e6245b9fecb04f00ec0d5d5f86326d0939d354822f036eaa11c1d555503b50a7

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from Debt (USD, thousands)

Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

a7f4532eb93e36c0043a1998fe08de10c65402d5e6303c0a069c62652e6e9ded

Simon Property Group, Inc. (SPG) operates as a self-administered and self-managed real estate investment trust (REIT) primarily involved in owning, developing, and managing premier shopping, dining, entertainment, and mixed-use destinations **[0001558370-24-014946_spg-20240930x10q.htm:44]**. The company's portfolio includes malls, Premium Outlets®, The Mills®, lifestyle centers, and other retail properties, with a significant presence in the United States and international markets such as Asia, Europe, and Canada **[0001558370-24-014946_spg-20240930x10q.htm:44]**. SPG generates the majority of its lease income from retail tenants through fixed minimum lease considerations, fixed common area maintenance reimbursements, and variable lease considerations based on tenants' sales **[0001558370-24-014946_spg-20240930x10q.htm:44]**. Additionally, SPG engages in redevelopment and expansion projects and invests in retail operations and e-commerce ventures **[0001558370-24-014946_spg-20240930x10q.htm:44]**.

1. **Retail Properties** - Owns and manages a diverse portfolio of malls, Premium Outlets®, The Mills®, and lifestyle centers, providing shopping, dining, and entertainment experiences.
2. **Redevelopment and Expansion Projects** - Enhances property value and profitability by adding anchors and big box tenants to existing properties.
3. **Retail Operations and E-commerce Ventures** - Invests in retail operations and e-commerce ventures, including J.C. Penney, SPARC Group, and Rue Gilt Groupe.
4. **International Investments** - Holds a 22.4% equity stake in Klépierre SA, a European shopping center company, expanding its international market presence.

877b867a5322b74c455ba4de2472f47042094529e895822fc64729d474ee479f

| Metric [USD Thousands] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Lease Income           | N/A     | **1,248,185**  **[0001104659-23-055018_tm2312801d2_ex99-1.htm:4]**  | N/A     | N/A     | N/A     | **1,302,671**  **[0001104659-24-057440_tm2411496d3_ex99-1.htm:3]**  | N/A     | **1,339,824**  **[0001558370-24-014946_spg-20240930x10q.htm:11]**  |
| Management Fees and Other Revenues | N/A     | **28,949**  **[0001104659-23-055018_tm2312801d2_ex99-1.htm:4]**  | N/A     | N/A     | N/A     | **29,455**  **[0001104659-24-057440_tm2411496d3_ex99-1.htm:3]**  | N/A     | **33,461**  **[0001558370-24-014946_spg-20240930x10q.htm:11]**  |
| Other Income           | N/A     | **73,715**  **[0001104659-23-055018_tm2312801d2_ex99-1.htm:4]**  | N/A     | N/A     | N/A     | **110,464**  **[0001104659-24-057440_tm2411496d3_ex99-1.htm:3]**  | N/A     | **107,425**  **[0001558370-24-014946_spg-20240930x10q.htm:11]**  |
| Total Revenue          | N/A     | **1,350,849**  **[0001104659-23-055018_tm2312801d2_ex99-1.htm:4]**  | **1,369,601**  **[0001104659-23-086786_tm2321502d2_ex99-1.htm:4]**  | **1,410,948**  **[0001104659-23-112561_tm2328198d2_ex99-1.htm:13]**  | **1,527,438**  **[0001104659-24-010603_tm243752d2_ex99-1.htm:13]**  | **1,442,590**  **[0001104659-24-057440_tm2411496d3_ex99-1.htm:3]**  | **1,458,266**  **[0001104659-24-085817_tm2419636d2_ex99-1.htm:4]**  | **1,480,710**  **[0001558370-24-014946_spg-20240930x10q.htm:11]**  |

34da180f37ec4c83634dde0e49dbdf7f0e4b461a3727069df65ed03354d46191

| Metric (Unit)                        | Q4 2022          | Q1 2023          | Q2 2023          | Q3 2023          | Q4 2023          | Q1 2024          | Q2 2024          | Q3 2024          |
|--------------------------------------|------------------|------------------|------------------|------------------|------------------|------------------|------------------|------------------|
| Average Base Minimum Rent (USD/Sq Ft)| $55.13  **[0001104659-23-011182_tm233979d2_ex99-1.htm:19]**      | $55.84  **[0001104659-23-055018_tm2312801d2_ex99-1.htm:16]** **[0001104659-23-055018_tm2312801d2_ex99-1.htm:0]** | $56.27  **[0001104659-23-086786_tm2321502d2_ex99-1.htm:18]**      | $56.41  **[0001104659-23-112561_tm2328198d2_ex99-1.htm:18]**      | $56.82  **[0001104659-24-010603_tm243752d2_ex99-1.htm:18]**      | $57.53  **[0001104659-24-057440_tm2411496d3_ex99-1.htm:16]**      | $57.94  **[0001104659-24-085817_tm2419636d2_ex99-1.htm:18]**      | $57.71  **[0001558370-24-014946_spg-20240930x10q.htm:47]** **[0001558370-24-014946_spg-20240930x10q.htm:46]** |
| Square Footage of Leases Signed (Million Sq Ft) | 14+  **[0001104659-23-036085_tm231787-2_def14a.htm:48]**  |                  | 4.3  **[SPG_3362820_2]**      | 4.3  **[SPG_3362820_2]**       | 3.4  **[SPG_3371933_2]**      | 18+  **[0001558370-24-004080_spg-20240508xdef14a.htm:3]**       | 9.3  **[0001558370-24-014946_spg-20240930x10q.htm:47]**        | 9.3  **[0001558370-24-014946_spg-20240930x10q.htm:47]**        |

e4f9363c8e61f92bc5e783da5062e6c5ba816a7e65427a90ffb734fd8da1cd67

1. Given that occupancy rates are approaching potential ceilings, how do you plan to drive further NOI growth, particularly in an environment where economic conditions may affect tenant demand?  **[SPG_3396446_8]** 

