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TABLE OF CONTENTS

Table of Contents

SIMON PROPERTY GROUP

 



EARNINGS RELEASE & SUPPLEMENTAL INFORMATION
UNAUDITED SECOND QUARTER 2018

GRAPHIC


Table of Contents

TABLE OF CONTENTS

EARNINGS RELEASE AND SUPPLEMENTAL INFORMATION
FOR THE QUARTER ENDED JUNE 30, 2018


 
PAGE  

 

       

Earnings Release(1)

    2-13  

Overview

       

The Company

    14  

Stock Information, Credit Ratings and Senior Unsecured Debt Covenants

    15  

Financial Data

       

Selected Financial and Equity Information

    16  

Net Operating Income (NOI) Composition

    17  

Net Operating Income Overview

    18  

Reconciliations of Non-GAAP Financial Measures

    19  

Consolidated Net Income to NOI

    19  

FFO of the Operating Partnership to Funds Available for Distribution (Our Share)

    20  

Other Income, Other Expense and Capitalized Interest

    21  

Operational Data

       

U.S. Malls and Premium Outlets Operating Information

    22  

The Mills and International Operating Information

    23  

U.S. Malls and Premium Outlets Lease Expirations

    24  

U.S. Malls and Premium Outlets Top Tenants

    25  

Development Activity

       

Capital Expenditures

    26  

Development Activity Summary

    27-28  

Development Activity Report

    29-30  

U.S. Tenant Openings of Note

    31-32  

Densification Projects

    33  

Balance Sheet Information

       

Common and Preferred Stock Information

    34  

Changes in Common Share and Limited Partnership Unit Ownership

    34  

Preferred Stock/Units Outstanding

    34  

Credit Profile

    35  

Summary of Indebtedness

    36  

Total Debt Amortization and Maturities by Year (Our Share)

    37  

Property and Debt Information

   
38-47
 

Other

       

Non-GAAP Pro-Rata Financial Information

    48  
(1)
Includes reconciliation of consolidated net income to funds from operations.
 
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EARNINGS RELEASE

LOGO

Contacts:   FOR IMMEDIATE RELEASE
Tom Ward   317-685-7330 Investors    
Les Morris   317-263-7711 Media    


SIMON PROPERTY GROUP REPORTS RECORD SECOND QUARTER 2018 RESULTS AND RAISES QUARTERLY DIVIDEND AND FULL YEAR 2018 GUIDANCE

INDIANAPOLIS, July 30, 2018 - Simon, a global leader in premier shopping, dining and entertainment destinations, today reported results for the quarter ended June 30, 2018.

RESULTS FOR THE QUARTER

Net income attributable to common stockholders was $547.0 million, or $1.77 per diluted share, as compared to $382.0 million, or $1.23 per diluted share, in the prior year period. Results for the second quarter 2017 included a charge of $0.36 per diluted share related to the early redemption of certain senior notes of Simon Property Group, L.P.

Funds from Operations ("FFO") was $1.061 billion, or $2.98 per diluted share, as compared to $884.7 million, or $2.47 per diluted share, in the prior year period, a 20.6% increase. FFO in the second quarter 2017 includes the aforementioned charge related to the redemption of certain of our senior notes.

RESULTS FOR THE SIX MONTHS

Net income attributable to common stockholders was $1.168 billion, or $3.77 per diluted share, as compared to $859.7 million, or $2.75 per diluted share, in the prior year period. Results for the six months ended 2018 include net gains of $144.9 million, or $0.41 per diluted share, primarily related to disposition activity. Results for the six months ended 2017 include the $0.36 per diluted share charge on the extinguishment of debt.

FFO was $2.087 billion, or $5.85 per diluted share, as compared to $1.870 billion, or $5.20 per diluted share, in the prior year period, a 12.5% increase. FFO for the six months ended 2017 includes the aforementioned charge on the extinguishment of debt.

"This was an excellent quarter for our Company, with strong financial and operational performance and the successful opening of our fourth outlet center in Canada," said David Simon, Chairman and Chief Executive Officer. "Based upon our results to date and expectations for the remainder of 2018, today, we raised our quarterly dividend and are again increasing our full-year 2018 guidance."

 
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EARNINGS RELEASE

U.S. MALLS AND PREMIUM OUTLETS OPERATING STATISTICS

Reported retailer sales per square foot for the trailing 12-months ended June 30, 2018 was $646, an increase of 4.6%.

Occupancy was 94.7% at June 30, 2018.

Base minimum rent per square foot was $53.84 at June 30, 2018, an increase of 3.3% compared to the prior year period.

Leasing spread per square foot for the trailing 12-months ended June 30, 2018 was $7.32, an increase of 10.7%.

PORTFOLIO NET OPERATING INCOME ("NOI") AND COMPARABLE PROPERTY NOI

Total portfolio NOI growth for the six months ended June 30, 2018 was 4.5%. Total portfolio NOI includes comparable property NOI, NOI from new development, redevelopment, expansion and acquisitions, NOI from international properties and our share of NOI from investments. Comparable property NOI growth for the six months ended June 30, 2018 was 2.3%.

DIVIDENDS

Today, Simon's Board of Directors declared a quarterly common stock dividend of $2.00 per share. This is an 11.1% increase year-over-year. The dividend will be payable on August 31, 2018 to shareholders of record on August 17, 2018.

Simon's Board of Directors also declared the quarterly dividend on its 83/8% Series J Cumulative Redeemable Preferred Stock (NYSE: SPGPrJ) of $1.046875 per share, payable on September 28, 2018 to shareholders of record on September 14, 2018.

 
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EARNINGS RELEASE

DEVELOPMENT ACTIVITY

On May 2, 2018, Premium Outlet Collection Edmonton International Airport (Edmonton, Alberta, Canada) opened with 424,000 square feet of high-quality, name brand stores. Simon owns a 50% interest in this center.

Construction continues on four new development projects including:

Denver Premium Outlets (Thornton, Colorado); scheduled to open in September 2018. Simon owns 100% of this project.

Queretaro Premium Outlets (Queretaro, Mexico); scheduled to open in December 2018. Simon owns a 50% interest in this project.

Malaga Designer Outlet (Malaga, Spain); scheduled to open in spring 2019. Simon owns a 46% interest in this project.

Cannock Designer Outlet (Cannock, United Kingdom); scheduled to open in spring 2020. Simon owns a 20% interest in this project.

Construction also continues on significant redevelopment and expansion projects at other properties including Town Center at Boca Raton, Toronto Premium Outlets and Southdale Center (Edina (Minneapolis), MN).

At quarter-end, redevelopment and expansion projects, including the addition of new anchors, were underway at properties in the U.S., Canada, Europe and Asia.

During the second quarter, construction started on significant expansion projects at Vancouver Designer Outlet (Vancouver, British Columbia, Canada) and Ashford Designer Outlet (Kent, United Kingdom).

 
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EARNINGS RELEASE

FINANCING ACTIVITY

During the first six months of 2018, the Company closed on eight mortgage loans totaling approximately $2.4 billion, (U.S. dollar equivalent), of which Simon's share is approximately $850 million. The weighted average interest rate and weighted average term on these loans is 3.98% and 8.9 years, respectively.

As of June 30, 2018, Simon had more than $7.0 billion of liquidity consisting of cash on hand, including its share of joint venture cash, and available capacity under its revolving credit facilities.

COMMON STOCK REPURCHASE PROGRAM

During the quarter ended June 30, 2018, the Company repurchased 514,659 shares of its common stock.

2018 GUIDANCE

The Company currently estimates net income to be within a range of $7.46 to $7.54 per diluted share for the year ending December 31, 2018 and that FFO will be within a range of $12.05 to $12.13 per diluted share.

The following table provides the reconciliation for the expected range of estimated net income attributable to common stockholders per diluted share to estimated FFO per diluted share:

For the year ending December 31, 2018

 
  LOW END   HIGH END  

Estimated net income attributable to common stockholders per diluted share

  $ 7.46   $ 7.54  

Depreciation and amortization including Simon's share of unconsolidated entities

    5.00     5.00  

Gain upon acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net

    (0.41)     (0.41)  

Estimated FFO per diluted share

  $ 12.05   $ 12.13  
 
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EARNINGS RELEASE

CONFERENCE CALL

Simon will hold a conference call to discuss the quarterly financial results today at 8:30 a.m. Eastern Time, Monday, July 30, 2018. 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 6, 2018. To access the audio replay, dial 1-855-859-2056 (international 404-537-3406) passcode 5187818.

SUPPLEMENTAL MATERIALS AND WEBSITE

Supplemental information on our second quarter 2018 performance is available at investors.simon.com. This information has also been furnished to the SEC in a current report on Form 8-K.

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.

NON-GAAP FINANCIAL MEASURES

This press release includes FFO, FFO per share, portfolio net operating income growth and comparable property net operating income growth, which are financial performance measures not defined by generally accepted accounting principles in the United States ("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.

 
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EARNINGS RELEASE

FORWARD-LOOKING STATEMENTS

Certain statements made in this press release may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained, and it is possible that the Company's actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to: changes in economic and market conditions that may adversely affect the general retail environment; the potential loss of anchor stores or major tenants; the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; decreases in market rental rates; the intensely competitive market environment in the retail industry; the inability to lease newly developed properties and renew leases and relet space at existing properties on favorable terms; risks related to international activities, including, without limitation, the impact of the United Kingdom's vote to leave the European Union; changes to applicable laws or regulations or the interpretation thereof; risks associated with the acquisition, development, redevelopment, expansion, leasing and management of properties; general risks related to real estate investments, including the illiquidity of real estate investments; the impact of our substantial indebtedness on our future operations; any disruption in the financial markets that may adversely affect our ability to access capital for growth and satisfy our ongoing debt service requirements; any change in our credit rating; changes in market rates of interest and foreign exchange rates for foreign currencies; changes in the value of our investments in foreign entities; our ability to hedge interest rate and currency risk; our continued ability to maintain our status as a REIT; changes in tax laws or regulations that result in adverse tax consequences; risks relating to our joint venture properties; environmental liabilities; changes in insurance costs, the availability of comprehensive insurance coverage; security breaches that could compromise our information technology or infrastructure; natural disasters; the potential for terrorist activities; and the loss of key management personnel. The Company discusses these and other risks and uncertainties under the heading "Risk Factors" in its annual and quarterly periodic reports filed with the SEC. The Company may update that discussion in its periodic reports, but except as required by law, the Company undertakes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.

ABOUT SIMON

Simon is a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE:SPG). Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales. For more information, visit simon.com.

 
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EARNINGS RELEASE

Simon Property Group, Inc.
Unaudited Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)

 
  FOR THE
THREE MONTHS
ENDED JUNE 30,
  FOR THE
SIX MONTHS
ENDED JUNE 30,
 
 
 
2018
 
2017
   
2018
   
2017
 

REVENUE:

                         

Minimum rent

  $ 857,106   $ 851,552   $ 1,717,277   $ 1,698,350  

Overage rent

    31,942     29,764     64,932     57,967  

Tenant reimbursements

    372,949     380,527     753,312     759,442  

Management fees and other revenues

    28,541     31,367     56,722     61,914  

Other income

    97,820     68,338     195,929     129,638  

Total revenue

    1,388,358     1,361,548     2,788,172     2,707,311  

EXPENSES:

                         

Property operating

    102,951     107,371     216,400     211,419  

Depreciation and amortization

    320,198     322,396     637,134     633,228  

Real estate taxes

    111,449     113,415     225,635     220,073  

Repairs and maintenance

    22,191     21,700     49,875     47,301  

Advertising and promotion

    36,491     36,496     71,291     72,444  

Provision for credit losses

    3,299     2,659     8,931     7,870  

Home and regional office costs

    32,316     36,476     73,380     79,455  

General and administrative

    10,913     13,074     23,542     27,075  

Other

    10,875     21,812     42,377     45,627  

Total operating expenses

    650,683     675,399     1,348,565     1,344,492  

OPERATING INCOME

    737,675     686,149     1,439,607     1,362,819  

Interest expense

    (206,624)     (207,174)     (412,115)     (405,373)  

Loss on extinguishment of debt

        (128,618)         (128,618)  

Income and other taxes

    (10,137)     (5,990)     (16,357)     (2,470)  

Income from unconsolidated entities

    100,828     92,017     190,854     161,101  

Gain upon acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net

    9,672     4,989     144,949     4,989  

CONSOLIDATED NET INCOME

    631,414     441,373     1,346,938     992,448  

Net income attributable to noncontrolling interests

    83,576     58,549     177,611     131,053  

Preferred dividends

    834     834     1,669     1,669  

NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

  $ 547,004   $ 381,990   $ 1,167,658   $ 859,726  

BASIC AND DILUTED EARNINGS PER COMMON SHARE:

                         

Net income attributable to common stockholders

  $ 1.77   $ 1.23   $ 3.77   $ 2.75  
 
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EARNINGS RELEASE

Simon Property Group, Inc.
Unaudited Consolidated Balance Sheets
(Dollars in thousands, except share amounts)

 
  JUNE 30,
2018
  DECEMBER 31,
2017
 

ASSETS:

             

Investment properties, at cost

  $ 36,429,603   $ 36,393,464  

Less — accumulated depreciation

    12,354,966     11,935,949  

    24,074,637     24,457,515  

Cash and cash equivalents

    714,247     1,482,309  

Tenant receivables and accrued revenue, net

    681,551     742,672  

Investment in unconsolidated entities, at equity

    2,302,833     2,266,483  

Investment in Klépierre, at equity

    1,772,155     1,934,676  

Deferred costs and other assets

    1,297,717     1,373,983  

Total assets

  $ 30,843,140   $ 32,257,638  

LIABILITIES:

             

Mortgages and unsecured indebtedness

  $ 23,505,002   $ 24,632,463  

Accounts payable, accrued expenses, intangibles, and deferred revenues

    1,230,775     1,269,190  

Cash distributions and losses in unconsolidated entities, at equity

    1,531,136     1,406,378  

Other liabilities

    499,598     520,363  

Total liabilities

    26,766,511     27,828,394  

Commitments and contingencies

             

Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests in properties

    198,001     190,480  

EQUITY:

   
 
   
 
 

Stockholders' Equity

             

Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):

             

Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847

   
42,912
   
43,077
 

             

Common stock, $0.0001 par value, 511,990,000 shares authorized, 320,324,839 and 320,322,774 issued and outstanding, respectively

    32     32  

             

Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding

         

             

Capital in excess of par value

    9,657,810     9,614,748  

Accumulated deficit

    (4,833,826)     (4,782,173)  

Accumulated other comprehensive loss

    (115,285)     (110,453)  

Common stock held in treasury, at cost, 11,115,156 and 9,163,920 shares, respectively

    (1,380,619)     (1,079,063)  

Total stockholders' equity

    3,371,024     3,686,168  

Noncontrolling interests

    507,604     552,596  

Total equity

    3,878,628     4,238,764  

Total liabilities and equity

  $ 30,843,140   $ 32,257,638  
 
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EARNINGS RELEASE

Simon Property Group, Inc.
Unaudited Joint Venture Combined Statements of Operations
(Dollars in thousands)

 
  FOR THE THREE MONTHS
ENDED JUNE 30,
  FOR THE SIX MONTHS
ENDED JUNE 30,
 
 
 
2018
 
2017
   
2018
   
2017
 

REVENUE:

                         

Minimum rent

  $ 483,976   $ 465,705   $ 959,931   $ 916,760  

Overage rent

    51,067     46,447     110,728     97,816  

Tenant reimbursements

    220,426     212,465     443,916     428,246  

Other income

    78,378     71,753     159,487     136,079  

Total revenue

    833,847     796,370     1,674,062     1,578,901  

OPERATING EXPENSES:

   
 
   
 
   
 
   
 
 

Property operating

    139,553     132,028     285,845     265,013  

Depreciation and amortization

    166,299     159,748     326,134     313,202  

Real estate taxes

    68,576     63,977     136,843     130,560  

Repairs and maintenance

    20,736     20,471     43,933     40,701  

Advertising and promotion

    20,884     21,836     45,108     44,034  

Provision for credit losses

    5,577     2,789     12,078     6,566  

Other

    49,885     45,030     99,617     88,384  

Total operating expenses

    471,510     445,879     949,558     888,460  

OPERATING INCOME

   
362,337
   
350,491
   
724,504
   
690,441
 

Interest expense

    (190,751)     (146,440)     (341,684)     (288,647)  

Gain on sale or disposal of, or recovery on, assets and interests in unconsolidated entities, net

    25,792         25,792      

NET INCOME

  $ 197,378   $ 204,051   $ 408,612   $ 401,794  

Third-Party Investors' Share of Net Income

  $ 96,240   $ 104,265   $ 202,424   $ 203,950  

Our Share of Net Income

    101,138     99,786     206,188     197,844  

Amortization of Excess Investment (A)

    (21,395)     (22,979)     (42,921)     (45,436)  

Our Share of Gain on Sale or Disposal of, or Recovery on, Assets and Interests in Unconsolidated Entities, net

    (9,672)         (9,672)      

Income from Unconsolidated Entities (B)

  $ 70,071   $ 76,807   $ 153,595   $ 152,408  

Note:
The above financial presentation does not include any information related to our investments in Klépierre S.A. ("Klépierre") and HBS Global Properties ("HBS"). For additional information, see footnote B.
 
