Simon Property Group (SPG) Q2 2024 earnings summary

Executive summary

• Achieved record and strong financial and operational performance in Q2 2024, driven by increased leasing, occupancy, shopper traffic, retail sales, and a $414.8M pre-tax gain from the sale of Authentic Brands Group.

• Diluted EPS and earnings per unit rose to $3.76 for the first six months of 2024, up $0.89 year-over-year.

• The company owns or holds interests in 195 U.S. properties and 35 international outlets, with ongoing redevelopment and expansion projects globally.

• Focused on disciplined investment, long-term growth, and enhancing property value for communities.

Financial highlights

• Q2 2024 FFO was $1.09B ($2.90/share), up from $1.077B ($2.88/share) in Q2 2023; Real Estate FFO rose 4.3% to $2.93/share.

• Six-month 2024 FFO was $2.42B ($6.46/share), up from $2.10B ($5.62/share) in 2023; Real Estate FFO increased to $5.84/share.

• Domestic NOI increased 5.2% in Q2 and 4.5% for the six months; portfolio NOI increased 4.8% in Q2 and 4.4% for the six months, year-over-year.

• Net income attributable to common stockholders was $493.5M ($1.51/share) in Q2 and $1.23B ($3.76/share) for the first half of 2024.

• Retailer sales per sq ft for malls and premium outlets was $741 in Q2.

Outlook and guidance

• Raised full-year 2024 guidance to $12.80–$12.90/share, up from $12.51 last year; net income guidance raised to $7.37–$7.47 per diluted share.

• Guidance increase reflects overcoming $0.15/share headwinds from retailer restructurings and lower lease settlement/land sales income.

• Management expects to generate positive cash flow from operations in 2024 and has sufficient liquidity to meet capital needs and debt maturities.

• Expect year-end occupancy north of 96%.