NYSE$SPG

Simon Property Group Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Simon's financial and operational performance was strong, with increased quarterly dividend and full-year guidance.

Simon Property Group reported positive second quarter results, increasing the quarterly dividend and raising the full-year 2023 guidance. Net income attributable to common stockholders was $486.3 million, or $1.49 per diluted share. FFO was $1.077 billion, or $2.88 per diluted share. Occupancy increased to 94.7% and base minimum rent per square foot increased to $56.27.

  • Net income attributable to common stockholders was $486.3 million, or $1.49 per diluted share.
  • Funds From Operations (“FFO”) was $1.077 billion, or $2.88 per diluted share.
  • Domestic property Net Operating Income (“NOI”) increased 3.3% and portfolio NOI increased 3.7%.
  • Occupancy was 94.7% at June 30, 2023, and base minimum rent per square foot was $56.27.

Headline financials

Total Revenue

$1.37B

Previous: $1.28B+7.0%
EPS (adj)

$2.88

Previous: $2.91-1.0%
Ending occupancy

94.7%

Previous: 93.9%+0.9%
Net Income

$558M

Previous: $569M-2.1%
Operating Income

$658M

Previous: $627M+5.0%
Gross Profit

$1.23B

Previous: $1.15B+7.1%
Cash & Equivalents

$837M

Previous: $541M+54.7%
Total Assets

$32.8B

Previous: $33.1B-0.8%

Revenue & EPS history

Simon · Revenue · Quarterly

$1.37B

Q2 2023+7%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Simon · $1.37B total across 3 segments · Q2 2023

  • Lease income
    $1.25B
  • Other income
    $81.1M
  • Management & other
    $33.5M

Forward guidance

The Company currently estimates net income to be within a range of $6.39 to $6.49 per diluted share and FFO to be within a range of $11.85 to $11.95 per diluted share for the year ending December 31, 2023.

Tailwinds

  • Construction continues on redevelopment and expansion projects at properties in North America, Europe and Asia.
  • In April, we opened a new shopping destination in Paris-Giverny, France.
  • The Company was active in the credit markets through the first six months of the year.
  • During the first six months, the Company completed 9 non-recourse mortgage loans totaling approximately $820 million (U.S. dollar equivalent), of which Simon’s share was $404 million.
  • The weighted average interest rate on these loans was 6.01%.

Headwinds

  • changes in economic and market conditions that may adversely affect the general retail environment, including but not limited to those caused by inflation, recessionary pressures, wars, such as in Ukraine, and supply chain disruptions
  • the inability to renew leases and relet vacant space at existing properties on favorable terms
  • the potential loss of anchor stores or major tenants
  • the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise
  • an increase in vacant space at our properties

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.4%

Avg return

Earnings day

+2.7%

Avg return

5 days after

+3.3%

Avg return

30 days after

60%

44 / 73 earnings

Positive

+27.4%

Q3 2020

Best reaction

-7.1%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%+1.1%+7.5%
Q4 2025-1.6%+4.4%+5.1%
Q3 2025+3.2%+3.9%+3.8%
Q2 2025-0.9%+3.8%+9.6%
Q1 2025-5.9%-3.7%-7.4%
Q4 2024+3.3%+4.2%-1.3%
Q3 2024+1.8%+2.7%+8.6%
Q2 2024+3.0%+5.0%+9.3%
Q1 2024+3.5%+3.4%+7.4%
Q4 2023+4.0%+6.5%+10.4%
Q3 2023+5.1%+12.8%+17.4%
Q2 2023-5.6%-4.6%-8.4%
Q1 2023-5.2%-3.5%-8.9%
Q4 2022-3.0%-4.2%-5.9%
Q3 2022+2.4%+6.0%+9.2%
Q2 2022-2.9%-2.0%-6.1%
Q1 2022-1.9%-3.8%-11.2%
Q4 2021-2.2%-2.3%-8.7%
Q3 2021+8.5%+16.3%+0.8%
Q2 2021+2.4%+6.9%+7.3%
Q1 2021-1.8%-2.2%+8.5%
Q4 2020+6.0%+12.9%+18.1%
Q3 2020+27.4%+20.8%+46.8%
Q2 2020+8.0%+9.6%+10.7%
Q1 2020-6.0%-11.5%+43.1%
Q4 2019+5.8%+6.2%-9.7%
Q3 2019-1.4%+3.4%-1.1%
Q2 2019-1.7%-3.4%-7.0%
Q1 2019+1.1%+2.1%-7.2%
Q4 2018-0.1%+0.9%-3.6%
Q3 2018+3.3%+7.9%+4.8%
Q2 2018+4.5%+5.7%+7.7%
Q1 2018+4.1%+6.0%+6.2%
Q4 2017-1.8%-4.6%-4.4%
Q3 2017-3.7%-4.1%-3.5%
Q2 2017+1.8%+3.8%-1.0%
Q1 2017+0.1%+2.3%-4.7%
Q4 2016+2.1%+4.3%+1.9%
Q3 2016-7.1%-5.7%-8.1%
Q2 2016-0.2%+1.4%-4.8%
Q1 2016+0.4%
Q4 2015+0.6%
Q3 2015+1.2%
Q2 2015+2.4%
Q1 2015+0.4%
Q4 2014-2.6%
Q3 2014+0.2%
Q2 2014-0.0%
Q1 2014+0.1%
Q4 2013-1.2%
Q3 2013-1.8%
Q2 2013-1.7%
Q1 2013-0.0%
Q4 2012-0.1%
Q3 2012-0.6%
Q2 2012+0.3%
Q1 2012+2.2%
Q2 2011-1.0%
Q4 2011-1.0%
Q3 2011+0.9%
Q1 2011+0.4%
Q4 2010+4.2%
Q2 2010+4.2%
Q3 2010+2.3%
Q1 2009+5.8%
Q1 2010-0.8%
Q4 2009+1.0%
Q3 2008+1.0%
Q3 2009+1.0%
Q2 2009+7.9%
Q4 2007+7.9%
Q4 2008+7.9%
Q2 2008+7.9%

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