FINANCIAL AND OPERATING HIGHLIGHTS c Funds from Operations (1) (FFO) per diluted share was $2.28 for the quarter as compared to $2.38 in the prior year period. Results for the three months ended March 31, 2014 in- cluded FFO per diluted share of $0.24 from the Washington Prime Group Inc. (“WPG”) properties that were spun-off effective May 28, 2014. Growth in FFO per diluted share for the three months ended March 31, 2015 was 6.5%, excluding the FFO from the WPG properties in the prior year period. c Growth in comparable property net operating income was 3.5%. (2) c Ending occupancy increased 30 basis points year-over-year to 95.8%. (3) c Releasing spread was $11.19 per square foot, an increase of 18.9%. c Total sales per square foot were $621, an increase of 7.8%. (3) c Declared quarterly common stock dividend in April 2015 of $1.50 per share, a year- over-year increase of 15.4%. Record date May 15, 2015, payable on May 29, 2015. DEVELOPMENT ACTIVITY c During the quarter, we completed a 265,000 square foot expansion of Yeoju Premium Outlets, a highly productive center in Seoul, Korea. c Construction continues on other significant expansion projects including Roosevelt Field, Del Amo Fashion Center, King of Prussia, The Galleria in Houston, Woodbury Common Premium Outlets, Las Vegas North Premium Outlets, San Francisco Premium Outlets and Chicago Premium Outlets. c At quarter end, redevelopment and expansion projects, including the addition of new anchors, were underway at 24 properties in the U.S. and Asia. 2015 FIRST QUARTER FACT SHEET “ We are off to a strong start in 2015 with the acquisition of two significant properties and the reporting of strong financial and operational results. Given our accomplishments this quarter and our current view for the remainder of 2015, today we raised our quarterly dividend and are increasing our full-year 2015 guidance.” David Simon Chairman & CEO c Construction continues on three new Premium Outlets and one new Designer Outlet opening in 2015: – Vancouver Designer Outlet in Vancouver, British Columbia, Canada is a 242,000 square foot center scheduled to open in July of 2015. Simon owns a 45% interest in this project. – Gloucester Premium Outlets in Gloucester, New Jersey, serving the greater Philadelphia metropolitan area, is a 375,000 square foot center scheduled to open in August of 2015. Simon owns a 50% interest in this project. – Tucson Premium Outlets is a 366,000 square foot center scheduled to open in September of 2015. Simon owns 100% of this project. – Tampa Premium Outlets is a 441,000 square foot center scheduled to open in October of 2015. Simon owns 100% of this project. c Simon’s share of the costs of all development and redevelopment projects under construction at quarter end was approximately $2.1 billion ACQUISITIONS c In January 2015, we completed the acquisition of two properties – Jersey Gardens in Elizabeth, New Jersey (renamed The Mills at Jersey Gardens) and University Park Village in Fort Worth, Texas. The aggregate purchase price was $1.09 billion which includes the assumption of existing mortgage debt of $405 million. JOINT VENTURE TRANSACTIONS c In February 2015, we entered into an agreement with Hudson’s Bay Company to form a joint venture. The joint venture will build on the strength of HBC’s existing real estate assets and identify new real estate growth opportunities with a focus on credit tenant, net-leased and multi-tenanted retail buildings in the United States and internationally. c Subsequent to quarter end, we created a joint venture with Sears Holdings Corporation that includes 10 Sears stores located at our malls. Sears Holdings will lease back and continue to operate the existing stores at the properties and the joint venture will have the ability to create additional value through re-developing the contributed properties and re-leasing space at each property to third-party tenants. In addition to the joint venture, we separately acquired a Sears store at the La Plaza Mall in McAllen, Texas. CAPITAL MARKETS c During the quarter, the Company extended and expanded its $2.0 billion revolving credit facility, increasing the revolver’s capacity to $2.75 billion. This facility can be further increased to $3.5 billion during its term, which will initially mature on June 30, 2019 and can be extended for an additional year to June 30, 2020 at our sole option. The pricing on the facility was reduced to LIBOR plus 80 basis points and the facility fee was reduced to 10 basis points. c The Company also increased the maximum aggregate program size of its global commercial paper note program from $500 million to $1 billion, or the non-U.S. dollar equivalent thereof. c We closed or locked rate on three new loans totaling approximately $1.9 billion, or the non-U.S. dollar equivalent thereof, of which SPG’s share is $0.9 billion. The weighted average interest rate on these loans is 3.0% and term is 8.4 years. c Subsequent to quarter end, the Company announced that its Board of Directors authorized a common stock repurchase program. Under the program, the Company may purchase up to $2 billion of its common stock over the next 24 months as market conditions warrant. The shares may be purchased in the open market or in privately negotiated transactions. (1) Please refer to back cover for information on non- GAAP financial measures (2) Combined information for U.S. Malls, Premium Outlets and The Mills (3) As compared to the first quarter of 2014, as reported; combined information for U.S. Malls and Premium Outlets
Transcript
FINANCIAL AND OPERATINGHIGHLIGHTSc Funds from Operations (1) (FFO) per diluted
share was $2.28 for the quarter as compared
to $2.38 in the prior year period. Results for
the three months ended March 31, 2014 in-
cluded FFO per diluted share of $0.24 from
the Washington Prime Group Inc. (“WPG”)
properties that were spun-off effective May
28, 2014. Growth in FFO per diluted share
for the three months ended March 31, 2015
was 6.5%, excluding the FFO from the
WPG properties in the prior year period.