2. With the lower-income consumer under pressure due to inflation, how are you adjusting your strategies to mitigate the impact on discretionary spending in your properties, and what measures are you taking to support tenant sales?  **[SPG_3396446_3]** 

3. You mentioned strong and steady demand for space, but are you seeing any signs of tenants pausing or taking longer to sign new leases due to macroeconomic concerns, and how might this affect your leasing pipeline?  **[SPG_3396446_4]** 

4. Considering your current cash position and upcoming debt maturities, how do you plan to balance maintaining liquidity with potential investment opportunities, and are you prepared to alter your financing strategy if interest rates continue to fluctuate?  **[SPG_3396446_9]** 

5. Despite stating that you're "out of the portfolio business" and not engaging in external acquisitions recently, how do you intend to grow your portfolio and widen the gap between you and your competitors without pursuing significant external growth opportunities?  **[SPG_3396446_10]** 

c6d256e06c56a3e9ddfddc098a4d3fd9da9c4a95a9e738fdf1d19c0b7e25a715

Average Base Minimum Rent (USD/Sq Ft)

Square Footage of Leases Signed (Million Sq Ft)

84a6f7895e76fb6bb7695ed4e7f4299932cd01bc85fd19fcab79d0429e2648f6

Q3 2024

Q2 2024

Q1 2024

Q4 2023

Q3 2023

Q2 2023

Q1 2023

Q4 2022

6bfa8c146bf84194818116155763108dea5b96c1f4553310135c70d81f9d4798

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- **Simon Property Group** has a history of exceeding its conservative guidance. While they have guided to at least **3%** domestic property NOI growth for 2025, they have consistently achieved growth above **4%** in past years, indicating potential for outperformance.  **[SPG_3414349_5]** **[SPG_3414349_6]** **[SPG_3414349_10]**
- The company sees significant upside potential in occupancy levels, aiming to return to their record-high occupancy of **97.1%** from 2014. Achieving this would drive further revenue and NOI growth.  **[SPG_3414349_5]** **[SPG_3414349_10]**
- **SPG** is investing in redevelopment and re-tenanting opportunities in their **B malls**, where they are achieving returns of around **12%**, higher than the **8–9%** returns in **A projects**. This indicates strong potential for value creation and NAV accretion.  **[SPG_3414349_17]**

83774f6de83ff550a669bf0e296d6cad1ace81164d56236cf8c7c481a68fe30a

- The company anticipates **increased net interest expense of between $0.25 to $0.30 per share in 2025** due to current market interest rates and projected cash balances, which may negatively impact funds from operations (FFO).  **[SPG_3414349_2]**
- The performance of **Catalyst Brands is uncertain**, with expectations of roughly **breakeven FFO in fiscal 2025** due to potential restructuring costs, which may not contribute positively to earnings in the near term.  **[SPG_3414349_2]**
- A **higher percentage of leases (about 5%) are still month-to-month** compared to pre-COVID levels, indicating potential leasing uncertainty and instability in occupancy rates.  **[SPG_3414349_11]**

380e568909e720b492631995b8e31ad1babc8d0d60addea6da24488709df4795

1. **2025 Guidance and Underlying Growth**  
   **Q:** Is strong guidance due to internal growth?  
   **A:** David Simon explained that the 2025 guidance of **$12.40 to $12.65** per share excludes Catalyst and that they expect to grow the portfolio by at least **3%**, aiming to beat that target through leasing, operational focus, and expanding the portfolio. This indicates that the business is returning to pre-pandemic levels.  **[SPG_3414349_10]** 

2. **NOI Growth Expectations**  
   **Q:** Why did NOI growth drop from 4% to 3%?  
   **A:** Brian McDade stated they have historically guided to at least **3%** NOI growth and then exceeded it. The lower expectation accounts for conservative budgeting with flat sales, potential downtime from tenant mix changes, and consideration of historical bad debt levels.  **[SPG_3414349_6]** 

3. **Investing in B Malls**  
   **Q:** How will you invest in B malls for returns?  
   **A:** David Simon discussed plans to reinvest in B malls by renovating properties, adding new tenants, and improving the tenant mix. For example, at Smith Haven, they expect a **12%** return over the next couple of years. The higher returns are due to investing in empty spaces with no existing income, making the investments NAV accretive.  **[SPG_3414349_9]** **[SPG_3414349_17]** 

4. **Kering Acquisition Impact**  
   **Q:** What are details of the Kering acquisition in Italy?  
   **A:** David Simon shared that they acquired top assets in Italy at the right price. The acquisition is accretive to NAV and earnings, with Kering remaining a long-term tenant. Assets in Italy typically have higher cap rates than comparable U.S. assets.  **[SPG_3414349_8]** **[SPG_3414349_14]** 

5. **Capital Allocation After Kering**  
   **Q:** How are you balancing acquisitions with other uses?  
   **A:** David Simon said there are no big deals planned that would affect leverage. They plan to focus on high-quality transactions, redevelopment projects, stock buybacks, and development—effectively doing a bit of everything.  **[SPG_3414349_16]** 

6. **Consumer Trends**  
   **Q:** How do you feel about the consumer now?  
   **A:** David Simon is cautious about the European consumer and nervous about the lower-end U.S. consumer. However, he is bullish on the upper to high-end U.S. consumer.  **[SPG_3414349_18]** 