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EARNINGS RELEASE

Simon Property Group, Inc.
Unaudited Joint Venture Combined Balance Sheets
(Dollars in thousands)

 
  JUNE 30,
2018
  DECEMBER 31,
2017
 

Assets:

             

Investment properties, at cost

  $ 18,580,295   $ 18,328,747  

Less — accumulated depreciation

    6,618,858     6,371,363  

    11,961,437     11,957,384  

Cash and cash equivalents

    970,605     956,084  

Tenant receivables and accrued revenue, net

    386,980     403,125  

Deferred costs and other assets

    389,710     355,585  

Total assets

  $ 13,708,732   $ 13,672,178  

Liabilities and Partners' Deficit:

   
 
   
 
 

Mortgages

  $ 15,252,252   $ 14,784,310  

Accounts payable, accrued expenses, intangibles, and deferred revenue

    859,475     1,033,674  

Other liabilities

    386,151     365,857  

Total liabilities

    16,497,878     16,183,841  

Preferred units

   
67,450
   
67,450
 

Partners' deficit

    (2,856,596)     (2,579,113)  

Total liabilities and partners' deficit

  $ 13,708,732   $ 13,672,178  

Our Share of:

             

Partners' deficit

  $ (1,240,838)   $ (1,144,620)  

Add: Excess Investment (A)

    1,693,800     1,733,063  

Our net Investment in unconsolidated entities, at equity

  $ 452,962   $ 588,443  

Note:
The above financial presentation does not include any information related to our investments in Klépierre and HBS Global Properties. For additional information, see footnote B.
 
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EARNINGS RELEASE

Simon Property Group, Inc.
Unaudited Reconciliation of Non-GAAP Financial Measures (C)
(Amounts in thousands, except per share amounts)

 
  RECONCILIATION OF CONSOLIDATED NET INCOME TO FFO
   
   
   
   
   
 
   
  FOR THE THREE MONTHS
ENDED JUNE 30,
  FOR THE SIX MONTHS
ENDED JUNE 30,
   
 
   
   
2018
   
2017
   
2018
 
2017
   

 

Consolidated Net Income (D)

  $ 631,414   $ 441,373   $ 1,346,938   $ 992,448    

 

Adjustments to Arrive at FFO:

                           

 

Depreciation and amortization from consolidated properties

    317,364     318,585     631,370     626,273    

 

Our share of depreciation and amortization from unconsolidated entities, including Klépierre and HBS

    137,279     135,476     272,204     266,694    

 

Gain upon acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net

    (9,672)     (4,989)     (144,949)     (4,989)    

 

Unrealized change in fair value of equity instruments

    (9,692)         (6,664)        

 

Net (income) loss attributable to noncontrolling interest holders in properties

    (279)     (74)     (186)     170    

 

Noncontrolling interests portion of depreciation and amortization

    (4,537)     (4,315)     (9,185)     (8,215)    

 

Preferred distributions and dividends

    (1,313)     (1,313)     (2,626)     (2,626)    

 

FFO of the Operating Partnership (E)

  $ 1,060,564   $ 884,743   $ 2,086,902   $ 1,869,755    

 

Diluted net income per share to diluted FFO per share reconciliation:

                           

 

Diluted net income per share

  $ 1.77   $ 1.23   $ 3.77   $ 2.75    

 

Depreciation and amortization from consolidated properties and our share of depreciation and amortization from unconsolidated entities, including Klépierre and HBS, net of noncontrolling interests portion of depreciation and amortization

    1.27     1.25     2.51     2.46    

 

Gain upon acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net

    (0.03)     (0.01)     (0.41)     (0.01)    

 

Unrealized change in fair value of equity instruments

    (0.03)         (0.02)        

 

Diluted FFO per share (F)

  $ 2.98   $ 2.47   $ 5.85   $ 5.20    

   

 

 

                           

 

 

Details for per share calculations:

                           

 

 

FFO of the Operating Partnership (E)

  $ 1,060,564   $ 884,743   $ 2,086,902   $ 1,869,755    

 

 

Diluted FFO allocable to unitholders

    (139,426)     (116,599)     (273,985)     (246,028)    
 

 

 

Diluted FFO allocable to common stockholders (G)

  $ 921,138   $ 768,144   $ 1,812,917   $ 1,623,727    
 
 
 

 

 

Basic and Diluted weighted average shares outstanding

    309,355     311,579     309,966     312,191    

 

 

Weighted average limited partnership units outstanding

    46,827     47,287     46,845     47,304    
 

 

 

Basic and Diluted weighted average shares and units outstanding

    356,182     358,866     356,811     359,495    
 
 
 

 

 

Basic and Diluted FFO per Share (F)

  $ 2.98   $ 2.47   $ 5.85   $ 5.20    

 

 

Percent Change

    20.6%           12.5%          
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 12

Table of Contents

EARNINGS RELEASE

Simon Property Group, Inc.
Footnotes to Unaudited Financial Information

Notes:

(A)
Excess investment represents the unamortized difference of our investment over equity in the underlying net assets of the related partnerships and joint ventures shown therein. The Company generally amortizes excess investment over the life of the related properties.

(B)
The Unaudited Joint Venture Combined Statements of Operations do not include any operations or our share of net income or excess investment amortization related to our investments in Klépierre and HBS Global Properties. Amounts included in Footnotes D below exclude our share of related activity for our investments in Klépierre and HBS Global Properties. For further information on Klépierre, reference should be made to financial information in Klépierre's public filings and additional discussion and analysis in our Form 10-Q.

(C)
This report contains measures of financial or operating performance that are not specifically defined by GAAP, including FFO and FFO per share. FFO is a performance measure that is standard in the REIT business. We believe FFO provides investors with additional information concerning our operating performance and a basis to compare our performance with those of other REITs. We also use these measures internally to monitor the operating performance of our portfolio. Our computation of these non-GAAP measures may not be the same as similar measures reported by other REITs.

    We determine FFO based upon the definition set forth by the National Association of Real Estate Investment Trusts ("NAREIT"). We determine FFO to be our share of consolidated net income computed in accordance with GAAP, excluding real estate related depreciation and amortization, excluding gains and losses from extraordinary items, excluding gains and losses from the sale, disposal or property insurance recoveries of, or any impairment related to, previously depreciated retail operating properties, plus the allocable portion of FFO of unconsolidated joint ventures based upon economic ownership interest, and all determined on a consistent basis in accordance with GAAP.

    We have adopted NAREIT's clarification of the definition of FFO that requires it to include the effects of nonrecurring items not classified as extraordinary, cumulative effect of accounting changes, or a gain or loss resulting from the sale, disposal or property insurance recoveries of, or any impairment relating to, previously depreciated retail operating properties. We include in FFO gains and losses realized from the sale of land, outlot buildings, equity instruments, and investment holdings of non-retail real estate. However, you should understand that FFO does not represent cash flow from operations as defined by GAAP, should not be considered as an alternative to net income determined in accordance with GAAP as a measure of operating performance, and is not an alternative to cash flows as a measure of liquidity.

(D)
Includes our share of:

-
Gains on land sales of $1.4 million and $5.0 million for the three months ended June 30, 2018 and 2017, respectively, and $2.7 million and $7.7 million for the six months ended June 30, 2018 and 2017, respectively.

-
Straight-line adjustments increased income by $6.4 million and $5.1 million for the three months ended June 30, 2018 and 2017, respectively, and $15.0 million and $15.3 million for the six months ended June 30, 2018 and 2017, respectively.

-
Amortization of fair market value of leases from acquisitions increased income by $1.0 million and $1.5 million for the three months ended June 30, 2018 and 2017, respectively, and $2.4 million and $3.2 million for the six months ended June 30, 2018 and 2017, respectively.

(E)
Includes a loss on the extinguishment of debt of $128.6 million for the three and six months ended June 30, 2017.

(F)
Includes Basic and Diluted FFO per share related to a loss on the extinguishment of debt of $0.36 for the three and six months ended June 30, 2017.

(G)
Includes Diluted FFO allocable to common stockholders related to a loss on the extinguishment of debt of $111.7 million for the three and six months ended June 30, 2017.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 13

Table of Contents

OVERVIEW

THE COMPANY

Simon Property Group, Inc. (NYSE:SPG) is a self-administered and self-managed real estate investment trust ("REIT"). Simon Property Group, L.P., or the Operating Partnership, is our majority-owned partnership subsidiary that owns all of our real estate properties and other assets. In this package, the terms Simon, we, our, or the Company refer to Simon Property Group, Inc., the Operating Partnership, and its subsidiaries. We own, develop and manage premier shopping, dining, entertainment and mixed-use destinations, which consist primarily of malls, Premium Outlets®, The Mills®, and International Properties. At June 30, 2018, we owned or had an interest in 234 properties comprising 191 million square feet in North America, Asia and Europe. Additionally, at June 30, 2018, we had a 21.1% ownership interest in Klépierre, a publicly traded, Paris-based real estate company, which owns shopping centers in 16 European countries.

This package was prepared to provide operational and balance sheet information as of June 30, 2018 for the Company and the Operating Partnership.

Certain statements made in this Supplemental Package may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained, and it is possible that our actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to: changes in economic and market conditions that may adversely affect the general retail environment; the potential loss of anchor stores or major tenants; the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; decreases in market rental rates; the intensely competitive market environment in the retail industry; the inability to lease newly developed properties and renew leases and relet space at existing properties on favorable terms; risks related to international activities, including, without limitation, the impact of the United Kingdom's vote to leave the European Union; changes to applicable laws or regulations or the interpretation thereof; risks associated with the acquisition, development, redevelopment, expansion, leasing and management of properties; general risks related to real estate investments, including the illiquidity of real estate investments; the impact of our substantial indebtedness on our future operations; any disruption in the financial markets that may adversely affect our ability to access capital for growth and satisfy our ongoing debt service requirements; any change in our credit rating; changes in market rates of interest and foreign exchange rates for foreign currencies; changes in the value of our investments in foreign entities; our ability to hedge interest rate and currency risk; our continued ability to maintain our status as a REIT; changes in tax laws or regulations that result in adverse tax consequences; risks relating to our joint venture properties; environmental liabilities; changes in insurance costs, the availability of comprehensive insurance coverage; security breaches that could compromise our information technology or infrastructure; natural disasters; the potential for terrorist activities; and the loss of key management personnel. We discuss these and other risks and uncertainties under the heading "Risk Factors" in our annual and quarterly periodic reports filed with the SEC. We may update that discussion in subsequent other periodic reports, but, except as required by law, we undertake no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.

Any questions, comments or suggestions regarding this Supplemental Information should be directed to Tom Ward, Senior Vice President of Investor Relations (tom.ward@simon.com or 317.685.7330).

 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 14

Table of Contents

OVERVIEW

STOCK INFORMATION

The Company's common stock and one series of 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        


CREDIT RATINGS

 

Standard & Poor's

 

 

 

 

 
 

 

Corporate

  A   (Stable Outlook)    

 

Senior Unsecured

  A   (Stable Outlook)    

 

Commercial Paper

  A1   (Stable Outlook)    

 

Preferred Stock

  BBB+   (Stable Outlook)    

 

Moody's

 

 

 

 

 
 

 

Senior Unsecured

  A2   (Stable Outlook)    

 

Commercial Paper

  P1   (Stable Outlook)    

 

Preferred Stock

  A3   (Stable Outlook)    

SENIOR UNSECURED DEBT COVENANTS (1)

  Required   Actual   Compliance

Total Debt to Total Assets (1)

  £65%   39%   Yes

Total Secured Debt to Total Assets (1)

  £50%   18%   Yes

Fixed Charge Coverage Ratio

  >1.5X   5.0X   Yes

Total Unencumbered Assets to Unsecured Debt

  ³125%   284%   Yes
(1)
Covenants for indentures dated June 7, 2005 and later. Total Assets are calculated in accordance with the indenture and essentially represent net operating income (NOI) divided by a 7.0% capitalization rate plus the value of other assets at cost.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 15

Table of Contents

SELECTED FINANCIAL AND EQUITY INFORMATION
(In thousands, except as noted)

 
THREE MONTHS ENDED
JUNE 30,
 

SIX MONTHS ENDED
JUNE 30,
 
   

 
2018
2017  
2018
2017  

Financial Highlights

                         

Total Revenue - Consolidated Properties

  $ 1,388,358   $ 1,361,548   $ 2,788,172   $ 2,707,311  

Consolidated Net Income

 
$

631,414
 
$

441,373
 
$

1,346,938
 
$

992,448
 

Net Income Attributable to Common Stockholders

  $ 547,004   $ 381,990   $ 1,167,658   $ 859,726  

Basic and Diluted Earnings per Common Share (EPS)

  $ 1.77   $ 1.23   $ 3.77   $ 2.75  

Funds from Operations (FFO) of the Operating Partnership

 
$

1,060,564
 
$

884,743
 
$

2,086,902
 
$

1,869,755
 

Basic and Diluted FFO per Share (FFOPS)

  $ 2.98   $ 2.47   $ 5.85   $ 5.20  

Dividends/Distributions per Share/Unit

 
$

1.95
 
$

1.75
 
$

3.90
 
$

3.50
 


Stockholders' Equity Information

 


AS OF
JUNE 30,
2018





AS OF
DECEMBER 31,
2017
 

Limited Partners' Units Outstanding at end of period

    46,824     46,879  

Common Shares Outstanding at end of period

    309,218     311,167  

Total Common Shares and Limited Partnership Units Outstanding at end of period

    356,042     358,046  

Weighted Average Limited Partnership Units Outstanding

    46,845     47,260  

Weighted Average Common Shares Outstanding:

             

Basic and Diluted - for purposes of EPS and FFOPS

    309,966     311,517  

 

             

Debt Information

             

Share of Consolidated Debt

  $ 23,344,483   $ 24,465,117  

Share of Joint Venture Debt

    7,175,646     7,011,525  

Share of Total Debt

  $ 30,520,129   $ 31,476,642  

 

             

Market Capitalization

             

Common Stock Price at end of period

  $ 170.19   $ 171.74  

Common Equity Capitalization, including Limited Partnership Units

  $ 60,594,803   $ 61,490,902  

Preferred Equity Capitalization, including Limited Partnership Preferred Units

    82,208     82,527  

Total Equity Market Capitalization

  $ 60,677,011   $ 61,573,429  

Total Market Capitalization - Including Share of Total Debt

  $ 91,197,140   $ 93,050,071  

 

             

Debt to Total Market Capitalization

    33.5%     33.8%  
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 16

Table of Contents

NET OPERATING INCOME (NOI) COMPOSITION (1)
For the Six Months Ended June 30, 2018

 

GRAPHIC

(1)
Based on our share of total NOI and does not reflect any property, entity or corporate-level debt.
(2)
Includes Klépierre, international Premium Outlets, international Designer Outlets and distributions from other international investments.
(3)
Includes Lifestyle Centers.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 17

Table of Contents

NET OPERATING INCOME OVERVIEW (1)
(In thousands)

 
FOR THE THREE MONTHS
ENDED JUNE 30,
  % GROWTH  
FOR THE SIX MONTHS
ENDED JUNE 30,
  % GROWTH
   

 
2018
2017    
2018
2017  

Comparable Property NOI (2)

  $ 1,373,384   $ 1,343,124   2.3%   $ 2,722,332   $ 2,662,061   2.3%

NOI from New Development, Redevelopment, Expansion and Acquisitions (3)

   
18,387
   
19,972
       
36,716
   
40,479
   

International Properties (4)

    113,923     101,021         245,673     197,580    

Our share of NOI from Investments (5)

    78,962     67,201         139,019     108,947    

                               

Portfolio NOI

  $ 1,584,656   $ 1,531,318   3.5%   $ 3,143,740   $ 3,009,067   4.5%

Corporate and Other NOI Sources (6)