c Growth in comparable property net operating
income was 3.5%.(2)
c Ending occupancy increased 30 basis points
year-over-year to 95.8%.(3)
c Releasing spread was $11.19 per square foot,
an increase of 18.9%.
c Total sales per square foot were $621, an
increase of 7.8%.(3)
c Declared quarterly common stock dividend
in April 2015 of $1.50 per share, a year-
over-year increase of 15.4%. Record date
May 15, 2015, payable on May 29, 2015.
DEVELOPMENT ACTIVITYc During the quarter, we completed a 265,000
square foot expansion of Yeoju Premium
Outlets, a highly productive center in
Seoul, Korea.
c Construction continues on other significant
expansion projects including Roosevelt
Field, Del Amo Fashion Center, King of
Prussia, The Galleria in Houston, Woodbury
Common Premium Outlets, Las Vegas
North Premium Outlets, San Francisco
Premium Outlets and Chicago Premium
Outlets.
c At quarter end, redevelopment and expansion
projects, including the addition of new
anchors, were underway at 24 properties in
the U.S. and Asia.
2015 FIRST QUARTER FACT SHEET“ We are off to a strong start in 2015 with the acquisition of two significant
properties and the reporting of strong financial and operational results. Given our accomplishments this quarter and our current view for the remainder of 2015, today we raised our quarterly dividend and are increasing our full-year 2015 guidance.”
David Simon Chairman & CEO
c Construction continues on three new Premium
Outlets and one new Designer Outlet opening
in 2015:
– Vancouver Designer Outlet in Vancouver,
British Columbia, Canada is a 242,000
square foot center scheduled to open in
July of 2015. Simon owns a 45% interest
in this project.
– Gloucester Premium Outlets in Gloucester,
New Jersey, serving the greater Philadelphia
metropolitan area, is a 375,000 square
foot center scheduled to open in August
of 2015. Simon owns a 50% interest in
this project.
– Tucson Premium Outlets is a 366,000
square foot center scheduled to open in
September of 2015. Simon owns 100% of
this project.
– Tampa Premium Outlets is a 441,000
square foot center scheduled to open in
October of 2015. Simon owns 100% of
this project.
c Simon’s share of the costs of all development
and redevelopment projects under
construction at quarter end was approximately
$2.1 billion
ACQUISITIONSc In January 2015, we completed the acquisition
of two properties – Jersey Gardens in
Elizabeth, New Jersey (renamed The
Mills at Jersey Gardens) and University
Park Village in Fort Worth, Texas. The
aggregate purchase price was $1.09 billion
which includes the assumption of existing
mortgage debt of $405 million.
JOINT VENTURE TRANSACTIONSc In February 2015, we entered into an
agreement with Hudson’s Bay Company to
form a joint venture. The joint venture will
build on the strength of HBC’s existing real
estate assets and identify new real estate
growth opportunities with a focus on credit
tenant, net-leased and multi-tenanted
retail buildings in the United States and
internationally.
c Subsequent to quarter end, we created
a joint venture with Sears Holdings
Corporation that includes 10 Sears stores
located at our malls. Sears Holdings will
lease back and continue to operate the
existing stores at the properties and the
joint venture will have the ability to create
additional value through re-developing the
contributed properties and re-leasing space
at each property to third-party tenants. In
addition to the joint venture, we separately
acquired a Sears store at the La Plaza Mall
in McAllen, Texas.
CAPITAL MARKETSc During the quarter, the Company extended
and expanded its $2.0 billion revolving
credit facility, increasing the revolver’s
capacity to $2.75 billion. This facility can be
further increased to $3.5 billion during its
term, which will initially mature on June 30,
2019 and can be extended for an additional
year to June 30, 2020 at our sole option.
