Simon Property Group (SPG) Q2 2024 earnings summary

Executive summary

• Achieved record real estate NOI for Q2 2024, driven by increased leasing, occupancy, shopper traffic, and retail sales volumes.

• Diluted EPS for the first six months of 2024 was $3.76, up $0.89 year-over-year, supported by improved operations and a $414.8M pre-tax gain from the sale of Authentic Brands Group.

• Strong demand for space across all property types, with robust leasing momentum and a healthy pipeline of signed but not yet open leases.

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

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

Financial highlights

• Q2 2024 net income attributable to common stockholders was $493.5M ($1.51 per diluted share), up from $486.3M ($1.49) in Q2 2023; six-month net income was $1.225B ($3.76 per diluted share), including $306.3M in after-tax net gains from asset sales.

• Q2 2024 FFO was $1.09B ($2.90/share), up from $1.077B ($2.88/share) in Q2 2023; six-month FFO was $2.42B ($6.46/share).

• Real Estate FFO per diluted share increased 4.3% year-over-year to $2.93 in Q2 2024; $5.84 for six months.

• Domestic NOI increased 5.2% year-over-year; portfolio NOI (including international) grew 4.8% in Q2 and 4.4% for the first half of 2024.

• Malls and outlet occupancy reached 95.6%, up 0.9% year-over-year; Mills occupancy at 98.2%.

• Average base minimum rent for malls/outlets rose 3% year-over-year to $57.94 per sq. ft.; Mills up 3.9%.

• Retailer sales per sq ft for malls and premium outlets was $741 in Q2 2024.

• Occupancy cost at quarter-end was 12.7%.

Outlook and guidance

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

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

• Expect year-end occupancy north of 96%.

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