   
80,815
   
54,667
       
122,658
   
99,570
   

Total NOI - See reconciliation on following page

  $ 1,665,471   $ 1,585,985       $ 3,266,398   $ 3,108,637    

Less: Joint Venture Partners' Share of NOI

   
279,336
   
269,148
       
554,510
   
530,315
   

Our Share of Total NOI

  $ 1,386,135   $ 1,316,837       $ 2,711,888   $ 2,578,322    
(1)
All amounts are presented at gross values unless otherwise indicated as our share.
(2)
Includes Malls, Premium Outlets, The Mills and Lifestyle Centers opened and operating as comparable for the period.
(3)
Includes total property NOI for properties undergoing redevelopment as well as incremental NOI for expansion properties not yet included in comparable properties.
(4)
Includes International Premium Outlets (except for Canadian International Premium Outlets included in Comparable NOI), International Designer Outlets and distributions from other international investments.
(5)
Includes our share of NOI of Klépierre, HBS, and other corporate investments.
(6)
Includes income components excluded from Portfolio NOI and Comparable Property NOI (domestic lease termination income, interest income, land sale gains, straight line rent, above/below market lease adjustments), gains on sale of equity instruments, unrealized gains and losses on equity instruments, Simon management company operations, and other assets.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 18

Table of Contents

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(In thousands, except as noted)

RECONCILIATION OF NET INCOME TO NOI

           

    

                       

 
THREE MONTHS ENDED
JUNE 30,
 

SIX MONTHS ENDED
JUNE 30,
   

  2018   2017   2018   2017

Reconciliation of NOI of consolidated entities:

                   

Consolidated Net Income

  $ 631,414   $ 441,373   $ 1,346,938   $ 992,448

Income and other tax expense

  10,137     5,990   16,357     2,470

Interest expense

  206,624     207,174   412,115     405,373

Income from unconsolidated entities

  (100,828)     (92,017)   (190,854)     (161,101)

Loss on extinguishment of debt

      128,618       128,618

Gain upon acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net

  (9,672)     (4,989)   (144,949)     (4,989)

Operating Income

  737,675     686,149   1,439,607     1,362,819

Depreciation and amortization

  320,198     322,396   637,134     633,228

NOI of consolidated entities

  $ 1,057,873   $ 1,008,545   $ 2,076,741   $ 1,996,047

Reconciliation of NOI of unconsolidated entities:

                   

Net Income

  $ 197,378   $ 204,051   $ 408,612   $ 401,794

Interest expense

  190,751     146,440   341,684     288,647

Gain on sale or disposal of, or recovery on, assets and interests in unconsolidated entities, net

  (25,792)       (25,792)    

Operating Income

  362,337     350,491   724,504     690,441

Depreciation and amortization

  166,299     159,748   326,134     313,202

NOI of unconsolidated entities

  $ 528,636   $ 510,239   $ 1,050,638   $ 1,003,643

Add: Our share of NOI from Klépierre, HBS and other corporate investments

  78,962     67,201   139,019     108,947

Total NOI

  $ 1,665,471   $ 1,585,985   $ 3,266,398   $ 3,108,637
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 19

Table of Contents

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(In thousands, except as noted)

RECONCILIATION OF FFO OF THE OPERATING PARTNERSHIP TO FUNDS AVAILABLE FOR DISTRIBUTION (OUR SHARE)

             

    

             

 


THREE
MONTHS ENDED
JUNE 30,
2018
 


SIX
MONTHS ENDED
JUNE 30,
2018
 

FFO of the Operating Partnership

  $ 1,060,564   $ 2,086,902  

Non-cash impacts to FFO(1)

    10,943     19,719  

FFO of the Operating Partnership excluding non-cash impacts

    1,071,507     2,106,621  

Tenant allowances

    (56,185)     (93,341)  

Operational capital expenditures

    (27,346)     (60,924)  

Funds available for distribution

  $ 987,976   $ 1,952,356  
   
   
   
(1)
Non-cash impacts to FFO of the Operating Partnership include:

    

             

 


THREE
MONTHS ENDED
JUNE 30,
2018
 


SIX
MONTHS ENDED
JUNE 30,
2018
 

Deductions:

             

Straight-line rent

  $ (6,418)   $ (15,023)  

Fair value of debt amortization

    (4)     8  

Fair market value of lease amortization

    (993)     (2,366)  

Additions:

             

Stock based compensation expense

    7,490     16,742  

Mortgage, financing fee and terminated swap amortization expense

    10,868     20,358  

  $ 10,943   $ 19,719  

This report contains measures of financial or operating performance that are not specifically defined by generally accepted accounting principles (GAAP) in the United States, including FFO, FFO per share, funds available for distribution, net operating income (NOI), portfolio NOI, and comparable property NOI. FFO and NOI are performance measures that are standard in the REIT business. We believe FFO and NOI provide investors with additional information concerning our operating performance and a basis to compare our performance with the performance of other REITs. We also use these measures internally to monitor the operating performance of our portfolio. Our computation of these non-GAAP measures may not be the same as similar measures reported by other REITs.

The non-GAAP financial measures used in this report should not be considered as alternatives to net income as a measure of our operating performance or to cash flows computed in accordance with GAAP as a measure of liquidity nor are they indicative of cash flows from operating and financial activities. Reconciliations of other non-GAAP measures used in this report to the most-directly comparable GAAP measure are included in the tables on pages 18 – 20 and in the Earnings Release for the latest period.

 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 20

Table of Contents

OTHER INCOME, OTHER EXPENSE AND CAPITALIZED INTEREST
(In thousands)

 
THREE MONTHS
ENDED JUNE 30,
 

SIX MONTHS
ENDED JUNE 30,
   

 
2018
2017  
2018
2017

Consolidated Properties

                       

Other Income

                       

Interest, dividend and distribution income  (1)

  $ 5,130   $ 5,373   $ 29,998   $ 8,754

Lease settlement income

    4,946     15,215     31,635     23,136

Gains on land sales

    741     5,034     2,015     7,744

Other  (2)

    87,003     42,716     132,281     90,004

Totals

  $ 97,820   $ 68,338   $ 195,929   $ 129,638

 

                       

Other Expense

                       

Ground leases

  $ 10,298   $ 10,424   $ 21,260   $ 20,406

Unrealized change in Fair Value of Equity Instruments  (3)

    (9,692)         (6,664)    

Professional fees and other

    10,269     11,388     27,781     25,221

Totals

  $ 10,875   $ 21,812   $ 42,377   $ 45,627

    

                       

 

Capitalized Interest

 
THREE MONTHS
ENDED JUNE 30,
 

SIX MONTHS
ENDED JUNE 30,
   

 
2018
2017  
2018
2017

Interest Capitalized during the Period:

                       

Our Share of Consolidated Properties

  $ 4,683   $ 5,594   $ 9,256   $ 15,629

Our Share of Joint Venture Properties

  $ 634   $ 667   $ 1,232   $ 1,228

                       

                       
(1)
Includes distributions from other international investments.

(2)
Includes ancillary property revenues, gift cards, marketing, media, parking and sponsorship revenues, gains on sale of non-retail investments, non-real estate investments and other miscellaneous income items.

(3)
Relates to period value fluctuations of Washington Prime Group ("WPG") equity and amounts not included in FFO.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 21

Table of Contents

U.S. MALLS AND PREMIUM OUTLETS OPERATING INFORMATION

 
AS OF JUNE 30,
 

 
2018
2017

Total Number of Properties

  175     176

Total Square Footage of Properties (in millions)

 

151.5
   
152.2

Ending Occupancy (1):

 

 
   
 

Consolidated Assets

  94.8%     95.3%

Unconsolidated Assets

  94.6%     94.7%

Total Portfolio

  94.7%     95.2%

Total Sales per Square Foot (PSF) (2):

 

 
   
 

Consolidated Assets

  $ 630   $ 602

Unconsolidated Assets

  $ 694   $ 665

Total Portfolio

  $ 646   $ 618

Base Minimum Rent PSF (3):

 

 
   
 

Consolidated Assets

  $ 52.14   $ 50.52

Unconsolidated Assets

  $ 58.37   $ 56.48

Total Portfolio

  $ 53.84   $ 52.10

Open / Close Spread

     

RENT PSF
(BASE MINIMUM RENT & CAM)


     
         

 

SQUARE FOOTAGE
OF OPENINGS





AVERAGE
OPENING RATE
PSF  (4)






AVERAGE
CLOSING RATE
PSF  (4)





LEASING
SPREAD  (4)



SPREAD TO
CLOSE %

6/30/18

  6,213,708   $ 75.55   $ 68.23   $ 7.32   10.7%

3/31/18

    6,044,658   $ 75.77   $ 67.32   $ 8.45     12.6%

12/31/17

    6,656,004   $ 72.68   $ 65.26   $ 7.42     11.4%

6/30/17

    6,447,859   $ 71.25   $ 63.12   $ 8.13     12.9%

3/31/17

    6,579,494   $ 72.11   $ 63.80   $ 8.31     13.0%

Occupancy Cost as a Percentage of Sales (5):

6/30/18

  12.9%                        

3/31/18

    13.0%                        

12/31/17

    13.2%                        

6/30/17

    13.0%                        

3/31/17

    13.0%                        
(1)
Ending Occupancy is the percentage of total owned square footage (GLA) which is leased as of the last day of the reporting period. We include all company owned space except for mall anchors, mall majors, mall freestanding and mall outlots in the calculation.
(2)
Total Sales PSF is defined as total sales of the tenants open and operating in the center during the reporting period divided by the associated company owned and occupied GLA on a trailing 12-month basis. Includes tenant sales activity for all months a tenant is open within the trailing 12-month period. In accordance with the standard definition of sales for regional malls adopted by the International Council of Shopping Centers, stores with less than 10,000 square feet are included for malls and stores with less than 20,000 square feet are included for Premium Outlets.
(3)
Base Minimum Rent PSF is the average base minimum rent charge in effect for the reporting period for all tenants that would qualify to be included in Ending Occupancy as defined above.
(4)
The Open / Close Spread is a measure that compares opening and closing rates on all spaces, including spaces greater than 10,000 square feet except for mall anchors, mall majors, mall freestanding and mall outlots. The Opening Rate is the initial cash Rent PSF for spaces leased during the trailing 12-month period, and includes new leases, renewals, amendments and relocations (including expansions and downsizings) if lease term is greater than one year. The Closing Rate is the final cash Rent PSF as of the month the tenant terminates or closes. Rent PSF includes Base Minimum Rent and Common Area Maintenance (CAM) rents.
(5)
Occupancy Cost as a Percentage of Sales is the trailing 12-month Base Minimum Rent, plus all applicable ancillary charges, plus overage rent, if applicable (based on last 12 months of sales), divided by the trailing 12-month Total Sales PSF for the same tenants.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 22

Table of Contents

THE MILLS AND INTERNATIONAL OPERATING INFORMATION

 
AS OF JUNE 30,
 

 
2018
2017

The Mills

         

Total Number of Properties

 

14
   
14

Total Square Footage of Properties (in millions)

 

21.1
   
21.1

Ending Occupancy(1)

 

98.3%
   
97.7%

Total Sales PSF(2)

 
$

604
 
$

581

Base Minimum Rent PSF(3)

 
$

31.53
 
$

30.56

Leasing Spread PSF(4)

 
$

8.63
 
$

13.49

Leasing Spread (Percentage Change)(4)

 

14.5%
   
24.9%

 

 

 
   
 

International Properties

 

 
   
 

Premium Outlets

 

 
   
 

Total Number of Properties

 

19
   
18

Total Square Footage of Properties (in millions)

 

7.1
   
6.6

Designer Outlets

 

 
   
 

Total Number of Properties

 

9
   
9

Total Square Footage of Properties (in millions)

 

2.2
   
2.2

Statistics for Premium Outlets in Japan(5)

 

 
   
 

Ending Occupancy

 

99.5%
   
99.7%

Total Sales PSF

 

¥ 106,641
   
¥ 102,308

Base Minimum Rent PSF

 

¥ 5,095
   
¥ 5,054
(1)
See footnote 1 on page 22 for definition, except Ending Occupancy is calculated on all company owned space.
(2)
See footnote 2 on page 22 for definition; calculation methodology is the same as for malls.
(3)
See footnote 3 on page 22 for definition.
(4)
See footnote 4 on page 22 for definition.
(5)
Information supplied by the managing venture partner; includes 9 properties.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 23

Table of Contents

U.S. MALLS AND PREMIUM OUTLETS LEASE EXPIRATIONS (1)

YEAR

 


NUMBER OF
LEASES
EXPIRING




SQUARE FEET




AVG. BASE
MINIMUM
RENT
PSF AT 6/30/18







PERCENTAGE OF
GROSS ANNUAL
RENTAL
REVENUES  (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Inline Stores and Freestanding

                       

Month to Month Leases

   
824
   
3,099,547
 
$

50.95
   
2.9%

2018 (7/1 - 12/31)

    616     1,695,397   $ 58.75     1.8%

2019

    2,637     9,480,434   $ 50.20     8.5%

2020

    2,121     7,352,608   $ 50.90     6.8%

2021

    1,989     7,732,601   $ 50.38     7.1%

2022

    1,913     7,419,654   $ 50.82     6.9%

2023

    2,103     8,101,027   $ 55.80     8.2%

2024

    1,546     6,021,468   $ 59.99     6.6%

2025

    1,416     5,348,626   $ 64.68     6.3%

2026

    1,293     4,603,416   $ 62.03     5.2%

2027

    1,041     3,853,211   $ 62.22     4.3%

2028

    535     2,500,758   $ 55.24     2.5%

2029 and Thereafter

    392     2,183,182   $ 45.54     1.9%

Specialty Leasing Agreements w/ terms in excess of 12 months

    1,325     3,412,823   $ 19.65     1.3%

 

                       

Anchors

                       

2018 (7/1 - 12/31)

   
6
   
891,016
 
$

8.52
   
0.1%

2019

    14     1,486,975   $ 3.70     0.1%

2020

    26     3,021,350   $ 4.90     0.3%

2021

    12     1,422,205   $ 4.72     0.1%

2022

    15     2,219,546   $ 6.22     0.2%

2023

    20     2,738,767   $ 6.34     0.3%

2024

    15     1,028,890   $ 11.25     0.2%

2025

    12     1,219,739   $ 8.37     0.2%

2026

    6     734,321   $ 4.60     0.1%

2027

    7     1,063,832   $ 4.39     0.1%

2028

    9     857,119   $ 7.43     0.1%

2029 and Thereafter

    15     1,910,580   $ 6.29     0.2%
(1)
Does not consider the impact of renewal options that may be contained in leases.
(2)
Annual rental revenues represent 2017 consolidated and joint venture combined base rental revenue.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 24

Table of Contents

U.S. MALLS AND PREMIUM OUTLETS TOP TENANTS

Top Inline Store Tenants (sorted by percentage of total base minimum rent for U.S. properties)

TENANT





NUMBER
OF
STORES






SQUARE
FEET
(000's)






PERCENT OF
TOTAL SQ. FT. IN
U.S. PROPERTIES





PERCENT OF TOTAL
BASE MINIMUM RENT
FOR U.S. PROPERTIES

 

                       

The Gap, Inc.

    360     3,684     2.0%     3.4%

L Brands, Inc.

    311     1,899     1.0%     2.1%

Ascena Retail Group Inc

    448     2,499     1.4%     1.9%

Signet Jewelers, Ltd.

    393     576     0.3%     1.6%

PVH Corporation

    237     1,446     0.8%     1.5%

Tapestry, Inc.

    227     909     0.5%     1.3%

Forever 21, Inc.

    83     1,339     0.7%     1.3%

Foot Locker, Inc.

    237     1,069     0.6%     1.3%

Abercrombie & Fitch Co.

    155     1,104     0.6%     1.2%

Luxottica Group SPA

    384     695     0.4%     1.2%

Top Anchors (sorted by percentage of total square footage in U.S. properties)  (1)

TENANT





NUMBER
OF
STORES






SQUARE
FEET
(000's)






PERCENT OF
TOTAL SQ. FT. IN
U.S. PROPERTIES





PERCENT OF TOTAL
BASE MINIMUM RENT
FOR U.S. PROPERTIES

 

                       

Macy's Inc.

    117     22,450     12.4%     0.4%

J.C. Penney Co., Inc.

    66     10,589     5.8%     0.3%

Sears Holdings Corporation (2)

    59     9,545     5.3%     0.3%

Dillard's, Inc.

    37     6,665     3.7%     *

Nordstrom, Inc.

    28     4,679     2.6%     0.1%

Hudson's Bay Company

    16     2,128     1.2%     0.1%

Dick's Sporting Goods, Inc.

    30     2,070     1.1%     0.5%

Belk, Inc.

    10     1,674     0.9%     0.1%

The Neiman Marcus Group, Inc.

    12     1,458     0.8%     0.1%

The Bon-Ton Stores, Inc.