7. **Tariff Impact and De Minimis Rule**  
   **Q:** What is the potential impact of tariffs and de minimis changes?  
   **A:** David Simon noted that tariffs have minimal impact as retailers have moved production out of China. The more material issue is the de minimis rule; eliminating it would benefit domestic retailers by leveling the playing field against companies like Temu.  **[SPG_3414349_7]** 

8. **Leasing and Occupancy**  
   **Q:** How will month-to-month leases evolve over time?  
   **A:** Brian McDade said they expect the percentage of month-to-month leases to decrease as renewals are processed. David Simon added they're ahead of where they were last year on renewals.  **[SPG_3414349_11]** 

9. **Mixed-Use Projects**  
   **Q:** What are the plans for mixed-use projects in 2025?  
   **A:** David Simon outlined plans to spend **$400 to $500 million** on mixed-use projects, all in joint ventures. Projects include residential, hotels, and office spaces at locations like Roosevelt Field, Brea, Clearfork, and The Domain.  **[SPG_3414349_12]** 

10. **Catalyst and OPI Impact**  
    **Q:** What is the impact of Catalyst and OPI on guidance?  
    **A:** David Simon clarified that the guidance excludes Catalyst, and investments in OPI are small. Catalyst will have positive EBITDA but is not included in the guidance of **$12.40 to $12.65** per share.  **[SPG_3414349_10]** 

11. **Outlet vs. Mall Performance**  
    **Q:** Any performance differences between outlets and malls?  
    **A:** Brian McDade stated that all platforms performed well, with outlets and Mills slightly outperforming due to their value orientation. They have not yet seen any impact from the strong dollar on tourist centers.  **[SPG_3414349_19]** 

12. **Joint Venture Structures**  
    **Q:** What is Simon's ownership in mixed-use JVs?  
    **A:** David Simon said they are usually **50-50** partners in these joint ventures.  **[SPG_3414349_13]** 

13. **Operations Across Asset Classes**  
    **Q:** Is focus only on malls or across the portfolio?  
    **A:** David Simon emphasized that reenergizing efforts are across the entire domestic portfolio, including outlets and Mills, not just malls.  **[SPG_3414349_19]** 

14. **Impact of Strong Dollar**  
    **Q:** Is the strong dollar affecting tourist centers?  
    **A:** Brian McDade indicated they have not seen any real-time impact yet, but continued dollar strength could affect earnings translations over the year.  **[SPG_3414349_19]** 

15. **Tariffs and Retailer Impact**  
    **Q:** How are tariffs impacting retailers?  
    **A:** David Simon explained that retailers have minimized China's sourcing, so tariffs have minimal effect. Eliminating the de minimis rule is more significant and could benefit domestic retailers.  **[SPG_3414349_7]** 

dfbb4e150322402d867344e64d33966c7c488f1b69a0aa27a593745f590fe90b

**Annual guidance for FY 2025:**
- **Real Estate FFO Guidance**: $12.40 to $12.65  **[SPG_3414349_3]**  (lowered from $12.80 to $12.90  **[SPG_3405479_3]** )  
- **Domestic Property NOI Growth**: at least 3%  **[SPG_3414349_3]**  (no prior guidance)  
- **Net Interest Expense**: increase of $0.25 to $0.30 per share  **[SPG_3414349_3]**  (no prior guidance)  
- **Diluted Share Count**: approximately 377 million shares and units outstanding  **[SPG_3414349_3]**  (no prior guidance)  
- **Catalyst Brands Contribution**: expected to generate positive EBITDA in fiscal 2025 and roughly breakeven FFO  **[SPG_3414349_3]**  (no prior guidance)  

301dd3bc7d5462039440c856495a006ac5f8ed408e29403cfe4186d69a163b03

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Full Year 2024 Guidance Range**: **$12.80 to $12.90 per share**, compared to **$12.51 last year**. This represents an increase of **$0.05 at the bottom end of the range** and **$0.02 at the midpoint**. The guidance reflects overcoming approximately **$0.15 per share** from certain retailer restructurings, lower lease settlement, and land sales income this year  **[SPG_3396446_2]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Full Year Guidance for 2024**: Increased to **$12.75 to $12.90 per share**, compared to **$12.51** last year. This represents an increase of **$0.90 at the bottom end of the range** and **$0.85 at the midpoint**  **[SPG_3386713_3]** .
  - **Same-Store Guidance**: At least **3%** for the year. Achieved **3.7%** in the first quarter, but no quarterly updates provided  **[SPG_3386713_6]** .
  - **FFO Contribution from OPI**: Expected to be around breakeven for the year, compared to initial guidance of **$0.10 to $0.15**  **[SPG_3386713_2]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  - **Funds From Operations (FFO) Guidance**: **$11.85 to $12.10 per share**  **[SPG_3371933_2]** .
  - **Domestic Property Net Operating Income (NOI) Growth**: At least **3%**  **[SPG_3371933_2]** .
  - **Increased Net Interest Expense**: Approximately **$0.25 to $0.30 per share** compared to 2023  **[SPG_3371933_2]** .
  - **Contribution from Other Platform Investments**: Approximately **$0.10 to $0.15 per share**  **[SPG_3371933_2]** .
  - **No Significant Acquisition or Disposition Activity**: Assumed in the guidance  **[SPG_3371933_2]** .
  - **Current Diluted Share Count**: Approximately **374 million shares**  **[SPG_3371933_2]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not contain information about the Q3 2024 earnings call for SPG. Therefore, I cannot provide the guidance metrics for that period.