The pricing on the facility was reduced to
LIBOR plus 80 basis points and the facility
fee was reduced to 10 basis points.
c The Company also increased the maximum
aggregate program size of its global
commercial paper note program from $500
million to $1 billion, or the non-U.S. dollar
equivalent thereof.
c We closed or locked rate on three new
loans totaling approximately $1.9 billion,
or the non-U.S. dollar equivalent thereof,
of which SPG’s share is $0.9 billion. The
weighted average interest rate on these
loans is 3.0% and term is 8.4 years.
c Subsequent to quarter end, the Company
announced that its Board of Directors
authorized a common stock repurchase
program. Under the program, the Company
may purchase up to $2 billion of its
common stock over the next 24 months
as market conditions warrant. The shares
may be purchased in the open market or in
privately negotiated transactions.
(1) Please refer to back cover for information on non-
GAAP financial measures
(2) Combined information for U.S. Malls, Premium
Outlets and The Mills
(3) As compared to the first quarter of 2014, as reported;
combined information for U.S. Malls and Premium
Outlets
GLOBAL LEADER IN THE RETAILREAL ESTATE INDUSTRY c S&P 100 company with total market
capitalization of $99 billion and an equity
market capitalization of $71 billion(1)
c Owns or has an interest in 230 retail real
estate properties including Malls, Premium
Outlets® and The Mills® comprising 190
million square feet in North America,
Europe and Asia(1)
c Tenants in U.S. portfolio generate annual
retail sales of more than $60 billion
c 18.3%(1) ownership interest in Klépierre, a
public real estate company with shopping
centers in 16 European countries
INVESTMENT MERITSc Positive operating fundamentals; FFO per
share compound annual growth of 15% for
2010 to 2014
c Organic growth drivers: retailer demand
for quality locations and ability to re-lease
space at higher market rents upon
expiration
c Opportunities to invest for accretive
returns: redevelopments in existing portfolio
and new ground-up Premium Outlets and
mixed-use projects
c $2.1 billion of projects under construction
c Dividend growth: ~100% of taxable income
distributed to shareholders as dividends;
4-year dividend per share compound annual
growth of 19%
c Low cost of capital: highest investment-
grade credit ratings in industry
c Industry-leading management team:
experienced at operating through all
economic cycles
CORPORATE LEADERSHIPc Named Fortune’s Most Admired Real Estate
Company in 2015 (sixth time)
c Global recognition of management:
– Best-performing global CEOs by Harvard
Business Review, 2013 and 2014
– World’s Best 30 CEOs by Barron’s, 2013
– #1 CEO in real estate industry by
Institutional Investor, five consecutive
years
c Recognized three times by Institutional
Investor as the Best Investor Relations
program among REITs
SUSTAINABILITYc Received the NAREIT “Leader in the Light”
Award 8 times (2005 – 2012) for industry-
leading energy practices
c Named to 2014 CDP Global 500 Climate
Disclosure Leadership Index for leadership
and transparency on sustainable practices
c Recognized as the leading retail real estate
company in North America for sustainability
practices by The Global Real Estate
Sustainability Benchmark (GRESB); ranked
#1 among fifteen U.S. retail real estate
peers in GRESB’s 2014 Report
c Published first sustainability report in
December 2014, available at
www.simon.com/sustainability
(1) As of March 31, 2015
Left: Fashion
Valley, San Diego,
California
Top Right: St. Johns
Town Center,
Jacksonville,
Florida
Bottom Right: Lenox Square,
Atlanta, Georgia
HIGH-QUALITY PORTFOLIO OF RETAIL PROPERTIES IN MAJOR MARKETS:Aventura Mall — Miami
Burlington Mall — Boston
Copley Place — Boston
Dadeland Mall — Miami
Desert Hills Premium Outlets — Cabazon (Palm Springs), CA
Fashion Centre at Pentagon City — Washington, D.C.
Fashion Valley — San Diego
The Florida Mall — Orlando
The Forum Shops at Caesars — Las Vegas
The Galleria — Houston
Gotemba Premium Outlets — Gotemba (Tokyo), Japan
King of Prussia— Philadelphia
Las Vegas Premium Outlets(2) — Las Vegas
Lenox Square and Phipps Plaza — Atlanta
Orlando Premium Outlets(2) — Orlando
Roosevelt Field — New York
Sawgrass Mills — Ft. Lauderdale
SouthPark — Charlotte
Stanford Shopping Center — Palo Alto
Town Center at Boca Raton — Boca Raton
Walt Whitman Shops — New York
The Westchester — New York
Woodbury Common Premium Outlets — New York
Woodfield Mall — Chicago
As of As reported As of
3/31/15 (1) 3/31/14 12/31/14 (1)
U.S. OPERATING STATISTICS(2) Ending Occupancy 95.8% 95.5% 97.1%
Base Minimum Rent per square foot $ 47.59 $ 42.77 $ 47.01
Total Sales per square foot (for trailing twelve months) $ 621 $ 576 $ 619
Occupancy Cost (percentage of sales) 11.7% 11.6% 11.7%
NUMBER OF PROPERTIES Malls 110 156 109
Premium Outlet Centers 68 66 68
The Mills 14 13 13
Community Centers 3 61 3
International 21 20 21
Other Properties 14 11 14
Total Number of Properties 230 327 228
TOTAL SQUARE FOOTAGE (in thousands) 190,246 242,388 188,578
(1) Reflects the spin-off of Washington Prime Group Inc.