    8     1,081     0.6%     *

Target Corporation

    5     751     0.4%     *
(1)
Includes space leased and owned by anchors in U.S. Malls; does not include Bloomingdale's The Outlet Store, Neiman Marcus Last Call, Nordstrom Rack, and Saks Fifth Avenue Off 5th.
(2)
Includes 5 stores contributed to a joint venture with Seritage.
*
Less than one-tenth of one percent.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 25

Table of Contents

CAPITAL EXPENDITURES
(In thousands)

     

UNCONSOLIDATED
PROPERTIES
   

 
CONSOLIDATED
PROPERTIES

 
TOTAL  
OUR
SHARE

New development projects

  $ 43,191   $ 100,597   $ 48,171

Redevelopment projects with incremental square footage and/or anchor replacement

   
118,793
   
102,059
   
49,727

Redevelopment projects with no incremental square footage (1)

   
62,826
   
18,957
   
8,165

 

                 

Subtotal new development and redevelopment projects

  224,810   221,613   106,063

Tenant allowances

   
79,811
   
28,016
   
13,530

Operational capital expenditures at properties:

                 

CAM expenditures (2)

    34,238     29,288     13,655

Non-CAM expenditures

    10,064     7,220     2,967

 

                 

Totals

  $ 348,923   $ 286,137   $ 136,215

Conversion from accrual to cash basis

   
(14,249)
   
69,751
   
33,204

 

                 

Capital Expenditures for the Six Months Ended 6/30/18 (3)

  $ 334,674   $ 355,888   $ 169,419

        

                 

Capital Expenditures for the Six Months Ended 6/30/17 (3)

  $ 318,948   $ 551,909   $ 254,599
(1)
Includes restoration projects as a result of property damage from natural disasters.
(2)
Expenditures included in the pool of charges allocated to tenants as CAM.
(3)
Agrees with the line item "Capital expenditures" on the Combined Statements of Cash Flows for the consolidated properties. No statement of cash flows is prepared for the joint venture properties; however, the above reconciliation was completed in the same manner as the reconciliation for the consolidated properties.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 26

Table of Contents

DEVELOPMENT ACTIVITY SUMMARY (1)
As of June 30, 2018
(in millions, except percent)

 

 

PLATFORM
    PROJECT TYPE


 
 

PROJECTED
GROSS COST (2)


 

PROJECTED
NET COST (3)


 


OUR
SHARE OF
NET COST (4)



 


EXPECTED
STABILIZED
RATE OF RETURN (4)



 


TOTAL
CONSTRUCTION
IN PROGRESS



 



OUR SHARE
OF TOTAL
CONSTRUCTION
IN PROGRESS




 

 

Malls

                         

 

 

Redevelopments

      $ 457       $ 452       $ 394         7%       $ 199       $ 167    

 

 

 

                                                               

 

 

Premium Outlets

                         

 

 

New Developments

      $ 522       $ 445       $ 234         8%       $ 192       $ 135    

 

 

Redevelopments

      $ 336       $ 320       $ 155         10%       $ 104       $ 51    

 

 

The Mills

                         

 

 

Redevelopments

      $ 35       $ 28       $ 24         11%       $ 16       $ 15    

 

 

Totals

    $ 1,350     $ 1,245     $ 807     8%     $ 511     $ 368  
                                                                     

Notes:

(1)
Represents projects under construction; new development and redevelopment projects with budgeted gross costs in excess of $5 million or incremental square footage. Includes both domestic and international properties.
(2)
Projected Gross Cost includes soft costs such as architecture and engineering fees, tenant costs (allowances/leasing commissions), development, legal and other fees, marketing costs, cost of capital, and other related costs.
(3)
Projected Net Cost includes cost recoveries such as land sales, tenant reimbursements, Tax Increment Financing (TIF), CAM, and other such recoveries.
(4)
Costs and returns are based upon current budget assumptions; actual costs may vary and no assurance can be given that expected returns will be achieved.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 27

Table of Contents

DEVELOPMENT ACTIVITY SUMMARY
As of June 30, 2018


GRAPHIC

(1)
Includes hotel, residential, office and other
(2)
Includes international Premium Outlets and international Designer Outlets
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 28

Table of Contents

DEVELOPMENT ACTIVITY REPORT(1)
As of June 30, 2018

PROPERTY/
LOCATION


PROJECT DESCRIPTION
ACTUAL/
PROJECTED
OPENING



COMPANY'S
OWNERSHIP
PERCENTAGE
             
Malls - Redevelopments            

West Town Mall - Knoxville, TN

 

Redevelopment

 

7/18

 

50%

College Mall - Bloomington, IN

 

Redevelopment including the addition of Ulta and small shops (opened 10/17) and Fresh Thyme (8/18)

 

8/18

 

100%

Phipps Plaza - Atlanta, GA

 

Relocation of Frontgate (opened 10/17) and addition of Public Kitchen (opened 3/18) and Grand Lux Café (8/18)

 

8/18

 

100%

Southdale Center - Edina (Minneapolis), MN

 

146 room Homewood Suites

 

9/18

 

50%

Town Center at Boca Raton - Boca Raton (Miami), FL

 

Redevelopment

 

11/18

 

100%

Auburn Mall - Auburn, MA

 

Redevelopment of the former Macy's Home Store building

 

2/19

 

56%

King of Prussia - King of Prussia (Philadelphia), PA

 

Redevelopment

 

6/19

 

100%

Roosevelt Field - Garden City (New York), NY

 

163 room Residence Inn by Marriott

 

7/19

 

50%

Shops at Riverside, The - Hackensack (New York), NJ

 

Redevelopment

 

12/19

 

100%

Southdale Center - Edina (Minneapolis), MN

 

Redevelopment of the former JCPenney building with Life Time Athletic and Life Time Sport/Work

 

12/19

 

100%

Other Properties

 

Redevelopment projects at various properties

 

 

 

 

 

 

 

 

 

 

 

Premium Outlets - New Developments

 

 

 

 

 

 

Denver Premium Outlets - Thornton (Denver), CO

 

328,000 SF upscale Premium Outlet Center

 

9/18

 

100%

Queretaro Premium Outlets - Queretaro, Mexico

 

294,000 SF upscale Premium Outlet Center

 

12/18

 

50%

 

 

 

 

 

 

 

Designer Outlet - New Developments

 

 

 

 

 

 

Malaga Designer Outlet - Malaga, Spain

 

191,000 SF upscale Designer Outlet Center

 

3/19

 

46%

Cannock Designer Outlet - Cannock, U.K.

 

197,000 SF upscale Designer Outler Center

 

5/20

 

20%
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 29

Table of Contents

DEVELOPMENT ACTIVITY REPORT(1)
As of June 30, 2018

PROPERTY/
LOCATION


PROJECT DESCRIPTION
ACTUAL/
PROJECTED
OPENING



COMPANY'S
OWNERSHIP
PERCENTAGE
             
             
Premium Outlets - Expansions            

Shisui Premium Outlets - Shisui, Japan

 

68,000 SF Phase III expansion

 

10/18

 

40%

Desert Hills Premium Outlets - Cabazon (Palm Springs), CA

 

Redevelopment and addition of specialty stores

 

11/18

 

100%

Toronto Premium Outlets - Toronto, Ontario, Canada

 

Redevelopment and 145,000 SF expansion (11/18) and addition of parking deck (opened 11/17)

 

11/18

 

50%

Johor Premium Outlets - Johor, Malaysia

 

45,000 SF Phase III expansion

 

12/18

 

50%

 

 

 

 

 

 

 

Designer Outlet - Expansions

 

 

 

 

 

 

Vancouver Designer Outlet - Vancouver (British Columbia), Canada

 

84,000 SF Phase II expansion

 

5/19

 

46%

Ashford Designer Outlet - Kent, United Kingdom

 

98,000 SF Phase II expansion

 

10/19

 

46%

 

 

 

 

 

 

 

The Mills - Redevelopments

 

 

 

 

 

 

Gurnee Mills - Gurnee (Chicago), IL

 

Redevelopment (7/18) including the addition of Dick's Sporting Goods (opened 5/18)

 

7/18

 

100%

Katy Mills - Katy (Houston), TX

 

Redevelopment

 

12/18

 

63%
(1)
Represent projects under construction; new development and redevelopment projects with budgeted gross costs in excess of $5 million or incremental square footage. Includes both domestic and international properties.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 30

Table of Contents

U.S. TENANT OPENINGS OF NOTE

PROPERTY NAME/LOCATION

  PROPERTY TYPE   NEW TENANT   FORMER TENANT

Openings during the First Six Months of 2018

           

Allen Premium Outlets - Allen (Dallas), TX

  Premium Outlets   H&M   Last Call Neiman Marcus

Cape Cod Mall - Hyannis, MA

  Mall   Ten Pin Eatery   N/A

Del Amo Fashion Center - Torrance (Los Angeles), CA

  Mall   Dave & Buster's   N/A

      Marshalls   N/A

Galleria, The - Houston, TX

  Mall   Fig & Olive   Saks Fifth Avenue  (1)

      Nobu   Saks Fifth Avenue  (1)

Gurnee Mills - Gurnee (Chicago), IL

  Mills   Dick's Sporting Goods   Sports Authority

Lehigh Valley Mall - Whitehall, PA

  Mall   Bob's Discount Furniture   H.H. Gregg

Ontario Mills - Ontario (Riverside), CA

  Mills   Aki-Home   Sports Authority

Phipps Plaza - Atlanta, GA

  Mall   The Public Kitchen & Bar   N/A

Premium Outlets Montréal - Montréal (Quebec), Canada

  Premium Outlets   H&M   N/A

Prien Lake Mall - Lake Charles, LA

  Mall   T.J. Maxx/HomeGoods   JCPenney  (2)

Shops at Clearfork, The - Fort Worth, TX

  Mall   AMC Theatres   N/A

      Pinstripes   N/A

Tyrone Square - St. Petersburg (Tampa), FL

  Mall   Dick's Sporting Goods   Sears

      Lucky's Market   Sears

      PetSmart   Sears

 

           

Openings Projected for the Remainder of 2018

           

Arundel Mills - Hanover (Baltimore), MD

  Mills   Aldi   H.H. Gregg

College Mall - Bloomington, IN

  Mall   Fresh Thyme   Sears

Del Amo Fashion Center - Torrance (Los Angeles), CA

  Mall   EMC Seafood   N/A

Falls, The - Miami, FL

  Mall   Shake Shack   N/A

Fashion Valley - San Diego, CA

  Mall   North Italia   N/A

Galleria, The - Houston, TX

  Mall   Blanco Tacos + Tequila   Saks Fifth Avenue  (1)

      Spice Route   Saks Fifth Avenue  (1)

Gulfport Premium Outlets - Gulfport, MS

  Premium Outlets   H&M   Gap  (1)

Gurnee Mills - Gurnee (Chicago), IL

  Mills   The RoomPlace   T.J. Maxx

Ingram Park Mall - San Antonio, TX

  Mall   Outback Steakhouse   N/A

King of Prussia - King of Prussia (Philadelphia), PA

  Mall   Eddie V's Prime Seafood   N/A

Lehigh Valley Mall - Whitehall, PA

  Mall   Apple  (1)   J. Crew/Ann Taylor

Orland Square - Orland Park (Chicago), IL

  Mall   Apple  (1)   Forever 21  (1)

Penn Square Mall - Oklahoma City, OK

  Mall   The Container Store   N/A

Phipps Plaza - Atlanta, GA

  Mall   Ecco Restaurant   N/A

      Grand Lux Café   N/A
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 31

Table of Contents

U.S. TENANT OPENINGS OF NOTE

PROPERTY NAME/LOCATION

  PROPERTY TYPE   NEW TENANT   FORMER TENANT

Pier Park - Panama City Beach, FL

  Lifestyle Center   SkyWheel   N/A

Plaza Carolina - Carolina (San Juan), PR

  Mall   Caribbean Cinemas   Sports Authority

Rio Grande Valley Premium Outlets - Mercedes (McAllen), TX

  Premium Outlets   H&M   VF Factory Outlet/Shoe Palace

Roosevelt Field - Garden City (New York), NY

  Mall   Small Batch   Houston's

San Francisco Premium Outlets - Livermore (San Francisco), CA

  Premium Outlets   H&M   Last Call Neiman Marcus

Shops at Riverside, The - Hackensack (New York), NJ

  Mall   Barnes & Noble  (1)   Saks Fifth Avenue

Smith Haven Mall - Lake Grove (New York), NY

  Mall   Texas de Brazil   N/A

Southdale Center - Edina (Minneapolis), MN

  Mall   Shake Shack   N/A

Southridge Mall - Greendale (Milwaukee), WI

  Mall   Dick's Sporting Goods   Sears

      Round 1   Sears

Stanford Shopping Center - Palo Alto (San Jose), CA

  Mall   Jeffrey   Ralph Lauren

Waterloo Premium Outlets - Waterloo, NY

  Premium Outlets   H&M   Eddie Bauer

West Town - Knoxville, TN

  Mall   Cinebarre Theatre   Regal Cinema

 

           

Openings Projected for 2019 and Beyond

           

Brea Mall - Brea (Los Angeles), CA

  Mall   Life Time Athletic   Sears

Cape Cod Mall - Hyannis, MA

  Mall   Target   Sears

Falls, The - Miami, FL

  Mall   Bulla Gastrobar   N/A

Forum Shops at Caesars, The - Las Vegas, NV

  Mall   True Food Kitchen   N/A

      The Slanted Door   N/A

Grapevine Mills - Grapevine (Dallas), TX

  Mills   Peppa Pig World of Play   Gala Formal

Mall at Rockingham Park, The - Salem (Boston), NH

  Mall   Cinemark Theatre   N/A

Mall of Georgia - Buford (Atlanta), GA

  Mall   Seasons 52   N/A

Midland Park Mall - Midland, TX

  Mall   Dillards  (1)   Sears

Northshore Mall - Peabody (Boston), MA

  Mall   Life Time Athletic   Sears

Orland Square - Orland Park (Chicago), IL

  Mall   AMC Theatre   Sears

Orlando International Premium Outlets - Orlando, FL

  Premium Outlets   H&M   Skechers  (1)/Payless/Forever 21  (1)

Phipps Plaza - Atlanta, GA

  Mall   Life Time Athletic   Belk

Pier Park - Panama City Beach, FL

  Lifestyle Center   I Love Sugar   N/A

      Paula Deen's Family Kitchen   N/A

Sawgrass Mills - Sunrise (Miami), FL

  Mills   Primark   JCPenney Outlet

      Seasons 52   N/A

Southdale Center - Edina (Minneapolis), MN

  Mall   Life Time Athletic & Sport/Work   JCPenney

      Restoration Hardware   N/A

Summit Mall - Akron, OH

  Mall   Arhaus   N/A

Woodfield Mall - Schaumburg (Chicago), IL

  Mall   Shake Shack   N/A
(1)
Tenant has an existing store at this center but will relocate or has relocated to a new location.
(2)
Tenant to remain in a portion of its existing space.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 32

Table of Contents

DENSIFICATION PROJECTS

PROPERTY NAME/LOCATION

  PROPERTY TYPE   PROJECT DESCRIPTION  

 

Openings in 2016

         

 

Phipps Plaza - Atlanta, GA *

 

Hotel

 

166 room AC Hotel by Marriott

 

 

 

 

 

 

 

 

 

Openings in 2017

         

 

Phipps Plaza - Atlanta, GA *

 

Residential

 

319 residential units

 

 

The Shops at Clearfork - Fort Worth, TX *

 

Office

 

130,000 SF of Class A office space

 

 

Houston Premium Outlets - Cypress (Houston), TX

 

Hotel

 

95 room Holiday Inn Express

 

 

Coconut Point - Estero, FL

 

Hotel

 

114 room Town Place Suites

 

 

Woodland Hills Mall - Tulsa, OK

 

Hotel

 

110 room Holiday Inn Express

 

 

 

 

 

 

 

 

 

Openings in 2018

         

 

Arundel Mills - Hanover (Baltimore), MD

 

Hotel

 

310 room Live! Hotel with 1,500 seat concert venue

 

 

Southdale Center - Edina (Minneapolis), MN *

 

Hotel

 

146 room Homewood Suites

 

 

 

 

 

 

 

 

 

Openings Projected for 2019 and Beyond

         

 

Allen Premium Outlets - Allen (Dallas), TX

 

Hotel

 

101 room Staybridge Suites

 

 

Auburn Mall - Auburn, MA *

 

Office

 

Reliant Medical - 88,000 SF

 

 

Colorado Mills - Lakewood (Denver), CO

 

Hotel

 

127 room SpringHill Suites

 

 

Firewheel Town Center - Garland (Dallas), TX

 

Hotel

 

90 room Fairfield Inn

 

 

Roosevelt Field - Garden City (New York), NY *

 

Hotel

 

163 room Residence Inn by Marriott

 

 

Round Rock Premium Outlets - Round Rock (Austin), TX

 

Hotel

 

170 room Embassy Suites

 

 