402afe78cc1cd9e685bd698ee8ac66b9e409ee64f1cdcc8511577bd761e45ba0

| Name             | Position                                      | Start Date | Short Bio                                                                                                                                                                                                 |
|------------------|-----------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| David Simon      | Chairman, CEO, and President                  | 1993       | **David Simon** has been with Simon Property Group since its incorporation in 1993, serving as a director since that time. He became the CEO in **1995** and has served as Chairman of the Board since **2007**. He took on the role of President in **February 2019**. Before joining Simon Property Group, Mr. Simon was an investment banker specializing in mergers and acquisitions and leveraged buyouts from 1985 to 1990. He holds a B.S. from Indiana University and an MBA from Columbia University's Graduate School of Business  **[0001558370-24-004080_spg-20240508xdef14a.htm:32]** **[0001558370-24-004080_spg-20240508xdef14a.htm:26]** . |
| Brian J. McDade  | Executive Vice President and CFO              | 2004       | **Brian J. McDade** has been with Simon or a predecessor entity since **2004**. He began his role as Director of Capital Markets in **2007**, was promoted to Senior Vice President of Capital Markets in **2013**, and became Treasurer in **2014**. He was promoted to his current position as Executive Vice President and Chief Financial Officer in **2018**  **[0001558370-24-004080_spg-20240508xdef14a.htm:32]** . |
| Steven E. Fivel  | General Counsel and Secretary                 | 2011       | **Steven E. Fivel** rejoined Simon in 2011 as Assistant General Counsel and Assistant Secretary. He was promoted to General Counsel and Secretary in 2017. Prior to this, he served as Executive Vice President, General Counsel, and Secretary of Brightpoint, Inc.  **[0001558370-24-004080_spg-20240508xdef14a.htm:33]** . |
| John Rulli       | Chief Administrative Officer                  | 1988       | **John Rulli** joined Melvin Simon & Associates, Inc. (MSA) in **1988** and has held various positions with MSA and Simon thereafter. He became Chief Administrative Officer in **2007** and was promoted to Senior Executive Vice President in **2011**  **[0001558370-24-004080_spg-20240508xdef14a.htm:33]** . |
| Adam J. Reuille  | Senior Vice President and Chief Accounting Officer | 2009       | **Adam J. Reuille** joined the company in **2009** and was promoted to his current position in **2018**. Prior to this role, he served as Simon's Vice President and Corporate Controller. Mr. Reuille holds a B.S. from Indiana University and is a Certified Public Accountant  **[0001558370-24-004080_spg-20240508xdef14a.htm:33]** . |
| Stefan M. Selig  | Member of the Board of Directors              | 2017       | **Stefan M. Selig** has been a director at Simon Property Group since **2017**. He is a member of the Audit Committee and the Compensation and Human Capital Committee. Mr. Selig is the founder of BridgePark Advisors LLC, a strategic advisory firm. He has extensive experience in investment banking and government economic policy  **[0001558370-24-004080_spg-20240508xdef14a.htm:23]** **[0001104659-23-036085_tm231787-2_def14a.htm:28]** . |
| Peggy Fang Roe   | Member of the Board of Directors              | 2021       | **Peggy Fang Roe** has been a Director at Simon Property Group since **2021**. She is a member of the Governance and Nominating Committee. In addition to her role at SPG, she serves as Executive Vice President and Chief Customer Officer for Marriott International, a position she has held since 2023. Roe has extensive experience in globalization, leadership, and management  **[0001558370-24-004080_spg-20240508xdef14a.htm:23]** **[0001104659-23-036085_tm231787-2_def14a.htm:27]** . |

ebf3ee90d94a57dd3bb1346d11c7a3e6ddc6922d3c3ce19d7d5d30ad6ba48b9f

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | February 8, 2024  **[0001558370-24-014946_spg-20240930x10q.htm:60]** **[0001558370-24-014946_spg-20240930x10q.htm:69]**  |
| End Date/Duration        | February 8, 2026  **[0001558370-24-014946_spg-20240930x10q.htm:60]** **[0001558370-24-014946_spg-20240930x10q.htm:69]**  |
| Total additional amount  | $2.0 billion  **[0001558370-24-014946_spg-20240930x10q.htm:60]** **[0001558370-24-014946_spg-20240930x10q.htm:69]**  |
| Remaining authorization  | $2.0 billion  **[0001558370-24-014946_spg-20240930x10q.htm:60]** **[0001558370-24-014946_spg-20240930x10q.htm:69]**  |
| Details                  | The program aims to repurchase stock due to perceived undervaluation, described as \"wildly accretive\".  **[0001558370-24-014946_spg-20240930x10q.htm:60]** **[0001558370-24-014946_spg-20240930x10q.htm:35]** **[SPG_3362820_9]** **[SPG_322252_9]**  |

4142678c28ee5a75a663379de5a0cf383be9e232f5eb8ee8eeb6f6823f435327

Minimum Rent

Overage Rent

Tenant Reimbursements

Management Fees and Other

Other Income

Lease Income

Total Revenue

8ad4124ac67f4b4e11eeb2503ed5ed813ab30480cf7499fab322e370aa821871

Total Revenue (USD, thousands)

Cost of Goods Sold (COGS) (USD, thousands)

Selling, General, and Administrative Expenses (SG&A) (USD, thousands)

Research and Development (R&D) (USD, thousands)

Depreciation and Amortization (D&A) (USD, thousands)

Interest Expense (USD, thousands)

Operating Income (EBIT) (USD, thousands)

