Simon Property(SPG) - 2025 Q2 - Quarterly Report

Part I — Financial Information Item 1. Consolidated Financial Statements The report presents unaudited consolidated financial statements for Simon and its Operating Partnership Consolidated Financial Statements of Simon Property Group, Inc. Simon Property Group, Inc. reported lower net income and EPS for H1 2025 despite an increase in total assets Simon Property Group, Inc. - Key Financials (Six Months Ended June 30, in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | $2,971.5 | $2,900.9 | | Consolidated Net Income | $1,121.5 | $1,410.6 | | Net Income Attributable to Common Stockholders | $969.8 | $1,225.2 | | Diluted EPS | $2.97 | $3.76 | Simon Property Group, Inc. - Balance Sheet Summary (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $33,295.6 | $32,405.7 | | Total Liabilities | $30,204.5 | $28,806.2 | | Total Stockholders' Equity | $2,451.5 | $2,941.9 | Simon Property Group, Inc. - Cash Flow Summary (Six Months Ended June 30, in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $2,042.6 | $1,836.3 | | Net Cash (Used in) Provided by Investing Activities | $(1,088.4) | $588.2 | | Net Cash Used in Financing Activities | $(1,123.0) | $(2,359.0) | | (Decrease) Increase in Cash | $(168.9) | $65.4 | Consolidated Financial Statements of Simon Property Group, L.P. The Operating Partnership's financials mirror Simon's, with key differences in the equity section Simon Property Group, L.P. - Key Financials (Six Months Ended June 30, in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | $2,971.5 | $2,900.9 | | Consolidated Net Income | $1,121.5 | $1,410.6 | | Net Income Attributable to Unitholders | $1,120.6 | $1,408.7 | | Diluted EPU | $2.97 | $3.76 | - The assets and liabilities of the Operating Partnership are the same as Simon Property Group, Inc, with the main balance sheet difference being the presentation of Partners' Equity instead of Stockholders' Equity[11][14][38] Condensed Notes to Consolidated Financial Statements Notes detail acquisitions, investments, debt structure, and reconciliations of key financial metrics - As of June 30, 2025, the company owned or had an interest in 194 U.S. properties and 38 international properties, along with an 88% interest in TRG and a 22.4% equity stake in Klépierre[51] - In 2025, the company acquired the remaining interests in Brickell City Centre's retail component for $497.7 million, Briarwood Mall, and two luxury outlets in Italy for $392.4 million[98][99][100] - In Q1 2024, the company sold its remaining interest in Authentic Brands Group (ABG) for $1.2 billion, resulting in a pre-tax gain of $414.8 million[116] Consolidated Debt Summary (June 30, 2025) | Debt Type | Amount | | :--- | :--- | | Mortgages and unsecured indebtedness | $25,401.3M | | - Senior Unsecured Notes | $18.8B | | - Unsecured Term Loan | €350.0M | | - Credit Facility Outstanding | $460.0M | | - Supplemental Facility Outstanding | €500.0M | | - Mortgage Debt | $5.3B | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management analyzes a decrease in EPS due to a prior-year gain, highlighting strong core operational growth Key Performance Indicators (U.S. Malls and Premium Outlets) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Ending Occupancy | 96.0% | 95.6% | | Average Base Minimum Rent (psf) | $58.70 | $57.94 | - The decrease in diluted EPS for H1 2025 was primarily driven by a $414.8 million pre-tax gain on the sale of the company's ABG interest in Q1 2024, which was not repeated in 2025[197] - Portfolio Net Operating Income (NOI) increased by 4.2% for the first six months of 2025 compared to the same period in 2024, indicating strong underlying operational performance[200] FFO Reconciliation Summary (Diluted Per Share) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Diluted Net Income per Share | $2.97 | $3.76 | | Diluted FFO per Share | $5.82 | $6.46 | | Real Estate FFO per Share | $6.01 | $5.84 | Item 3. Qualitative and Quantitative Disclosures About Market Risk Market risk disclosures remain materially unchanged from the 2024 Annual Report on Form 10-K - There have been no material changes in market risk disclosures since the 2024 Annual Report on Form 10-K[279] Item 4. Controls and Procedures Management confirmed the effectiveness of disclosure controls with no material changes to internal controls - Management, including the CEO and CFO, concluded that disclosure controls and procedures for both Simon and the Operating Partnership were effective as of June 30, 2025[281][284] - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal control over financial reporting for either entity[282][285] Part II — Other Information Item 1. Legal Proceedings Ongoing legal proceedings are not expected to have a material adverse effect on the company - The company does not expect current legal proceedings to have a material adverse effect on its financial condition or operations[286] Item 1A. Risk Factors No material changes to risk factors were reported since the 2024 Annual Report on Form 10-K - No material changes to the company's risk factors were reported for the quarter[287] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered equity sales or share repurchases during the quarter - No unregistered sales of equity securities were made by either Simon or the Operating Partnership during Q2 2025[288][290] - As of June 30, 2025, no shares had been repurchased under the $2.0 billion stock repurchase plan authorized in February 2024[289] - The Operating Partnership redeemed 300 limited partner units for $50,000 during the quarter[291] Item 5. Other Information The Audit Committee approved additional audit and non-audit services from its accounting firm - The Audit Committee approved additional audit and non-audit services from Ernst & Young LLP during the quarter[294] Item 6. Exhibits This section lists all exhibits filed with the report, including required CEO/CFO certifications - The report includes standard exhibits such as organizational documents and CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906[296]