Round Rock Premium Outlets - Round Rock (Austin), TX *

 

Residential

 

460 residential units

 

 

Phipps Plaza - Atlanta, GA *

 

Hotel

 

150 room Nobu Hotel

 

 

 

Office

 

340,000 SF of Class A office space

 

 

Sawgrass Mills - Sunrise (Miami), FL *

 

Hotel

 

170 room AC Hotel by Marriott

 

 

Shops at Mission Viejo, The - Mission Viejo (Los Angeles), CA

 

Office

 

105,000 SF of Class A medical office space

 

 

Wolfchase Galleria - Memphis, TN

 

Hotel

 

112 room Courtyard by Marriott

 

 

*
Projects in which Simon has an ownership interest.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 33

Table of Contents

COMMON AND PREFERRED STOCK INFORMATION

                    CHANGES IN COMMON SHARE AND LIMITED PARTNERSHIP UNIT OWNERSHIP
                    
For the Period December 31, 2017 through June 30, 2018

 
COMMON
SHARES (1)

 


LIMITED
PARTNERSHIP
UNITS (2)

Number Outstanding at December 31, 2017

    311,166,854     46,879,625

Activity During the First Three Months of 2018:

   
 
   
 

Exchange of Limited Partnership Units for Common Stock

   
6,000
   
(6,000)

Redemption of Limited Partnership Units for Cash

   
   
(43,781)

Treasury Shares Acquired Related to Stock Grant Recipients' Tax Obligations and Other

   
(1,608)
   

Restricted Stock Awards (3)

   
236
   

Repurchase of Simon Property Group Common Stock in open market

   
(1,473,588)
   

Number Outstanding at March 31, 2018

   
309,697,894
   
46,829,844

Second Quarter Activity:

   
 
   
 

Redemption of Limited Partnership Units for Cash

   
   
(5,438)

Treasury Shares Acquired Related to Stock Grant Recipients' Tax Obligations and Other

   
(17,072)
   

Restricted Stock Awards (3)

   
51,520
   

Repurchase of Simon Property Group Common Stock in open market

   
(514,659)
   

Number Outstanding at June 30, 2018

   
309,217,683
   
46,824,406

Number of Limited Partnership Units and Common Shares at June 30, 2018

   
356,042,089
     

                    PREFERRED STOCK/UNITS OUTSTANDING AS OF JUNE 30, 2018
                    
($ in 000's, except per share amounts)

ISSUER

  DESCRIPTION  
NUMBER OF
SHARES/UNITS

 


PER SHARE
LIQUIDATION
PREFERENCE


 


AGGREGATE
LIQUIDATION
PREFERENCE


 

TICKER
SYMBOL

Preferred Stock:

                           

Simon Property Group, Inc.

 

Series J 8.375% Cumulative Redeemable (4)

   
796,948
 
$

50.00
 
$

39,847
   
SPGPrJ

Preferred Units:

 

 

   
 
   
 
   
 
   
 

Simon Property Group, L.P.

 

7.50% Cumulative Redeemable (5)

   
255,373
 
$

100.00
 
$

25,537
   
N/A
(1)
Excludes Limited Partnership preferred units relating to preferred stock outstanding.
(2)
Excludes units owned by the Company (shown here as Common Shares) and Limited Partnership Units not exchangeable for common shares.
(3)
Represents restricted stock awards issued pursuant to the Operating Partnership's 1998 Stock Incentive Plan, net of forfeitures.
(4)
Each share is redeemable on or after October 15, 2027. The shares are traded on the New York Stock Exchange. The closing price on June 30, 2018 was $71.11 per share.
(5)
Each preferred unit is redeemable upon the occurrence of certain tax triggering events.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 34

Table of Contents

CREDIT PROFILE
(As of June 30, unless otherwise indicated)

GRAPHIC

(1)
Includes WPG properties NOI and FFO through the effective date of the WPG spin-off, net of transaction expenses related to the spin-off of WPG.
(2)
Includes a $0.35 per share charge for loss on extinguishment of debt.
(3)
Includes a $0.33 per share charge for loss on extinguishment of debt and $0.22 per share for gain upon sale of marketable securities.
(4)
Includes a charge for loss on extinguishment of debt of $0.38 per share and $0.36 per share in 2016 and 2017, respectively.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 35

Table of Contents

SUMMARY OF INDEBTEDNESS
As of June 30, 2018
(In thousands)

 

TOTAL
INDEBTEDNESS


     


OUR
SHARE OF
INDEBTEDNESS



     



WEIGHTED
AVERAGE
END OF PERIOD
INTEREST RATE




     



WEIGHTED
AVERAGE
YEARS TO
MATURITY




 

Consolidated Indebtedness

                                                   

Mortgage Debt

                                                   

Fixed Rate

  $ 5,700,426           $ 5,590,731             4.01%             5.9    

Variable Rate Debt

    882,421             830,770             2.77%             3.4    

Total Mortgage Debt

    6,582,847             6,421,501             3.85%             5.6    

Unsecured Debt

       
 
 
 
       
 
 
 
       
 
 
 
       
 

Fixed Rate

    15,686,720             15,686,720             3.22%             7.7    

Revolving Credit Facility - USD Currency

    125,000             125,000             2.87%             4.0    

Revolving Credit Facility - Yen Currency

    201,140             201,140             0.78%             4.0    

Total Revolving Credit Facilities

    326,140             326,140             1.58%             4.0    

Global Commercial Paper - USD

    981,500             981,500             2.02%             0.1    

Total Unsecured Debt

    16,994,360             16,994,360             3.12%             7.2    

Premium

    14,345             14,345                                

Discount

    (48,152)             (48,152)                                

Debt Issuance Costs

    (106,818)             (105,991)                                

Other Debt Obligations

    68,420             68,420                                

 

                                                   
                     

Consolidated Mortgages and
Unsecured Indebtedness  (1)


 
$ 23,505,002           $ 23,344,483         3.32%       6.8  
                     
                     
                     

Joint Venture Indebtedness

   
 
 
 
 
 
   
 
 
 
 
 
   
 
 
 
 
 
   
 
 
 

Mortgage Debt

                                                   

Fixed Rate

  $ 13,651,767           $ 6,516,510             4.07%             5.9    

Floating Rate Debt (Hedged)  (1)

    65,500             9,602             4.84%             6.4    

Variable Rate Debt

    1,157,260             508,846             3.20%             3.3    

TMLP Debt  (2)

    424,029             162,713                            

Total Mortgage Debt

    15,298,556             7,197,671             4.00%             5.8    

Premium

    2,503             1,250                                

Discount

                                               

Debt Issuance Costs

    (48,807)             (23,275)                                

 

                                                   
                     

Joint Venture Mortgages and Other Indebtedness  (1)

  $ 15,252,252           $ 7,175,646         4.00%       5.8  
                     
                     
                     

 

                                           
                     

Our Share of Total Indebtedness

            $ 30,520,129       3.48%       6.5  
                     

 

TOTAL
INDEBTEDNESS


     


OUR
SHARE OF
INDEBTEDNESS



     



WEIGHTED
AVERAGE
END OF PERIOD
INTEREST RATE




     



WEIGHTED
AVERAGE
YEARS TO
MATURITY




 

Summary of Our Share of Fixed and Variable Rate Debt

                                                   

Consolidated

                                                   

Fixed

    94.9%           $ 22,146,492             3.36%             6.9    

Variable

    4.8%             1,129,571             2.43%             3.6    

Other Debt Obligations

    0.3%             68,420                                

    100.0%             23,344,483             3.32%             6.8    

Joint Venture

   
 
 
 
 
 
   
 
 
 
 
 
   
 
 
 
 
 
   
 
 
 

Fixed

    92.8%           $ 6,661,719             4.07%             5.9    

Variable

    7.2%             513,927             3.20%             3.3    

    100.0%             7,175,646             4.00%             5.8    

Total Debt

   
 
 
 
 
 
 
$

30,520,129
                               

 

                                                   
                     

Total Fixed Debt

  94.4%           $ 28,808,211         3.52%       6.7  
                     
                     
                     

 

                                           
                     

Total Variable Debt

  5.4%           $ 1,643,498         2.67%       3.5  
                     
                     
                     

Total Other Debt Obligations

  0.2%           $ 68,420                        
                     
                     
                     
(1)
Amounts give effect to outstanding derivative instruments as footnoted in the Property and Debt Information.
(2)
See footnote 21 on the Property and Debt information.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 36

Table of Contents

TOTAL DEBT AMORTIZATION AND MATURITIES BY YEAR (OUR SHARE)
As of June 30, 2018
(In thousands)

YEAR






OUR SHARE OF
UNSECURED
CONSOLIDATED
DEBT











WEIGHTED
AVERAGE
RATE OF
MATURING
UNSECURED
CONSOLIDATED
DEBT











OUR SHARE OF
SECURED
CONSOLIDATED
DEBT











WEIGHTED
AVERAGE
RATE OF
MATURING
SECURED
CONSOLIDATED
DEBT











OUR SHARE OF
UNCONSOLIDATED
JOINT VENTURE
DEBT











WEIGHTED
AVERAGE
RATE OF
MATURING
UNCONSOLIDATED
JOINT VENTURE
DEBT










OUR SHARE OF
TOTAL
DEBT








TOTAL
WEIGHTED
AVERAGE
RATE OF
MATURING
DEBT

 

                                               

2018

  $ 981,500     2.02%   $ 95,755     6.15%   $ 39,868     0.42%   $ 1,117,123     2.29%

2019

   
600,000
   
2.20%
   
56,633
   
   
268,081
   
3.06%
   
924,714
   
2.26%

2020

   
1,376,270
   
2.42%
   
720,243
   
3.98%
   
490,951
   
4.92%
   
2,587,464
   
3.27%

2021

   
2,150,000
   
3.60%
   
974,859
   
3.60%
   
1,065,069
   
4.43%
   
4,189,928
   
3.81%

2022

   
2,952,410
   
2.24%
   
836,830
   
3.45%
   
931,050
   
3.95%
   
4,720,290
   
2.81%

2023

   
1,100,000
   
2.75%
   
753,974
   
3.90%
   
519,124
   
3.27%
   
2,373,098
   
3.24%

2024

   
1,500,000
   
3.53%
   
156,089
   
3.35%
   
1,147,853
   
4.16%
   
2,803,942
   
3.78%

2025

   
1,184,180
   
2.39%
   
572,711
   
4.31%
   
768,649
   
3.60%
   
2,525,540
   
3.20%

2026

   
1,550,000
   
3.28%
   
2,061,712
   
3.89%
   
848,502
   
3.76%
   
4,460,214
   
3.66%

2027

   
1,500,000
   
3.38%
   
146,280
   
4.00%
   
377,994
   
3.76%
   
2,024,274
   
3.49%

2028

   
   
   
46,415
   
3.85%
   
725,543
   
4.11%
   
771,958
   
4.09%

Thereafter

   
2,100,000
   
5.10%
   
   
   
14,987
   
4.46%
   
2,114,987
   
5.09%

Face Amounts of Indebtedness

 
$

16,994,360
   
3.12%
 
$

6,421,501
   
3.85%
 
$

7,197,671
   
4.00%
 
$

30,613,532
   
3.48%

Premiums (Discounts) on Indebtedness, Net

   
(48,152)
         
14,345
         
1,250
         
(32,557)
     

Debt Issuance Costs

   
(83,905)
         
(22,086)
         
(23,275)
         
(129,266)
     

Other Debt Obligations

   
68,420
         
         
         
68,420
     

Our Share of Total Indebtedness

 
$

16,930,723

 



 

$

6,413,760

 



 

$

7,175,646

 



 

$

30,520,129

 


               
               
               
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 37

Table of Contents

PROPERTY AND DEBT INFORMATION
As of June 30, 2018

 

 

     

 

          DEBT INFORMATION  
                     

 

 

     

 

  LEGAL
TOTAL
MATURITY
    INTEREST
    INDEBTEDNESS ($ in 000's)  

 

PROPERTY NAME

  STATE  

CITY (CBSA)

  OWNERSHIP   SQUARE FEET   DATE     RATE (1)   TYPE   TOTAL   OUR SHARE  

 

Malls

     

 

                                 

1.

 

Apple Blossom Mall

  VA  

Winchester

  49.1%   472,802   (2)                          

2.

 

Auburn Mall

  MA  

Auburn

  56.4%   583,739   09/01/20       6.02%   Fixed     37,417     21,092  

3.

 

Aventura Mall (3)

  FL  

Miami Beach (Miami)

  33.3%   2,258,436   07/01/28       4.12%   Fixed     1,750,000     583,333  

4.

 

Avenues, The

  FL  

Jacksonville

  25.0%  (4) 1,112,663   02/06/23       3.60%   Fixed     110,000     27,500  

5.

 

Barton Creek Square

  TX  

Austin

  100.0%   1,430,265   (2)                          

6.

 

Battlefield Mall

  MO  

Springfield

  100.0%   1,201,176   09/01/22       3.95%   Fixed     118,673     118,673  

7.

 

Bay Park Square

  WI  

Green Bay

  100.0%   725,863   (2)                          

8.

 

Brea Mall

  CA  

Brea (Los Angeles)

  100.0%   1,319,561   (2)                          

9.

 

Briarwood Mall

  MI  

Ann Arbor

  50.0%   977,861   09/01/26       3.29%   Fixed     165,000     82,500  

10.

 

Brickell City Centre

  FL  

Miami

  25.0%   476,799   (2)                          

11.

 

Broadway Square

  TX  

Tyler

  100.0%   626,927   (2)                          

12.

 

Burlington Mall

  MA  

Burlington (Boston)

  100.0%   1,312,976   (2)                          

13.

 

Cape Cod Mall

  MA  

Hyannis

  56.4%   726,809   03/06/21       5.75%   Fixed     89,508     50,456  

14.

 

Castleton Square

  IN  

Indianapolis

  100.0%   1,381,856   (2)                          

15.

 

Cielo Vista Mall

  TX  

El Paso

  100.0%   1,245,359   (2)                          

16.

 

Coconut Point

  FL  

Estero

  50.0%   1,205,436   10/01/26       3.95%   Fixed     190,000     95,000  

17.

 

College Mall

  IN  

Bloomington

  100.0%   578,256   (2)                          

18.

 

Columbia Center

  WA  

Kennewick

  100.0%   795,185   (2)                          

19.

 

Copley Place

  MA  

Boston

  94.4%  (7) 1,259,167   (2)                          

20.

 

Coral Square

  FL  

Coral Springs (Miami)

  97.2%   944,141   (2)                          

21.

 

Cordova Mall

  FL  

Pensacola

  100.0%   929,794   (2)                          

22.

 

Crystal Mall

  CT  

Waterford

  78.2%   782,995   06/06/22       4.46%   Fixed     88,655     69,315  

23.

 

Dadeland Mall

  FL  

Miami

  50.0%   1,496,929   12/05/21       4.50%   Fixed     414,604     207,302  

24.

 

Del Amo Fashion Center

  CA  

Torrance (Los Angeles)

  50.0%   2,511,066   06/01/27       3.66%   Fixed     585,000     292,500  

25.

 

Domain, The

  TX  

Austin

  100.0%   1,233,373   08/01/21       5.44%   Fixed     186,646     186,646  

26.

 

Dover Mall

  DE  

Dover

  68.1%   928,295   08/06/21       5.57%   Fixed     84,508     57,542  

27.

 

Emerald Square

  MA  

North Attleboro (Providence, RI)

  56.4%   1,022,296   08/11/22       4.71%   Fixed     103,781     58,502  

28.

 

Empire Mall

  SD  

Sioux Falls

  100.0%   1,124,247   12/01/25       4.31%   Fixed     190,000     190,000  

29.

 

Falls, The

  FL  

Miami

  50.0%   836,401   09/01/26       3.45%   Fixed     150,000     75,000  

30.

 

Fashion Centre at Pentagon City, The

  VA  

Arlington (Washington, DC)

  42.5%   1,037,510   07/01/21       5.11%   Fixed     40,000     17,000  

                      07/01/21       4.87%   Fixed     410,000     174,250  

31.

 

Fashion Mall at Keystone, The

  IN  

Indianapolis

  100.0%   715,974   (2)                          

32.

 

Fashion Valley

  CA  

San Diego

  50.0%   1,720,683   01/04/21       4.30%   Fixed     436,436     218,218  

33.

 

Firewheel Town Center

  TX  

Garland (Dallas)

  100.0%   996,553   (2)                          

34.

 

Florida Mall, The

  FL  

Orlando

  50.0%   1,718,110   09/05/20       5.25%   Fixed     325,761     162,881  

35.

 

Forum Shops at Caesars, The

  NV  

Las Vegas

  100.0%   663,796   (2)                          

36.