Net Income (USD, thousands)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

b7c767ca6578f4708daa2829f1f056db58d5813d03b1fb638d60ed3cd4618208

**Annual guidance for FY 2024:**
- **FFO Guidance**: $12.80 to $12.90 per share  **[SPG_3405479_3]**  (no change from prior guidance  **[SPG_3396446_2]** )  
- **Dividend**: $2.10 per share  **[SPG_3405479_3]**  (no prior guidance)

bd1c328eb000a210317bd90e1ae2bf6158ec3a8ff6b3be8491d8016de219f11b

973d8f6a4e71386a784d2cf045439551a72f0c35d3f399a882466f79ec96a5df

7614c0fccd324c7b6224517497893f4f71793fa780fa138131a4fa0deb62ee13

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2002  **[0001558370-24-001532_spg-20231231x10k.htm:113] [0001558370-24-001532_spg-20231231x10k.htm:117]**  | Present  | Current auditor   |

e972d0250c870dda5562dd7a9c46e43a6740ae3825781b8b0150d1ade27aafb6

- Total Revenue: $1,480.71 million (+5% YoY)  **[0001558370-23-017324_spg-20230930x10q.htm:5]** **[0001558370-23-017324_spg-20230930x10q.htm:11]** **[0001558370-24-014946_spg-20240930x10q.htm:5]**   
- Operating Income (EBIT): $767.77 million (+11% YoY)  **[0001558370-23-017324_spg-20230930x10q.htm:5]** **[0001558370-23-017324_spg-20230930x10q.htm:11]** **[0001558370-24-014946_spg-20240930x10q.htm:5]**   
- Net Income: $546.67 million (−8% YoY)  **[0001558370-23-017324_spg-20230930x10q.htm:5]** **[0001558370-23-017324_spg-20230930x10q.htm:11]** **[0001558370-24-014946_spg-20240930x10q.htm:5]**   
- Diluted EPS: $1.46 (−19% YoY)  **[0001558370-23-017324_spg-20230930x10q.htm:5]** **[0001558370-23-017324_spg-20230930x10q.htm:11]** **[0001558370-24-014946_spg-20240930x10q.htm:5]**   
- Interest Expense: $226.42 million (+7% YoY)  **[0001558370-23-017324_spg-20230930x10q.htm:5]** **[0001558370-23-017324_spg-20230930x10q.htm:11]** **[0001558370-24-014946_spg-20240930x10q.htm:5]**   
- Capital Expenditures: $186.37 million (−18% YoY)  **[0001558370-23-017324_spg-20230930x10q.htm:12]** **[0001558370-23-017324_spg-20230930x10q.htm:6]** **[0001558370-24-014946_spg-20240930x10q.htm:6]** **[0001558370-24-014946_spg-20240930x10q.htm:12]**   
- Proceeds from Debt: $1.025 billion (+521% YoY)  **[0001558370-23-017324_spg-20230930x10q.htm:12]** **[0001558370-23-017324_spg-20230930x10q.htm:6]** **[0001558370-24-014946_spg-20240930x10q.htm:6]** **[0001558370-24-014946_spg-20240930x10q.htm:12]**   
- Repayments of Debt: $1.013 billion (+581% YoY)  **[0001558370-23-017324_spg-20230930x10q.htm:12]** **[0001558370-23-017324_spg-20230930x10q.htm:6]** **[0001558370-24-014946_spg-20240930x10q.htm:6]** **[0001558370-24-014946_spg-20240930x10q.htm:12]**   
- Net Change in Cash: $935.67 million (vs. −$68.43 million YoY)  **[0001558370-23-017324_spg-20230930x10q.htm:12]** **[0001558370-23-017324_spg-20230930x10q.htm:6]** **[0001558370-24-014946_spg-20240930x10q.htm:6]** **[0001558370-24-014946_spg-20240930x10q.htm:12]**   

2535028405013020fc4278523f3e0f6d2039fdd3a6c8b5c647c056ecc01debd8

Ending Occupancy for U.S. Malls and Premium Outlets (Consolidated) (percent)

Ending Occupancy for U.S. Malls and Premium Outlets (Unconsolidated) (percent)

Ending Occupancy for U.S. Malls and Premium Outlets (Total Portfolio) (percent)

Ending Occupancy for U.S. TRG (percent)

Ending Occupancy for The Mills (percent)

Average Base Minimum Rent per Square Foot for U.S. Malls and Premium Outlets (Consolidated) (USD per square foot)

Average Base Minimum Rent per Square Foot for U.S. Malls and Premium Outlets (Unconsolidated) (USD per square foot)

Average Base Minimum Rent per Square Foot for U.S. Malls and Premium Outlets (Total Portfolio) (USD per square foot)

Average Base Minimum Rent per Square Foot for U.S. TRG (USD per square foot)

Average Base Minimum Rent per Square Foot for The Mills (USD per square foot)

Ending Occupancy for Japan Premium Outlets (percent)

Average Base Minimum Rent per Square Foot for Japan Premium Outlets (JPY per square foot)

Gross Leasable Area for Jakarta Premium Outlets (square feet)

Gross Leasable Area for Busan Premium Outlet Phase 2 (square feet)

Number of new leases signed for U.S. Malls and Premium Outlets (leases)

Number of renewal leases signed for U.S. Malls and Premium Outlets (leases)

Total square footage of new and renewal leases for U.S. Malls and Premium Outlets (million square feet)

7a459e8f849deeb5551dfcf4e117f69c87f5eb91b124d7acaac9146e5dfe3f8f

db36c0ba2ac72c75da706557f8f0523f2115e3457974c4c9fb5360e8aa3666e0

- **Strong leasing demand and favorable supply dynamics**: SPG is experiencing robust leasing momentum, with over 4,500 leases signed representing more than 18 million square feet in 2023. Leasing demand remains strong across all categories, while new retail real estate development is minimal, leading to historically low supply and positive rent growth. Occupancy costs are at the low end of historical ranges, suggesting potential for further rent increases.  **[SPG_3371933_3]**
- **Exciting growth initiatives**: SPG is investing in mixed-use developments, redeveloping department store spaces, and expanding their outlet business in Southeast Asia. They are also enhancing customer experience through technology and evolving their retailer mix with new and innovative concepts. These initiatives are expected to drive future growth and enhance property values.  **[SPG_3371933_13]**
- **Strong financial position and shareholder returns**: With approximately **$1.5 billion of free cash flow after dividends**, SPG has the capacity to fund projects internally, increase dividends, and repurchase shares. The company boasts an attractive dividend yield of around **6.5% to 7%**, and management believes the stock is undervalued, indicating potential upside for investors.  **[SPG_3371933_11]** **[SPG_3371933_5]**

