

Simon Property (SPG) came out with quarterly funds from operations (FFO) of $2.84 per share, missing the Zacks Consensus Estimate of $3 per share. This compares to FFO of $3.20 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of -5.33%. A quarter ago, it was expected that this shopping mall real estate investment trust would post FFO of $2.93 per share when it actually produced FFO of $2.90, delivering a surprise of -1.02%. Over the l ...