 

Galleria, The

  TX  

Houston

  50.4%   2,016,344   03/01/25       3.55%   Fixed     1,200,000     604,440  

37.

 

Greenwood Park Mall

  IN  

Greenwood (Indianapolis)

  100.0%   1,288,826   (2)                          
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 38

Table of Contents

PROPERTY AND DEBT INFORMATION
As of June 30, 2018

 

 

     

 

          DEBT INFORMATION  
                     

 

 

     

 

  LEGAL
TOTAL
MATURITY
    INTEREST
    INDEBTEDNESS ($ in 000's)  

 

PROPERTY NAME

  STATE  

CITY (CBSA)

  OWNERSHIP   SQUARE FEET   DATE     RATE (1)   TYPE   TOTAL   OUR SHARE  

38.

 

Haywood Mall

  SC  

Greenville

  100.0%   1,237,266   (2)                          

39.

 

Ingram Park Mall

  TX  

San Antonio

  100.0%   1,111,194   06/01/21       5.38%   Fixed     129,411     129,411  

40.

 

King of Prussia

  PA  

King of Prussia (Philadelphia)

  100.0%   2,656,465   (2)                          

41.

 

La Plaza Mall

  TX  

McAllen

  100.0%   1,259,359   (2)                          

42.

 

Lakeline Mall

  TX  

Cedar Park (Austin)

  100.0%   1,099,539   (2)                          

43.

 

Lehigh Valley Mall

  PA  

Whitehall

  50.0%   1,181,120   11/01/27       4.06%   Fixed     198,028     99,014  

44.

 

Lenox Square

  GA  

Atlanta

  100.0%   1,559,674   (2)                          

45.

 

Livingston Mall

  NJ  

Livingston (New York)

  100.0%   977,949   (2)                          

46.

 

Mall at Rockingham Park, The

  NH  

Salem (Boston)

  28.2%   1,024,159   06/01/26       4.04%   Fixed     262,000     73,845  

47.

 

Mall at Tuttle Crossing, The

  OH  

Dublin (Columbus)

  50.0%   1,122,999   05/01/23       3.56%   Fixed     120,099     60,049  

48.

 

Mall of Georgia

  GA  

Buford (Atlanta)

  100.0%   1,845,186   (2)                          

49.

 

Mall of New Hampshire, The

  NH  

Manchester

  56.4%   794,098   07/01/25       4.11%   Fixed     150,000     84,555  

50.

 

McCain Mall

  AR  

N. Little Rock

  100.0%   793,480   (2)                          

51.

 

Meadowood Mall

  NV  

Reno

  50.0%   901,357   11/06/21       5.82%   Fixed     113,437     56,719  

52.

 

Menlo Park Mall

  NJ  

Edison (New York)

  100.0%   1,333,913   (2)                          

53.

 

Miami International Mall

  FL  

Miami

  47.8%   1,082,201   02/06/24       4.42%   Fixed     160,000     76,442  

54.

 

Midland Park Mall

  TX  

Midland

  100.0%   635,788   09/06/22       4.35%   Fixed     76,323     76,323  

55.

 

Miller Hill Mall

  MN  

Duluth

  100.0%   831,562   (2)                          

56.

 

Montgomery Mall

  PA  

North Wales (Philadelphia)

  79.4%   1,100,216   05/01/24       4.57%   Fixed     100,000     79,351  

57.

 

North East Mall

  TX  

Hurst (Dallas)

  100.0%   1,669,186   (2)                          

58.

 

Northgate Mall

  WA  

Seattle

  100.0%   1,045,518   (2)                          

59.

 

Northshore Mall

  MA  

Peabody (Boston)

  56.4%   1,595,515   07/05/23       3.30%   Fixed     246,337     138,861  

60.

 

Ocean County Mall

  NJ  

Toms River (New York)

  100.0%   898,525   (2)                          

61.

 

Orland Square

  IL  

Orland Park (Chicago)

  100.0%   1,231,576   (2)                          

62.

 

Oxford Valley Mall

  PA  

Langhorne (Philadelphia)

  85.5%   1,338,051   12/07/20       4.77%   Fixed     61,812     52,874  

63.

 

Penn Square Mall

  OK  

Oklahoma City

  94.5%   1,064,988   01/01/26       3.84%   Fixed     310,000     292,938  

64.

 

Pheasant Lane Mall

  NH  

Nashua

     (10) 979,632   (2)                          

65.

 

Phipps Plaza

  GA  

Atlanta

  100.0%   825,689   (2)                          

66.

 

Plaza Carolina

  PR  

Carolina (San Juan)

  100.0%   1,158,577   07/27/21       3.19%   Variable     225,000     225,000  

67.

 

Prien Lake Mall

  LA  

Lake Charles

  100.0%   842,640   (2)                          

68.

 

Quaker Bridge Mall

  NJ  

Lawrenceville

  50.0%   1,081,469   05/01/26       4.50%   Fixed     180,000     90,000  

69.

 

Rockaway Townsquare

  NJ  

Rockaway (New York)

  100.0%   1,246,396   (2)                          

70.

 

Roosevelt Field

  NY  

Garden City (New York)

  100.0%   2,378,094   (2)                          

71.

 

Ross Park Mall

  PA  

Pittsburgh

  100.0%   1,239,652   (2)                          

72.

 

Santa Rosa Plaza

  CA  

Santa Rosa

  100.0%   692,034   (2)                          

73.

 

Shops at Chestnut Hill, The

  MA  

Chestnut Hill (Boston)

  94.4%   470,067   11/01/23       4.69%   Fixed     120,000     113,328  

74.

 

Shops at Clearfork, The

  TX  

Fort Worth

  45.0%   549,009   03/18/21   (8)   3.84%   Variable     167,977     75,590  

75.

 

Shops at Crystals, The

  NV  

Las Vegas

  50.0%   262,305   07/01/26       3.74%   Fixed     550,000     275,000  
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 39

Table of Contents

PROPERTY AND DEBT INFORMATION
As of June 30, 2018

 

 

     

 

          DEBT INFORMATION  
                     

 

 

     

 

  LEGAL
TOTAL
MATURITY
    INTEREST
    INDEBTEDNESS ($ in 000's)  

 

PROPERTY NAME

  STATE  

CITY (CBSA)

  OWNERSHIP   SQUARE FEET   DATE     RATE (1)   TYPE   TOTAL   OUR SHARE  

76.

 

Shops at Mission Viejo, The

  CA  

Mission Viejo (Los Angeles)

  51.0%   1,250,211   02/01/23       3.61%   Fixed     295,000     150,450  

77.

 

Shops at Nanuet, The

  NY  

Nanuet

  100.0%   757,928   (2)                          

78.

 

Shops at Riverside, The

  NJ  

Hackensack (New York)

  100.0%   667,373   02/01/23       3.37%   Fixed     130,000     130,000  

79.

 

Smith Haven Mall

  NY  

Lake Grove (New York)

  25.0%  (4) 1,301,225   05/29/20   (8)   3.29%   Variable     180,000     45,000  

80.

 

Solomon Pond Mall

  MA  

Marlborough (Boston)

  56.4%   886,468   11/01/22       4.01%   Fixed     98,506     55,528  

81.

 

South Hills Village

  PA  

Pittsburgh

  100.0%   1,128,707   (2)                          

82.

 

South Shore Plaza

  MA  

Braintree (Boston)

  100.0%   1,587,277   (2)                          

83.

 

Southdale Center

  MN  

Edina (Minneapolis)

  100.0%   1,050,318   04/01/23       3.84%   Fixed     146,030     146,030  

84.

 

SouthPark

  NC  

Charlotte

  100.0%   1,678,560   (2)                          

85.

 

Southridge Mall

  WI  

Greendale (Milwaukee)

  100.0%   1,220,961   06/06/23       3.85%   Fixed     118,180     118,180  

86.

 

Springfield Mall (3)

  PA  

Springfield (Philadelphia)

  50.0%   609,960   10/06/25       4.45%   Fixed     62,188     31,094  

87.

 

Square One Mall

  MA  

Saugus (Boston)

  56.4%   930,279   01/06/22       5.47%   Fixed     90,453     50,989  

88.

 

St. Charles Towne Center

  MD  

Waldorf (Washington, DC)

  100.0%   979,987   (2)                          

89.

 

St. Johns Town Center

  FL  

Jacksonville

  50.0%   1,392,308   09/11/24       3.82%   Fixed     350,000     175,000  

90.

 

Stanford Shopping Center

  CA  

Palo Alto (San Jose)

  94.4%  (7) 1,343,254   (2)                          

91.

 

Stoneridge Shopping Center

  CA  

Pleasanton (San Francisco)

  49.9%   1,300,381   09/05/26       3.50%   Fixed     330,000     164,670  

92.

 

Summit Mall

  OH  

Akron

  100.0%   776,580   10/01/26       3.31%   Fixed     85,000     85,000  

93.

 

Tacoma Mall

  WA  

Tacoma (Seattle)

  100.0%   1,319,607   (2)                          

94.

 

Tippecanoe Mall

  IN  

Lafayette

  100.0%   862,303   (2)                          

95.

 

Town Center at Boca Raton

  FL  

Boca Raton (Miami)

  100.0%   1,778,618   (2)                          

96.

 

Town Center at Cobb

  GA  

Kennesaw (Atlanta)

  100.0%   1,280,978   05/01/22       4.76%   Fixed     187,064     187,064  

97.

 

Towne East Square

  KS  

Wichita

  100.0%   1,145,680   (2)                          

98.

 

Treasure Coast Square

  FL  

Jensen Beach

  100.0%   876,214   (2)                          

99.

 

Tyrone Square

  FL  

St. Petersburg (Tampa)

  100.0%   960,215   (2)                          

100.

 

University Park Mall

  IN  

Mishawaka

  100.0%   918,724   (2)                          

101.

 

Walt Whitman Shops

  NY  

Huntington Station (New York)

  100.0%   1,084,775   (2)                          

102.

 

West Town Mall

  TN  

Knoxville

  50.0%   1,338,871   07/01/22       4.37%   Fixed     210,000     105,000  

103.

 

Westchester, The

  NY  

White Plains (New York)

  40.0%   809,393   05/05/20       6.00%   Fixed     328,540     131,417  

104.

 

White Oaks Mall

  IL  

Springfield

  80.7%   926,465   06/01/23   (8)   4.84%   Variable     50,000     40,339  

105.

 

Wolfchase Galleria

  TN  

Memphis

  94.5%   1,151,615   11/01/26       4.15%   Fixed     160,595     151,756  

106.

 

Woodfield Mall

  IL  

Schaumburg (Chicago)

  50.0%   2,150,649   03/05/24       4.50%   Fixed     416,380     208,191  

107.

 

Woodland Hills Mall

  OK  

Tulsa

  94.5%   1,091,709   (2)                          

 

Total Mall Square Footage

   

    121,332,510                

 

 

 

     

 

                                     

 

Lifestyle Centers

                             

1.

 

ABQ Uptown

  NM  

Albuquerque

  100.0%   230,061   (2)                          

2.

 

Hamilton Town Center

  IN  

Noblesville (Indianapolis)

  50.0%   672,905   04/01/22       4.81%   Fixed     79,919     39,959  

3.

 

Pier Park

  FL  

Panama City Beach

  65.6%   903,611   (2)                          

4.

 

University Park Village

  TX  

Fort Worth

  100.0%   163,418   05/01/28       3.85%   Fixed     55,000     55,000  

 

Total Lifestyle Centers Square Footage

  1,969,995                              

 

 

 

     

 

                                     
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 40

Table of Contents

PROPERTY AND DEBT INFORMATION
As of June 30, 2018

 

 

     

 

          DEBT INFORMATION  
                     

 

 

     

 

  LEGAL
TOTAL
MATURITY
    INTEREST
    INDEBTEDNESS ($ in 000's)  

 

PROPERTY NAME

  STATE  

CITY (CBSA)

  OWNERSHIP
SQUARE FEET
DATE
  RATE (1)
TYPE

TOTAL
OUR SHARE  

 

Premium Outlets

   

                   

1.

 

Albertville Premium Outlets

  MN  

Albertville (Minneapolis)

  100.0%   429,551   (2)                          

2.

 

Allen Premium Outlets

  TX  

Allen (Dallas)

  100.0%   544,768   (2)                          

3.

 

Aurora Farms Premium Outlets

  OH  

Aurora (Cleveland)

  100.0%   271,711   (2)                          

4.

 

Birch Run Premium Outlets

  MI  

Birch Run (Detroit)

  100.0%   606,452   02/06/26       4.21%   Fixed     123,000     123,000  

5.

 

Camarillo Premium Outlets

  CA  

Camarillo (Los Angeles)

  100.0%   675,523   (2)                          

6.

 

Carlsbad Premium Outlets

  CA  

Carlsbad (San Diego)

  100.0%   289,367   (2)                          

7.

 

Carolina Premium Outlets

  NC  

Smithfield (Raleigh)

  100.0%   438,822   12/01/22       3.36%   Fixed     44,746     44,746  

8.

 

Charlotte Premium Outlets

  NC  

Charlotte

  50.0%   398,709   07/01/28       4.27%   Fixed     100,000     50,000  

9.

 

Chicago Premium Outlets

  IL  

Aurora (Chicago)

  100.0%   687,562   (2)                          

10.

 

Cincinnati Premium Outlets

  OH  

Monroe (Cincinnati)

  100.0%   398,737   (2)                          

11.

 

Clarksburg Premium Outlets

  MD  

Clarksburg (Washington, DC)

  66.0%   390,125   01/01/28       3.95%   Fixed     160,000     105,600  

12.

 

Clinton Crossing Premium Outlets

  CT  

Clinton

  100.0%   276,101   (2)                          

13.

 

Desert Hills Premium Outlets

  CA  

Cabazon (Palm Springs)

  100.0%   650,263   (2)                          

14.

 

Edinburgh Premium Outlets

  IN  

Edinburgh (Indianapolis)

  100.0%   377,979   (2)                          

15.

 

Ellenton Premium Outlets

  FL  

Ellenton (Tampa)

  100.0%   476,906   12/01/25       4.30%   Fixed     178,000     178,000  

16.

 

Folsom Premium Outlets

  CA  

Folsom (Sacramento)

  100.0%   297,548   (2)                          

17.

 

Gilroy Premium Outlets

  CA  

Gilroy (San Jose)

  100.0%   578,204   (2)                          

18.

 

Gloucester Premium Outlets

  NJ  

Blackwood (Philadelphia)

  50.0%   369,688   03/01/23   (8)   3.59%   Variable     86,000     43,000  

19.

 

Grand Prairie Premium Outlets

  TX  

Grand Prairie (Dallas)

  100.0%   416,343   04/01/23       3.66%   Fixed     115,176     115,176  

20.

 

Grove City Premium Outlets

  PA  

Grove City (Pittsburgh)

  100.0%   530,769   12/01/25       4.31%   Fixed     140,000     140,000  

21.

 

Gulfport Premium Outlets

  MS  

Gulfport

  100.0%   300,033   12/01/25       4.35%   Fixed     50,000     50,000  

22.

 

Hagerstown Premium Outlets

  MD  

Hagerstown (Baltimore/ Washington, DC)

  100.0%   485,209   02/06/26       4.26%   Fixed     76,574     76,574  

23.

 

Houston Premium Outlets

  TX  

Cypress (Houston)

  100.0%   542,072   (2)                          

24.

 

Jackson Premium Outlets

  NJ  

Jackson (New York)

  100.0%   285,692   (2)                          

25.

 

Jersey Shore Premium Outlets

  NJ  

Tinton Falls (New York)

  100.0%   434,411   (2)                          

26.

 

Johnson Creek Premium Outlets

  WI  

Johnson Creek

  100.0%   277,672   (2)                          

27.

 

Kittery Premium Outlets

  ME  

Kittery

  100.0%   259,174   (2)                          

28.

 

Las Americas Premium Outlets

  CA  

San Diego

  100.0%   554,107   (2)                          

29.

 

Las Vegas North Premium Outlets

  NV  

Las Vegas

  100.0%   676,114   (2)                          

30.

 

Las Vegas South Premium Outlets

  NV  

Las Vegas

  100.0%   535,411   (2)                          

31.

 

Lee Premium Outlets

  MA  

Lee

  100.0%   224,846   06/01/26   (15)   4.17%   Fixed     52,178     52,178  

32.

 

Leesburg Corner Premium Outlets

  VA  

Leesburg (Washington, DC)

  100.0%   478,225   (2)                          

33.

 

Lighthouse Place Premium Outlets

  IN  

Michigan City (Chicago, IL)

  100.0%   454,782   (2)                          

34.

 

Merrimack Premium Outlets

  NH  

Merrimack

  100.0%   408,902   07/01/23       3.78%   Fixed     123,026     123,026  

35.