72d3d606d5e14b015f2377888306c7e6965b0990604984d566258840ae3583a5

1. **Consumer Spending Trends**  
   **Q:** What's your latest view on the consumer amid recession fears?  
   **A:** David Simon noted that the lower-income consumer remains under pressure due to past inflation but is optimistic they'll improve given current benign inflation. The higher-end consumer hasn't slowed down and remains in a good spot with decent liquidity. They budgeted flat sales at the beginning of the year but are currently a little above that, providing some cushion. Overall, he expects the lower-end consumer to cycle more positively and the higher-end consumer to remain steady.  **[SPG_3396446_3]** 

2. **Leasing Demand and Occupancy**  
   **Q:** Is leasing demand strong, and can occupancy increase further?  
   **A:** Leasing demand is strong and steady, with no signs of abating; they recently had the best new deal committee meeting ever. Occupancy is expected to end the year north of **96%**, up from the current **95.6%**. While cautious about reaching a ceiling, they see opportunities to improve tenant mix, replacing underperforming retailers with better ones, which can drive higher sales and rents.  **[SPG_3396446_4]** **[SPG_3396446_5]** **[SPG_3396446_7]** 

3. **Impact of Economic Concerns**  
   **Q:** How do economic concerns affect expansion and investments?  
   **A:** David Simon feels they have never been better positioned and are not slowing down expansion plans despite potential recession risks. If the economy slows dramatically, the gap between SPG and competitors will only widen, creating opportunities. They just started construction in North Bay and may step up investment activities prudently. Retail partners are also taking a longer-term view and remain confident.  **[SPG_3396446_6]** 

4. **Interest Rates and Financing**  
   **Q:** Does the softening rate environment change financing plans?  
   **A:** With **$11 billion** in liquidity, SPG's financing plans remain unchanged despite lower interest rates. They plan to use their **$3.1 billion** in cash to address **$1.9 billion** in debt maturities in the back half of the year. Lower interest rates increase earnings potential and are beneficial to real estate, but they don't need to refinance immediately and can act when market conditions are favorable.  **[SPG_3396446_8]** 

5. **Retailer Bankruptcies Impact**  
   **Q:** How have 2024 bankruptcies affected financials and outlook?  
   **A:** Retail restructurings, including Express and Rue 21, had a decent impact, resulting in about **$0.15** per share less than planned due to lower lease income and land sales. These impacts were factored into their new guidance. The watchlist remains relatively flat with no significant new additions anticipated.  **[SPG_3396446_20]** **[SPG_3396446_22]** 

6. **External Acquisitions Strategy**  
   **Q:** Any plans for external acquisitions given market conditions?  
   **A:** SPG has not made significant external acquisitions recently and is focused on quality assets where they can add value at appropriate prices. They remain selective and are not expecting to purchase large portfolios. If they can't find suitable opportunities at the right price, they'll keep their liquidity and focus on existing operations.  **[SPG_3396446_9]** 

7. **Portfolio Performance in Downturn**  
   **Q:** How might your portfolio perform in a consumer downturn?  
   **A:** Historically, SPG's NOI cash flow tends to flatten rather than decline during recessions. David Simon expects that their cash flows would remain relatively flat, assuming a typical recession scenario, though specific outcomes depend on the severity and nature of any downturn.  **[SPG_3396446_19]** 

8. **Lease Backlog and Timing**  
   **Q:** What's the size and timing of your lease backlog?  
   **A:** They have a signed but not opened pipeline of about **300 basis points**, up from **200 basis points** a year ago. Most of these leases will commence next year, as retailers aim to open stores before key periods like back-to-school. The backlog indicates strong demand, but specific dollar amounts were not disclosed.  **[SPG_3396446_11]** **[SPG_3396446_17]** 

9. **Sensitivity to Tenant Sales**  
   **Q:** How sensitive are cash flows to tenant sales declines?  
   **A:** SPG's exposure to tenant sales fluctuations is less than in the past but higher than pre-COVID levels. While overage rents are a smaller portion now, they suggest overall cash flow volatility due to tenant sales changes is reduced. Exact percentages were not provided.  **[SPG_3396446_13]** 

10. **International and JV Performance**  
     **Q:** What's affecting international and JV performance this quarter?  
     **A:** A one-time performance fee recognized last year did not repeat this year, leading to a slight decline in international NOI. Despite this, international assets in Europe and Asia are performing on plan or better, with good comparable NOI growth and remaining on budget.  **[SPG_3396446_14]** 

e76e7088088731155c31339822615975ee95570cf5c9eeb8edc1c98d43276ac3

1. **Involvement with Express**  
   **Q:** Will you invest in Express and what's your brand strategy?  
   **A:** SPG was approached to participate in the turnaround of Express with **no capital investment** expected. They see value in the brand and believe they can add expertise without contributing capital, aiming to save jobs and create value. They don't expect any earnings volatility from this involvement.  **[SPG_3386713_4]** ,  **[SPG_3386713_16]** 

2. **Same-Store Sales Guidance**  
   **Q:** Is your same-store sales growth guidance still achievable?  
   **A:** Despite some unanticipated pressures like retailer bankruptcies, SPG remains confident in achieving their initial same-store growth guidance of at least **3%** for the year. They believe they can deliver on this goal without needing to update it every quarter.  **[SPG_3386713_6]** 