(2) Combined information for U.S. Malls and Premium Outlets. For statistical definitions, see our quarterly Form 8-K Supplemental Information available on our website at investors.simon.com.
SELECTED FINANCIAL DATA
STATISTICS
As of or for the three As of or for
months ended March 31, the year ended
(In thousands, except per share data and as otherwise noted) 2015 2014 12/31/14
OPERATING DATA:Pro-rata share of total revenue(1) $ 1,557,992 2 $ 1,523,812 $ 6,288,510
Consolidated net income $ 425,508 $ 401,103 $ 1,651,526
Net income attributable to common stockholders $ 362,174 $ 341,648 $ 1,405,251
PER COMMON SHARE DATA: FFO (2) (diluted) $ 2.28 $ 2.38 $ 8.90
Total assets $ 30,275,527 $ 32,755,599 $ 29,532,330
Mortgages and other indebtedness $ 21,694,055 $ 23,186,610 (4) $ 20,852,993
OTHER DATA: Shares of common stock 311,269 310,659 310,788
Limited partnership units 52,765 52,822 52,847
Total equity capitalization (in millions) $ 71,304 $ 59,688 $ 66,303
Total market capitalization (5) (in millions) $ 99,446 $ 88,882 $ 93,436
(1) Includes our pro-rata share of all consolidated and joint venture entities as presented in our quarterly Form 8-K Supplemental Information; does not include Klépierre.
(2) Please refer to the back cover for a reconciliation of diluted net income per share to diluted FFO per share.
(3) Reflects value after WPG spin-off.
(4) Does not reflect the spin-off of Washington Prime Group, Inc.
(5) Includes our share of consolidated and joint venture debt.
Three months ended Three months ended For the year ended March 31, March 31, December 31,
2015 2014 2014
Diluted net income per share $ 1.16 $ 1.10 $ 4.52
Adjustments to arrive at FFO:
Depreciation and amortization from consolidated properties and our share of
depreciation and amortization from unconsolidated entities, including Klépierre,
net of noncontrolling interests portion of depreciation and amortization 1.12 1.29 4.82
Gain upon acquisition of controlling interests and sale or disposal
of assets and interests in unconsolidated entities, net — (0.01 ) (0.44 )
Diluted FFO per share $ 2.28 $ 2.38 $ 8.90
For reconciliations of other non-GAAP financial measures, see our quarterly Form 8-K Supplemental Information available at investors.simon.com.
COMPANY SECURITIESOur common stock and preferred stock are traded on the New York
Stock Exchange under the following symbols:
Common Stock SPG
8.375% Series J Cumulative
Redeemable Preferred SPGPrJ
INVESTOR SERVICES PROGRAMWe offer an Investor Services Program for investors wishing to
purchase or sell our common stock. To enroll in this program, please
contact our transfer agent, Computershare at 800-454-9768 or
www.computershare.com/investor.
WEBSITEInformation such as financial results, corporate announcements,
dividend news and corporate governance is available at
investors.simon.com.
SPG VS.YEAR SPG S&P 500 S&P 500
2005 23.3% 4.9% 18.4%
2006 37.0% 15.8% 21.2%
2007 -11.3% 5.5% -16.8%
2008 -35.9% -37.0% 1.1%
2009 58.0% 26.5% 31.5%
2010 28.4% 15.1% 13.3%
2011 33.6% 2.1% 31.5%
2012 26.0% 16.0% 10.0%
2013 -0.9% 32.4% -33.3%
2014 31.2% 13.7% 17.5%
Compound Annual Return 16.9% 6.9% 7.9%
Cumulative Total Return 326% 109% 217%
2015 (As of March 31st) 8.2% 0.9% 7.3%
Left: Sawgrass Mills,
Sunrise (Miami), Florida
Top Right: Woodbury
Common Premium Outlets,
Central Valley (New York),
New York
Bottom Right: The Forum
Shops at Caesars,
Las Vegas, Nevada
NON-GAAP FINANCIAL MEASURESWe consider FFO a key measure of operating performance that is not defined by generally accepted accounting principles in the U.S. We
determine FFO per share based upon the definition set forth by NAREIT. We use FFO internally to evaluate the operating performance of
our portfolio and believe FFO provides investors with additional information concerning our operating performance and a basis to compare
our performance with other real estate investment trusts (REITs).
TOTAL STOCKHOLDER RETURN
RECONCILIATION OF DILUTED NET INCOME PER SHARE TO DILUTED FFO PER SHARE