 

Napa Premium Outlets

  CA  

Napa

  100.0%   179,216   (2)                          

36.

 

Norfolk Premium Outlets

  VA  

Norfolk

  65.0%   332,101   (2)                          

37.

 

North Bend Premium Outlets

  WA  

North Bend (Seattle)

  100.0%   223,560   (2)                          

38.

 

North Georgia Premium Outlets

  GA  

Dawsonville (Atlanta)

  100.0%   540,745   (2)                          

39.

 

Orlando International Premium Outlets

  FL  

Orlando

  100.0%   773,582   (2)                          
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 41

Table of Contents

PROPERTY AND DEBT INFORMATION
As of June 30, 2018

 

 

     

 

          DEBT INFORMATION  
                     

 

 

     

 

  LEGAL
TOTAL
MATURITY
    INTEREST
    INDEBTEDNESS ($ in 000's)  

 

PROPERTY NAME

  STATE  

CITY (CBSA)

  OWNERSHIP
SQUARE FEET
DATE
  RATE (1)
TYPE

TOTAL
OUR SHARE  

40.

 

Orlando Vineland Premium Outlets

  FL  

Orlando

  100.0%   656,905   (2)                          

41.

 

Petaluma Village Premium Outlets

  CA  

Petaluma (San Francisco)

  100.0%   201,704   (2)                          

42.

 

Philadelphia Premium Outlets

  PA  

Limerick (Philadelphia)

  100.0%   549,153   (2)                          

43.

 

Phoenix Premium Outlets

  AZ  

Chandler (Phoenix)

  100.0%   356,500   (2)                          

44.

 

Pismo Beach Premium Outlets

  CA  

Pismo Beach

  100.0%   147,430   09/01/26   (17)   3.33%   Fixed     35,733     35,733  

45.

 

Pleasant Prairie Premium Outlets

  WI  

Pleasant Prairie (Chicago, IL/ Milwaukee)

  100.0%   402,613   09/01/27       4.00%   Fixed     145,000     145,000  

46.

 

Puerto Rico Premium Outlets

  PR  

Barceloneta

  100.0%   350,047   07/26/21       3.19%   Variable     160,000     160,000  

47.

 

Queenstown Premium Outlets

  MD  

Queenstown (Baltimore)

  100.0%   289,594   09/01/26   (17)   3.33%   Fixed     62,775     62,775  

48.

 

Rio Grande Valley Premium Outlets

  TX  

Mercedes (McAllen)

  100.0%   603,928   (2)                          

49.

 

Round Rock Premium Outlets

  TX  

Round Rock (Austin)

  100.0%   488,698   (2)                          

50.

 

San Francisco Premium Outlets

  CA  

Livermore (San Francisco)

  100.0%   696,882   (2)                          

51.

 

San Marcos Premium Outlets

  TX  

San Marcos (Austin/ San Antonio)

  100.0%   731,004   (2)                          

52.

 

Seattle Premium Outlets

  WA  

Tulalip (Seattle)

  100.0%   554,831   (2)                          

53.

 

Silver Sands Premium Outlets

  FL  

Destin

  50.0%   450,954   06/01/22       3.93%   Fixed     100,000     50,000  

54.

 

St. Augustine Premium Outlets

  FL  

St. Augustine (Jacksonville)

  100.0%   327,703   (2)                          

55.

 

St. Louis Premium Outlets

  MO  

St. Louis (Chesterfield)

  60.0%   351,486   10/06/24       4.06%   Fixed     95,000     57,000  

56.

 

Tampa Premium Outlets

  FL  

Lutz (Tampa)

  100.0%   459,485   (2)                          

57.

 

Tanger Outlets - Columbus(3)

  OH  

Sunbury (Columbus)

  50.0%   355,249   11/28/21   (8)   3.74%   Variable     85,000     42,500  

58.

 

Tanger Outlets - Galveston/Houston(3)

  TX  

Texas City

  50.0%   352,705   07/01/22   (8)   3.74%   Variable     80,000     40,000  

59.

 

The Crossings Premium Outlets

  PA  

Tannersville

  100.0%   411,747   12/01/22       3.41%   Fixed     109,400     109,400  

60.

 

Tucson Premium Outlets

  AZ  

Marana (Tucson)

  100.0%   363,437   (2)                          

61.

 

Twin Cities Premium Outlets

  MN  

Eagan

  35.0%   408,930   11/06/24       4.32%   Fixed     115,000     40,250  

62.

 

Vacaville Premium Outlets

  CA  

Vacaville

  100.0%   440,262   (2)                          

63.

 

Waikele Premium Outlets

  HI  

Waipahu (Honolulu)

  100.0%   219,289   (2)                          

64.

 

Waterloo Premium Outlets

  NY  

Waterloo

  100.0%   421,695   (2)                          

65.

 

Williamsburg Premium Outlets

  VA  

Williamsburg

  100.0%   522,450   02/06/26       4.23%   Fixed     185,000     185,000  

66.

 

Woodburn Premium Outlets

  OR  

Woodburn (Portland)

  100.0%   389,821   (2)                          

67.

 

Woodbury Common Premium Outlets

  NY  

Central Valley (New York)

  100.0%   899,106   (2)                          

68.

 

Wrentham Village Premium Outlets

  MA  

Wrentham (Boston)

  100.0%   660,186   (2)                          

 

                                                 

 

Total U.S. Premium Outlet Square Footage

  30,134,776                              
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 42

Table of Contents

PROPERTY AND DEBT INFORMATION
As of June 30, 2018

 

 

                  DEBT INFORMATION  
                     

 

 

          LEGAL
TOTAL
MATURITY
    INTEREST
INDEBTEDNESS ($ IN 000's)  

 

PROPERTY NAME

  STATE   CITY (CBSA)   OWNERSHIP
SQUARE FEET
DATE
  RATE (1)
TYPE

TOTAL
OUR SHARE  

 

The Mills

                                         

1.

 

Arizona Mills

  AZ   Tempe (Phoenix)   100.0%   1,236,907   07/01/20       5.76%   Fixed     154,539     154,539  

2.

 

Arundel Mills

  MD   Hanover (Baltimore)   59.3%   1,664,305   02/06/24       4.29%   Fixed     385,000     228,113  

3.

 

Colorado Mills

  CO   Lakewood (Denver)   37.5%   1,411,341   11/01/24       4.28%   Fixed     134,714     50,518  

                      07/01/21       5.04%   Fixed     26,317     9,869  

4.

 

Concord Mills

  NC   Concord (Charlotte)   59.3%   1,362,404   11/01/22       3.84%   Fixed     235,000     139,261  

5.

 

Grapevine Mills

  TX   Grapevine (Dallas)   59.3%   1,781,623   10/01/24       3.83%   Fixed     268,000     158,817  

6.

 

Great Mall

  CA   Milpitas (San Jose)   100.0%   1,366,036   (2)                          

7.

 

Gurnee Mills

  IL   Gurnee (Chicago)   100.0%   1,935,902   10/01/26       3.99%   Fixed     267,054     267,054  

8.

 

Katy Mills

  TX   Katy (Houston)   62.5%  (4) 1,789,854   12/06/22       3.49%   Fixed     140,000     35,000  

9.

 

Mills at Jersey Gardens, The

  NJ   Elizabeth   100.0%   1,303,000   11/01/20       3.83%   Fixed     350,000     350,000  

10.

 

Ontario Mills

  CA   Ontario (Riverside)   50.0%   1,421,477   03/05/22       4.25%   Fixed     308,660     154,330  

11.

 

Opry Mills

  TN   Nashville   100.0%   1,168,641   07/01/26       4.09%   Fixed     375,000     375,000  

12.

 

Outlets at Orange, The

  CA   Orange (Los Angeles)   50.0%   866,972   04/01/24       4.22%   Fixed     215,000     107,500  

13.

 

Potomac Mills

  VA   Woodbridge (Washington, DC)   100.0%   1,540,409   11/01/26       3.46%   Fixed     416,000     416,000  

14.

 

Sawgrass Mills

  FL   Sunrise (Miami)   100.0%   2,274,297   (2)                          

 

Total The Mills Square Footage

  21,123,168                              

 

Other Properties

                             

  Bangor Mall, Calhoun Outlet Marketplace, Circle Centre, Florida Keys Outlet Marketplace, Gaffney Outlet Marketplace, Lebanon Outlet Marketplace, Liberty Tree Mall, Liberty Village Outlet Marketplace, Lincoln Plaza, Orlando Outlet Marketplace, Osage Beach Outlet Marketplace, Philadelphia Mills, and Sugarloaf Mills               (15)(21)             667,183     324,100  

 

Total Other Properties Square Footage

  7,215,932                              

 

 

 

                                             

 

TOTAL U.S. SQUARE FOOTAGE (11)(24)

  181,776,381                              
       
       
       
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 43

Table of Contents

PROPERTY AND DEBT INFORMATION
As of June 30, 2018

 

 

     

 

     

 

  DEBT INFORMATION  
                     

 

 

     

 

  LEGAL

TOTAL


MATURITY
    INTEREST
INDEBTEDNESS ($ IN 000's)  

 

PROPERTY NAME

  STATE  

CITY (CBSA)

  OWNERSHIP

SQUARE FEET


DATE
  RATE (1)
TYPE

TOTAL
OUR SHARE  

 

International Properties

 

 

                         

 

AUSTRIA

 

 

                             

1.

 

Parndorf Designer Outlet Phases 3 & 4

  Vienna   90.0%  

118,000

  05/25/22   (20)   1.90%   Fixed     107,489     96,740  

 

Subtotal Austria Square Footage

 

118,000

                             

 

CANADA

 
 
 
 
 

 

 
 
 

 

   
 
   
 
 

2.

 

Premium Outlet Collection Edmonton IA

  Edmonton, Canada   50.0%  

424,000

  11/10/21   (8)(23)   2.97%   Variable     83,483     41,749  

3.

 

Premium Outlets Montréal

  Montréal (Quebec)   50.0%  

366,500

  06/01/24   (23)   3.10%   Fixed     91,358     45,679  

4.

 

Toronto Premium Outlets

  Toronto (Ontario)   50.0%  

360,400

  06/01/22   (23)   3.13%   Fixed     129,424     64,712  

5.

 

Vancouver Designer Outlet

  Vancouver (British Columbia)   45.0%  

242,000

  06/19/21   (8)(14)   3.22%   Variable     83,821     37,719  

 

Subtotal Canada Square Footage

 

1,392,900

                             

 

FRANCE

 
 
 
 
 

 

 
 
 

 

   
 
   
 
 

6.

 

Provence Designer Outlet

  Miramas   90.0%  

269,000

  07/27/22   (8)(20)   2.50%   Variable     96,725     87,053  

 

Subtotal France Square Footage

 

269,000

                             

 

GERMANY

 
 
 
 
 

 

 
 
 

 

   
 
   
 
 

7.

 

Ochtrup Designer Outlet

  Ochtrup   70.5%  

191,500

  06/30/21   (20)   2.49%   Fixed     47,295     33,343  

 

Subtotal Germany Square Footage

 

191,500

                             

 

ITALY

 
 
 
 
 

 

 
 
 

 

   
 
   
 
 

8.

 

La Reggia Designer Outlet

  Marcianise (Naples)   90.0%  

288,000

  02/15/22   (20)   2.50%   Variable     153,391     138,052  

9.

 

Noventa Di Piave Designer Outlet

  Venice   90.0%  

324,000

  06/30/20   (20)   1.68%   Variable     128,518     115,666  

 

Subtotal Italy Square Footage

 

612,000

                             

 

JAPAN

 
 
 
 
 

 

 
 
 

 

   
 
   
 
 

10.

 

Ami Premium Outlets

  Ami (Tokyo)   40.0%  

315,000

  09/25/23   (25)   1.74%   Fixed     52,065     20,826  

11.

 

Gotemba Premium Outlets

  Gotemba City (Tokyo)   40.0%  

481,500

  (2)                          

12.

 

Kobe-Sanda Premium Outlets

  Kobe (Osaka)   40.0%  

441,000

  01/31/23   (25)   0.35%   Variable     30,029     12,012  

13.

 

Rinku Premium Outlets

  Izumisano (Osaka)   40.0%  

416,500

  07/31/22   (25)   0.33%   Variable     9,034     3,614  

14.

 

Sano Premium Outlets

  Sano (Tokyo)   40.0%  

390,800

  02/28/25   (25)   0.31%   Fixed     41,104     16,442  

15.

 

Sendai-Izumi Premium Outlets

  Izumi Park Town (Sendai)   40.0%  

164,200

  10/31/18   (25)   0.42%   Variable     1,717     687  

16.

 

Shisui Premium Outlets

  Shisui (Chiba)   40.0%  

365,900

  05/31/23   (25)   0.38%   Variable     25,296     10,118  

                      05/29/22   (25)   0.38%   Fixed     45,170     18,068  

17.

 

Toki Premium Outlets

  Toki (Nagoya)   40.0%  

367,700

  05/31/20   (25)   0.92%   Variable     5,621     2,249  

                      11/30/19   (25)   0.38%   Fixed     27,102     10,841  

18.

 

Tosu Premium Outlets

  Fukuoka (Kyushu)   40.0%  

290,400

  07/31/21   (25)   0.41%   Variable     14,725     5,890  

 

Subtotal Japan Square Footage

 

3,233,000

                             
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 44

Table of Contents

PROPERTY AND DEBT INFORMATION
As of June 30, 2018

 

 

     

 

          DEBT INFORMATION  
                     

 

 

     

 

  LEGAL
TOTAL
MATURITY
    INTEREST
INDEBTEDNESS ($ IN 000's)  

 

PROPERTY NAME

  STATE  

CITY (CBSA)

  OWNERSHIP
SQUARE FEET
DATE
  RATE (1)
TYPE

TOTAL
OUR SHARE  

 

KOREA

 
 
 
 
 

 

 
 
 

 

   
 
   
 
 

19.

 

Busan Premium Outlets

  Busan   50.0%   360,200   06/20/22   (26)   3.40%   Fixed     101,841     50,920  

20.

 

Paju Premium Outlets

  Paju (Seoul)   50.0%   442,900   03/27/20   (26)   3.69%   Fixed     64,066     32,033  

21.

 

Siheung Premium Outlets

  Siheung (Seoul)   50.0%   444,400   03/15/23   (26)   3.28%   Fixed     134,593     67,296  

22.

 

Yeoju Premium Outlets

  Yeoju (Seoul)   50.0%   551,600   05/23/21   (26)   3.78%   Fixed     75,465     37,732  

 

Subtotal South Korea Square Footage

  1,799,100                              

 

MALAYSIA

 
 
 
 
 

 

 
 
 

 

   
 
   
 
 

23.

 

Genting Highlands Premium Outlets

  Pahang (Kuala Lumpur)   50.0%   278,000   02/14/24   (27)   5.27%   Variable     28,137     14,068  

24.

 

Johor Premium Outlets

  Johor (Singapore)   50.0%   264,400   11/01/19   (27)   5.02%   Variable     3,122     1,561  

 

Subtotal Malaysia Square Footage

  542,400                              

 

MEXICO

 
 
 
 
 

 

 
 
 

 

   
 
   
 
 

25.

 

Premium Outlets Punta Norte

  Mexico City   50.0%   333,000   (2)                          

 

Subtotal Mexico Square Footage

  333,000                              

 

NETHERLANDS

 
 
 
 
 

 

 
 
 

 

   
 
   
 
 

26.

 

Roermond Designer Outlet Phases 2, 3 & 4

  Roermond      (28) 298,000   12/18/21   (20)   1.88%   Fixed     268,722     241,850  

                  12/07/20   (20)   1.40%   Variable     54,913     28,143  

27.

 

Rosada Designer Outlet

  Roosendaal   94.0%   247,500   02/25/24   (8)(20)   1.85%   Variable     68,787     64,660  

 

Subtotal Netherlands Square Footage

  545,500                              

 

UNITED KINGDOM

 
 
 
 
 

 

 
 
 

 

   
 
   
 
 

28.