3. **Navigating Macro Slowdown**  
   **Q:** How would you handle a potential macroeconomic slowdown?  
   **A:** While not immune to macroeconomic factors, SPG believes they do their best work during tough times. With **$11 billion** in liquidity, they feel prepared to capitalize on opportunities and further separate from peers if a slowdown occurs.  **[SPG_3386713_8]** 

4. **Capital Allocation and Cash Use**  
   **Q:** How will you use the cash from the ABG sale?  
   **A:** After generating **$1.45 billion** from the ABG sale, SPG currently plans to hold the cash or pay down debt. No redeployment is contemplated in their guidance, but they are open to opportunities. They consider stock buybacks an appropriate use of capital at certain levels.  **[SPG_3386713_11]** ,  **[SPG_3386713_15]** 

5. **JCPenney Outlook and Charges**  
   **Q:** What's the outlook for JCPenney and related charges?  
   **A:** SPG took **$33 million** in pre-tax charges related to personnel and inventory adjustments at SPARC and JCPenney. Most JCPenney stores are positive EBITDA, and SPG doesn't anticipate significant store closures. They have opportunities to reclaim certain spaces for redevelopment, as per agreements from the bankruptcy process.  **[SPG_3386713_12]** ,  **[SPG_3386713_13]** 

6. **Development Opportunities**  
   **Q:** Are you pursuing new development and acquisitions?  
   **A:** With stabilized interest rates, SPG feels confident proceeding with approximately **$500 million** in development starts, primarily focused on mixed-use projects. They see external opportunities ahead but will prioritize investments that add cash flow growth without taking their eye off existing portfolio operations.  **[SPG_3386713_7]** 

7. **Luxury Initiatives**  
   **Q:** What's your plan for luxury offerings and VIP suites?  
   **A:** SPG aims to enhance services for high-income consumers by expanding luxury VIP suites and improving dining and retail mixes in about **20 to 25** key properties. They want to create special experiences to cater to the very high-end segment and maintain strong relationships with top retailers.  **[SPG_3386713_10]** 

8. **Retail Investment Volatility**  
   **Q:** How do you balance retailer investments and earnings volatility?  
   **A:** SPG focuses on return on investment while understanding the impact on their overall business. They view volatility as marginal and believe their retailer investments have generated significant cash, such as the **$1.45 billion** from the ABG sale. They consider each investment individually and are open to opportunities that add value without causing undue volatility.  **[SPG_3386713_9]** 

9. **Sales Trends and Tenant Impact**  
   **Q:** How are sales per square foot trending, excluding certain tenants?  
   **A:** Total portfolio sales were up **2.3%**, but when excluding two unnamed underperforming retailers, sales per square foot over the last 12 months were down **1.8%**. SPG focuses on total volume and prefers not to name specific tenants.  **[SPG_3386713_14]** 

10. **Categories Driving Demand**  
    **Q:** Which categories are most in demand in your malls?  
    **A:** Demand is broad-based, including restaurants, entertainment, athleisure, sports-related retailers, and big-box stores like Zara. High-income brands and dining options are performing well, indicating strong consumer interest across categories.  **[SPG_3386713_17]** 

5d9f5128c035fcae76e311af9672f915610f0d738691c0c5f2820ae727422278

- **Exposure to distressed retailers may impact rental income**. Simon Property Group is facing challenges with certain retailers like **Express** and **Route 21**, which could pressure rental income streams. They have adjustments in their budgeting process for retailers under pressure, but unanticipated events can still affect their guidance.  **[SPG_3386713_6]**
- **Earnings volatility due to investments in retail operations**. The company's investments in retailers like SPARC and JCPenney resulted in a **$33 million one-time restructuring charge** in the first quarter. Additionally, the FFO contribution from Other Platform Investments (OPI) is expected to be around **breakeven this year**, down from the initial guidance of **$0.10 to $0.15 per share**, indicating potential volatility in earnings from these investments.  **[SPG_3386713_2]**
- **Macroeconomic headwinds and pressure on lower-income consumers**. Management notes that the **lower-income consumer has been under pressure for quite some time**, with inflation taking its toll. They anticipate continued volatility in this area, which could impact retail sales and tenant performance.  **[SPG_3386713_5]**

ccf3ba86c8a529cddd330833eda3463ee432ab4b17371df1636ddc05426bcfd7

- **Strong Leasing Momentum and High Occupancy Levels**: The company reported that leasing activity is robust, with **over 3,500 leases signed for 15 million square feet in the first nine months** and an additional **1,100 deals in the pipeline**, expected to generate over $400 million in revenue. Occupancy is increasing and is expected to be higher at year-end, approaching historical highs. **Tenant demand is strong across the whole spectrum**, with pricing comparable to the **2015-2017 era**, indicating strong pricing power.  **[SPG_3362820_5]**
- **Positive Outlook on Growth Despite Interest Rate Headwinds**: Management expressed confidence in achieving **3% comparable NOI growth** in 2024, despite anticipating some interest expense headwinds. They believe the business will continue to grow next year, supported by strong real estate performance.  **[SPG_3362820_3]**
- **Commitment to Shareholder Value through Strategic Capital Allocation**: The company is actively pursuing share buybacks, measuring capital investments against the opportunity to buy back stock, which they view as **"wildly accretive"**. They intend to monetize assets over time to fund buybacks, demonstrating a focus on enhancing shareholder value.  **[SPG_3362820_15]** **[SPG_3362820_9]**

