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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 June 30, 2020<\/span>.<\/p>\n “We continue to navigate through the challenging times presented by the pandemic with a commitment to the safety of our employees, shoppers, retailers and the communities we serve,” said David Simon<\/span>, Chairman, Chief Executive Officer and President. “Despite losing nearly 10,500 shopping days in our U.S. portfolio in the second quarter, we produced solid profitability and positive cash flow from operations. We have generally been encouraged by the shopper response, particularly in certain locations, after re-opening. These trends reinforce that our portfolio is an attractive destination for consumers. We remain committed to supporting our thousands of local and regional small businesses and restaurant entrepreneurs by granting rent abatements for the period they were closed. Our Company is well-positioned through a combination of deep brand relationships, the best portfolio with a strong mix of geographic locations and product types and a strong balance sheet, to continue our leadership position in the retail real estate industry.”<\/p>\n Results for the Quarter<\/strong><\/p>\n Results for the Six Months<\/strong><\/p>\n U.S. Malls and Premium Outlets Operating Statistics<\/strong><\/p>\n COVID-19 Business Update As of August 7<\/span>, 91% of the tenants across the Company’s U.S. retail properties were open and operating. More than half of the remaining unopened tenants are closed because of restrictive governmental orders limiting or prohibiting their operations. <\/p>\n The Company has collected from its U.S. retail portfolio, including some level of rent deferrals, approximately 51% of its contractual rent billed for April and May combined, approximately 69% for June and approximately 73% for July with only de minimis deferrals. These percentages have not been adjusted for any rent abatements granted. <\/p>\n Development Activity During the quarter, the 178,000 square-foot phase IV expansion of Gotemba Premium Outlets (Gotemba City, (Tokyo<\/span>) Japan<\/span>) opened adding enhanced amenities, elevated food offerings and more than 80 new, exciting brands, including many opening their first outlet store in Japan. Simon owns 40% of this center. <\/p>\n Construction continues on certain redevelopment and new development projects in the U.S. and internationally that are nearing completion. Simon’s share of the remaining required cash funding for these projects, that are currently scheduled to be completed in 2020 or 2021, is approximately $140 million<\/span>. <\/p>\n Capital Markets and Balance Sheet Liquidity Subsequent to the end of the quarter, the Company completed a three tranche senior notes offering totaling $2.0 billion<\/span>. Two tranches totaling $1.5 billion<\/span> were new issues of senior notes with a weighted average term of 20 years and a weighted average coupon rate of 3.23%. The third tranche of $500 million<\/span> was issued as additional notes under an indenture pursuant to which Simon Property Group, L.P. previously issued 3.50% notes due September 2025. <\/p>\n In July, the Company used a combination of proceeds from the offering and cash on hand to repay $2.5 billion<\/span> outstanding under its Credit Facilities. <\/p>\n Dividends Simon’s Board of Directors declared the quarterly dividend on its 8 3\/8% Series J Cumulative Redeemable Preferred Stock of $1.046875<\/span> per share, payable on September 30, 2020<\/span> to shareholders of record on September 16<\/span>, 2020. <\/p>\n Conference Call Supplemental Materials and Website 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.<\/p>\n Non-GAAP Financial Measures Tags:<\/b> investors.simon.com<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"\n
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<\/strong>On March 18, 2020<\/span>, after extensive discussions with federal, state and local officials and in recognition of the need to address the spread of COVID-19, the Company closed all of its retail properties in the United States. Our properties reopened, when permitted to do so under applicable governmental orders, beginning May 1. All of the Company’s retail properties were reopened as of July 10<\/span>. Seven retail properties in California<\/span> were subsequently closed on July 15<\/span>, and remain closed, due to a new restrictive governmental order. The Company’s retail properties were closed, in aggregate, for approximately 10,500 shopping days during the second quarter. <\/p>\n
<\/strong>On June 19, 2020<\/span>, Siam Premium Outlets Bangkok (Bangkok, Thailand<\/span>) opened with 264,000 square feet of high-quality, name brand stores. Siam Premium Outlets Bangkok is the first Premium Outlet® Center in Thailand<\/span>. Simon owns a 50% interest in this center. <\/p>\n
<\/strong>As of June 30, 2020<\/span>, Simon had approximately $8.5 billion<\/span> of liquidity consisting of $3.6 billion<\/span> of cash on hand, including its share of joint venture cash, and $4.9 billion<\/span> of available capacity under its revolving credit facilities and term loan, net of $702 million<\/span> outstanding under its U.S. commercial paper program.<\/p>\n
<\/strong>The Company paid its second quarter 2020 common stock dividend of $1.30<\/span> per share, in cash, on July 24<\/span>, 2020. Simon’s Board of Directors will declare a common stock dividend for the third quarter on or before September 30<\/span>, 2020. The Company expects to pay at least $6.00<\/span> per share in common stock dividends for 2020, in cash, subject to the Board of Directors’ approval.<\/p>\n
<\/strong>Simon will hold a conference call to discuss the quarterly financial results today at 5:00 p.m. Eastern Time<\/span>, Monday, August 10<\/span>, 2020. 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 August 17<\/span>, 2020. To access the audio replay, dial 1-855-859-2056 (international 404-537-3406) passcode 2558073. <\/p>\n
<\/strong>Supplemental information on our second quarter 2020 performance is available at investors.simon.com. This information has also been furnished to the SEC in a current report on Form 8-K.<\/p>\n
<\/strong>This press release includes FFO, FFO per share, comparable property Net Operating Income growth and portfolio Net Operating Income growth which are financial performance measures not defined by generally accepted accounting principles in the United States<\/span> (“GAAP”). Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in this press release and in Simon’s supplemental information for the quarter. FFO and comparable property Net Operating Income 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.<\/p>\nSee Campaign: <\/strong>http:\/\/investors.simon.com<\/a>
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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 June 30, 2020. “We continue to navigate through the challenging times presented by the pandemic with a commitment to the safety of our employees, shoppers, retailers and the communities we serve,” … Continue reading Simon Property Group Reports Second Quarter 2020 Results<\/span><\/a> Continue Reading