 

Ashford Designer Outlet

  Kent   45.0%   183,000   02/22/22   (5)   2.62%   Variable     84,924     38,215  

 

Subtotal United Kingdom Square Footage

  183,000                              

 

 

 

     

 

                                     

 

TOTAL INTERNATIONAL SQUARE FOOTAGE (11)(29)

  9,219,400                              

 

 

 

     

 

                                     

 

TOTAL SQUARE FOOTAGE

  190,995,781                              

 

Other Secured Indebtedness:

             

(13)

           
240,123
   
120,061
 

 

 

 

     

 

                                     

 

TOTAL SECURED INDEBTEDNESS

                                $ 13,619,172  (6)

 

 

 

     

 

                                     

 

Our Share of Consolidated Mortgage Debt

                            $ 6,421,501  

 

 

 

     

 

                                     

 

Our Share of Joint Venture Mortgage Debt

                            $ 7,197,671  
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 45

Table of Contents

PROPERTY AND DEBT INFORMATION
As of June 30, 2018

 
DEBT INFORMATION  
     

UNSECURED INDEBTEDNESS:

 

MATURITY
DATE




INTEREST
RATE (1)


TYPE


INDEBTEDNESS
($ in 000's)
TOTAL
 

Global Commercial Paper - USD

    08/20/18  (12)   2.02%   Fixed     981,500  

Simon Property Group, LP (Sr. Notes)

    02/01/19     2.20%   Fixed     600,000  

Simon Property Group, LP (Sr. Notes)

    09/01/20     2.50%   Fixed     500,000  

Simon Property Group, LP (Euro Sr. Notes)

    10/02/20  (22)   2.38%   Fixed     876,270  

Simon Property Group, LP (Sr. Notes)

    03/01/21  (30)   3.87%   Fixed     900,000  

Simon Property Group, LP (Sr. Notes)

    07/15/21     2.50%   Fixed     550,000  

Simon Property Group, LP (Sr. Notes)

    12/01/21     4.13%   Fixed     700,000  

Simon Property Group, LP (Sr. Notes)

    01/30/22     2.35%   Fixed     550,000  

Simon Property Group, LP (Sr. Notes)

    03/15/22     3.38%   Fixed     600,000  

Simon Property Group, LP (Sr. Notes)

    06/15/22     2.63%   Fixed     600,000  

Revolving Credit Facility - Yen Currency

    06/30/22  (8)(19)(31)   0.78%   Variable     201,140  

Revolving Credit Facility - USD Currency

    06/30/22  (8)   2.87%   Variable     125,000  

Simon Property Group, LP (Euro Sr. Notes)

    11/18/22  (16)   1.38%   Fixed     876,270  

Simon Property Group, LP (Sr. Notes)

    02/01/23     2.75%   Fixed     500,000  

Simon Property Group, LP (Sr. Notes)

    06/01/23     2.75%   Fixed     600,000  

Simon Property Group, LP (Sr. Notes)

    02/01/24     3.75%   Fixed     600,000  

Simon Property Group, LP (Sr. Notes)

    10/01/24     3.38%   Fixed     900,000  

Simon Property Group, LP (Euro Sr. Notes)

    05/13/25  (9)   1.25%   Fixed     584,180  

Simon Property Group, LP (Sr. Notes)

    09/01/25     3.50%   Fixed     600,000  

Simon Property Group, LP (Sr. Notes)

    01/15/26     3.30%   Fixed     800,000  

Simon Property Group, LP (Sr. Notes)

    11/30/26     3.25%   Fixed     750,000  

Simon Property Group, LP (Sr. Notes)

    06/15/27     3.38%   Fixed     750,000  

Simon Property Group, LP (Sr. Notes)

    12/01/27     3.38%   Fixed     750,000  

Simon Property Group, LP (Sr. Notes)

    02/01/40     6.75%   Fixed     600,000  

Simon Property Group, LP (Sr. Notes)

    03/15/42     4.75%   Fixed     550,000  

Simon Property Group, LP (Sr. Notes)

    10/01/44     4.25%   Fixed     400,000  

Simon Property Group, LP (Sr. Notes)

    11/30/46     4.25%   Fixed     550,000  

Total Unsecured Indebtedness

                  $ 16,994,360  (18)
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 46

Table of Contents

PROPERTY AND DEBT INFORMATION
As of June 30, 2018

FOOTNOTES:
 
(1)
Variable rate debt interest rates are based on the following base rates as of June 30, 2018: 1M LIBOR at 2.09%; 1M EUR LIBOR at -.39%; 1M EURIBOR at -.37%; 3M EURIBOR at -.32%; 6M EURIBOR at -.27%; 3m GBP LIBOR at 0.67%; 1M YEN TIBOR at 0.05%; 6M YEN TIBOR at .13%; 1M YEN LIBOR at –0.07%; 1M CDOR at 1.67%; Cost of Funds rate at 3.52%.
(2)
Unencumbered asset.
(3)
This property is managed by a third party.
(4)
The Operating Partnership's direct and indirect interests in some joint venture properties are subject to preferences on distributions and/or capital allocation in favor of other partners or the Operating Partnership.
(5)
Amount shown in USD equivalent; GBP equivalent is 64.3 million.
(6)
Our share of total indebtedness includes a pro rata share of the mortgage debt on joint venture properties, including TMLP. To the extent total indebtedness is secured by a property, it is non-recourse to us, with the exception of approximately $201.0 million of payment guarantees provided by the Operating Partnership (of which $10.8 million is recoverable from our venture partner under the partnership agreement).
(7)
The Operating Partnership receives substantially all the economic benefit of the property due to a preference or advance.
(8)
Includes applicable extensions available at our option.
(9)
Amount shown in USD equivalent; Euro equivalent is 500.0 million.
(10)
The Operating Partnership owns a mortgage note that encumbers Pheasant Lane Mall that entitles it to 100% of the economics of this property.
(11)
Does not include any other spaces in joint ventures which are not listed above.
(12)
Reflects the latest maturity date and weighted average interest rate of all outstanding tranches of commercial paper at June 30, 2018.
(13)
Consists of six loans with interest rates ranging from 2.87% to 4.46% and maturities between 2019 and 2035.
(14)
Amount shown in USD equivalent; CAD equivalent is 110.1 million.
(15)
These three properties (which includes Calhoun Outlet Marketplace and Gaffney Outlet Marketplace) are secured by cross-collateralized and cross-defaulted mortgages.
(16)
Amount shown in USD equivalent; Euro equivalent is 750.0 million.
(17)
These two properties are secured by cross-collateralized and cross-defaulted mortgages.
(18)
Also represents our share of Total Unsecured Indebtedness.
(19)
Amounts shown in USD equivalent. Balance includes borrowings on multi-currency tranche of Yen 22.3 billion.
(20)
Amount shown in USD equivalent; Euro equivalent is 792.4 million.
(21)
Consists of eight encumbered properties with interest rates ranging from 3.41% to 7.32% and maturities between 2017 and 2026, of which two properties are held within TMLP.
(22)
Amount shown in USD equivalent; Euro equivalent is 750.0 million.
(23)
Amounts shown in USD equivalent; CAD equivalent is 399.7 million.
(24)
Includes office space of 2,086,820 square feet including the following centers with more than 20,000 square feet of office space:
Circle Centre - 130,635 sq. ft.   Oxford Valley Mall - 137,223 sq. ft.
Copley Place - 893,670 sq. ft.   Plaza Carolina - 27,398 sq. ft.
Domain, The - 156,240 sq. ft.   Southdale Center - 37,523 sq. ft.
Fashion Centre at Pentagon City - 169,089 sq. ft.   Stanford Shopping Center - 39,474 sq. ft.
Firewheel Town Center - 72,421 sq. ft.   The Shops at Clearfork - 143,275 sq. ft.
Menlo Park Mall - 74,440 sq. ft.    
(25)
Amounts shown in USD equivalent; Yen equivalent is 27.9 billion.
(26)
Amounts shown in USD equivalent; Won equivalent is 419.0 billion.
(27)
Amounts shown in USD equivalent; Ringgit equivalent is 126.0 million.
(28)
The Company owns a 90.0% interest in Phases 2 & 3 and a 46.1% interest in Phase 4.
(29)
Does not include Klépierre.
(30)
Through a cross currency swap agreement, $150.0 million was swapped to Euro-equivalent 121.6 million at 1.37%, resulting in an interest rate essentially fixed at the all-in rate presented.
(31)
All outstanding borrowings were repaid on July 10, 2018.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 47

Table of Contents

NON-GAAP PRO-RATA FINANCIAL INFORMATION

The following pro-rata financial information is not, and is not intended to be, a presentation in accordance with GAAP. The non-GAAP pro-rata financial information aggregates our proportionate economic ownership of each asset in our property portfolio that we do not wholly own. The amounts in the column labeled "Our Share of Joint Ventures" were derived on a property-by-property or entity-by-entity basis by applying to each line item the ownership percentage interest used to arrive at our share of the net operations for the period consistent with the application of the equity method of accounting to each of our unconsolidated joint ventures. A similar calculation was performed for the amounts in the column labeled "Noncontrolling Interests," which represents the share of consolidated assets and net income or loss attributable to any noncontrolling interest.

We do not control the unconsolidated joint ventures and the presentations of the assets and liabilities and revenues and expenses do not represent our legal claim to such items. The operating agreements of the unconsolidated joint ventures generally provide that partners may receive cash distributions (1) to the extent there is available cash from operations, (2) upon a capital event, such as a refinancing or sale or (3) upon liquidation of the venture. The amount of cash each partner receives is based upon specific provisions of each operating agreement and varies depending on factors including the amount of capital contributed by each partner and whether any contributions are entitled to priority distributions. Upon liquidation of the joint venture and after all liabilities, priority distributions and initial equity contributions have been repaid, the partners generally would be entitled to any residual cash remaining based on their respective legal ownership percentages.

We provide pro-rata financial information because we believe it assists investors and analysts in estimating our economic interest in our unconsolidated joint ventures when read in conjunction with the Company's reported results under GAAP. The presentation of pro-rata financial information has limitations as an analytical tool. Some of these limitations include:

The amounts shown on the individual line items were derived by applying our overall economic ownership interest percentage determined when applying the equity method of accounting and do not necessarily represent our legal claim to the assets and liabilities, or the revenues and expenses; and

Other companies in our industry may calculate their pro-rata interest differently than we do, limiting the usefulness as a comparative measure.

Because of these limitations, the pro-rata financial information should not be considered in isolation or as a substitute for our financial statements as reported under GAAP. We compensate for these limitations by relying primarily on our GAAP results and using the pro-rata financial information only supplementally.

 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 48

Table of Contents

NON-GAAP PRO-RATA FINANCIAL INFORMATION
(In thousands)

 
FOR THE THREE MONTHS ENDED
JUNE 30, 2018
 

FOR THE THREE MONTHS ENDED
JUNE 30, 2017
 
   

 

NONCONTROLLING
INTERESTS(1)




OUR
SHARE OF
JOINT VENTURES
 

NONCONTROLLING
INTERESTS(1)




OUR
SHARE OF
JOINT VENTURES
 

REVENUE:

                         

Minimum rent

  $ (7,552)   $ 228,990   $ (7,340)   $ 222,110  

Overage rent

    (16)     22,306     (25)     20,038  

Tenant reimbursements

    (3,217)     104,567     (3,152)     102,099  

Management fees and other revenues

                 

Other income

    (427)     38,167     (311)     34,604  

Total revenue

    (11,212)     394,030     (10,828)     378,851  

EXPENSES:

                         

Property operating

    (1,862)     61,819     (1,754)     59,487  

Depreciation and amortization

    (3,904)     100,504     (3,793)     100,266  

Real estate taxes

    (577)     32,191     (556)     30,791  

Repairs and maintenance

    (404)     9,568     (319)     9,608  

Advertising and promotion

    (1,089)     10,048     (1,102)     10,387  

Provision for credit losses

    (37)     2,070     (62)     1,370  

Home and regional office costs

                 

General and administrative

                 

Other

    (1,248)     23,041     (1,344)     20,426  

Total operating expenses

    (9,121)     239,241     (8,930)     232,335  

OPERATING INCOME

    (2,091)     154,789     (1,898)     146,516  

Interest expense

    1,985     (84,891)     1,843     (69,728)  

Loss on extinguishment of debt

                 

Income and other taxes

                 

Income from unconsolidated entities

    (173)     (69,898)     (19)     (76,788)  

Gain upon acquisition of controlling interests, sale or disposal of, or recovery

                         

on, assets and interests in unconsolidated entities and impairment, net

                 

CONSOLIDATED NET INCOME

    (279)         (74)      

Net income attributable to noncontrolling interests

    (279)         (74)      

Preferred dividends

                 

NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

  $   $   $   $  
(1)
Represents our venture partners' share of operations from consolidated properties.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 49

Table of Contents

NON-GAAP PRO-RATA FINANCIAL INFORMATION
(In thousands)

 
FOR THE SIX MONTHS ENDED
JUNE 30, 2018
 

FOR THE SIX MONTHS ENDED
JUNE 30, 2017
 
   

 

NONCONTROLLING
INTERESTS(1)




OUR
SHARE OF
JOINT VENTURES
 

NONCONTROLLING
INTERESTS(1)




OUR
SHARE OF
JOINT VENTURES
 

REVENUE:

                         

Minimum rent

  $ (15,102)   $ 453,692   $ (13,805)   $ 435,794  

Overage rent

    (56)     47,843     (55)     41,857  

Tenant reimbursements

    (6,551)     211,049     (6,129)     205,806  

Management fees and other revenues

                 

Other income

    (877)     78,047     (561)     65,002  

Total revenue

    (22,586)     790,631     (20,550)     748,459  

EXPENSES:

                         

Property operating

    (3,913)     126,835     (3,329)     119,006  

Depreciation and amortization

    (7,955)     197,914     (7,273)     196,157  

Real estate taxes

    (1,187)     64,111     (1,157)     62,068  

Repairs and maintenance

    (799)     20,454     (500)     19,229  

Advertising and promotion

    (2,162)     21,432     (1,723)     20,840  

Provision for credit losses

    (100)     4,618     (115)     3,180  

Home and regional office costs

                 

General and administrative

                 

Other

    (2,720)     45,348     (2,500)     39,582  

Total operating expenses

    (18,836)     480,712     (16,597)     460,062  

OPERATING INCOME

    (3,750)     309,919     (3,953)     288,397  

Interest expense

    3,804     (156,564)     4,054     (137,088)  

Loss on extinguishment of debt

                 

Income and other taxes

                 

Income from unconsolidated entities

    (240)     (153,355)     69     (151,309)  

Gain upon acquisition of controlling interests, sale or disposal of, or recovery

                         

on, assets and interests in unconsolidated entities and impairment, net

                 

CONSOLIDATED NET INCOME

    (186)         170      

Net income attributable to noncontrolling interests

    (186)         170      

Preferred dividends

                 

NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

  $   $   $   $  
(1)
Represents our venture partners' share of operations from consolidated properties.
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 50

Table of Contents

NON-GAAP PRO-RATA FINANCIAL INFORMATION
(In thousands)

  AS OF JUNE 30, 2018  
AS OF JUNE 30, 2017  
   

 

NONCONTROLLING
INTERESTS




OUR
SHARE OF
JOINT VENTURES
 

NONCONTROLLING
INTERESTS




OUR
SHARE OF
JOINT VENTURES
 

ASSETS:

                         

Investment properties, at cost

  $ (399,737)   $ 10,764,013   $ (380,426)   $ 10,580,751  

Less - accumulated depreciation

    (83,660)     3,133,251     (71,348)     2,944,962  

    (316,077)     7,630,762     (309,078)     7,635,789  

Cash and cash equivalents

    (15,565)     445,157     (11,388)     391,047  

Tenant receivables and accrued revenue, net

    (6,672)     182,456     (6,429)     165,420  

Investment in unconsolidated entities, at equity

    (22,259)     (2,280,574)     (23,255)     (2,297,856)  

Investment in Klépierre, at equity

                 

Deferred costs and other assets

    (39,454)     246,835     (35,559)     205,150  

Total assets

  $ (400,027)   $ 6,224,636   $ (385,709)   $ 6,099,550  

LIABILITIES:

                         

Mortgages and unsecured indebtedness

  $ (160,519)   $ 7,175,646   $ (159,572)   $ 6,888,972  

Accounts payable, accrued expenses, intangibles, and deferred revenues

    (16,598)     401,090     (15,057)     424,069  

Cash distributions and losses in unconsolidated entities, at equity

        (1,531,136)         (1,370,333)  

Other liabilities

    (46,814)     179,036     (47,975)     156,842  

Total liabilities

    (223,931)     6,224,636     (222,604)     6,099,550  

Commitments and contingencies

                         

Limited partners' preferred interest in the Operating Partnership

    (172,464)         (158,842)      

EQUITY:

                         

Stockholders' equity

                         

Capital stock

                         

Series J 83/8% cumulative redeemable preferred stock

                 

Common stock, $.0001 par value

                 

Class B common stock, $.0001 par value

                 

Capital in excess of par value

                 

Accumulated deficit

                 

Accumulated other comprehensive income (loss)

                 

Common stock held in treasury at cost

                 

Total stockholders' equity

                 

Noncontrolling interests

    (3,632)         (4,263)      

Total equity

    (3,632)         (4,263)      

Total liabilities and equity

  $ (400,027)   $ 6,224,636   $ (385,709)   $ 6,099,550  
 
2Q 2018 SUPPLEMENTAL 2Q 2018 SUPPLEMENTAL 51