89155dee402dee24621ede86e353708714c689444ae1389f2270b23dcff61684

| Year | Amount Due (in billions) | Debt Type                  | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|---------------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2024     | 1.016                        | Long-Term Debt (Principal)     | N/A                   | 4.0% = (1.016 / 25.572) * 100 **[0001558370-24-014946_spg-20240930x10q.htm:56]**                                             |
| 2025-2026| 7.571                        | Long-Term Debt (Principal)     | 3.50 (for €750M bond) | 29.6% = (7.571 / 25.572) * 100 **[0001558370-24-014946_spg-20240930x10q.htm:56]** **[0001558370-24-014946_spg-20240930x10q.htm:34]**                                    |
| 2027-2028| 3.677                        | Long-Term Debt (Principal)     | N/A                   | 14.4% = (3.677 / 25.572) * 100 **[0001558370-24-014946_spg-20240930x10q.htm:56]**                                           |
| 2033     | 0.650                        | Senior Unsecured Notes         | 5.50                 | 2.5% = (0.650 / 25.572) * 100 **[0001558370-24-014946_spg-20240930x10q.htm:34]**                                            |
| 2034     | 0.500                        | Senior Unsecured Notes         | 6.25                 | 2.0% = (0.500 / 25.572) * 100 **[0001558370-24-014946_spg-20240930x10q.htm:34]**                                            |
| After 2028| 13.308                      | Long-Term Debt (Principal)     | N/A                   | 52.0% = (13.308 / 25.572) * 100 **[0001558370-24-014946_spg-20240930x10q.htm:56]**                                          |
| 2053     | 0.650                        | Senior Unsecured Notes         | 5.85                 | 2.5% = (0.650 / 25.572) * 100 **[0001558370-24-014946_spg-20240930x10q.htm:34]**                                            |
| 2054     | 0.500                        | Senior Unsecured Notes         | 6.65                 | 2.0% = (0.500 / 25.572) * 100 **[0001558370-24-014946_spg-20240930x10q.htm:34]**                                            |

53a2528dcd329e81f5e18e480cc3a938e493344a2741046fa46438e27cd45fd3

1. **NOI Growth Outlook**  
   **Q:** Can you sustain mid-single-digit NOI growth in coming years?  
   **A:** Management believes they can continue the momentum in NOI growth, supported by rent growth, occupancy increases, and capital investments. They expect the positive trends to persist, indicating confidence in sustaining mid-single-digit NOI growth over the next few years.  **[SPG_3405479_16]** **[SPG_3405479_17]** 

2. **Leasing Momentum & Occupancy**  
   **Q:** With occupancy over 96%, can you still grow?  
   **A:** Despite high occupancy levels exceeding **96%**, there's still room for growth. Management is focused on improving merchandising mixes and bringing in the right tenants, which will drive further occupancy gains and enhance overall portfolio performance.  **[SPG_3405479_4]** **[SPG_3405479_9]** 

3. **Development & Redevelopment Pipeline**  
   **Q:** What's the potential of your development pipeline?  
   **A:** The company has a robust **$4 billion** development and redevelopment pipeline, including significant mixed-use and residential projects. They see massive opportunities ahead, with a residential pipeline over **$1 billion**, and plan to invest around **$1.5 billion** annually over the next few years.  **[SPG_3405479_5]** **[SPG_3405479_18]** 

4. **OPI Contribution & Real Estate Performance**  
   **Q:** How is OPI impacting FFO guidance?  
   **A:** The OPI contribution is expected to be **minus $5 to minus $10 million** for the year, but this is offset by significant improvement in real estate FFO. Management emphasizes the strong performance of their core real estate business despite the drag from OPI investments.  **[SPG_3405479_9]** 

5. **Digital Initiatives & Shop Simon**  
   **Q:** How are you engaging customers digitally?  
   **A:** Recognizing that **14-15%** of commerce is digital, management is investing in **Shop Simon**, their marketplace leveraging retailer relationships. They're enhancing loyalty programs, search functionality, and integrations with physical stores, reporting remarkable growth in GMV while remaining cautious about disclosing precise numbers.  **[SPG_3405479_7]** **[SPG_3405479_19]** 

6. **Opportunities in Lower-Tier Malls**  
   **Q:** Are there new opportunities in bottom-tier malls?  
   **A:** Yes, management sees real potential to improve the bottom 20% of their malls. With no new supply in those markets and the ability to reinvest, they believe they can make significant improvements, capitalizing on being the only game in town.  **[SPG_3405479_10]** 

7. **Capital Expenditure Plans**  
   **Q:** What's the expected development spend over next 3 years?  
   **A:** The company plans to commit around **$1.5 billion** annually to development and redevelopment projects, with some variation due to project sizes and timing, supporting their growth pipeline.  **[SPG_3405479_18]** 

8. **Acquisition Opportunities**  
   **Q:** Will you see more acquisitions in coming years?  
   **A:** Management anticipates acquisition opportunities but stresses being thoughtful about what to buy and at what price. While they haven't made significant acquisitions recently, they believe there will be chances to grow through acquisitions over time.  **[SPG_3405479_18]** 

9. **Leasing Pipeline & Luxury Retail**  
   **Q:** How is your SNO pipeline, especially in luxury?  
   **A:** They have executed **75 new luxury deals** covering **208,000 square feet**, with another **47** deals pending. The signed but not open number is about **300 basis points**, reflecting a strong luxury leasing pipeline that will contribute to growth over the next few years.  **[SPG_3405479_11]** 

10. **Election Impact & Tariffs**  
    **Q:** Thoughts on election outcomes and tariffs?  
    **A:** Management refrains from political commentary, emphasizing that the company must be prepared for all possible outcomes. They believe it's not their role to influence political decisions and focus on adapting to any changes that may affect the business.  **[SPG_3405479_15]** 

718a89fd029ae583f2dc34218377bbbf93a1cc92e063e799f5758b8da475f101

- **Higher interest rates and inflation are impacting consumer spending, particularly among moderate-income consumers, which could negatively affect tenant sales and demand.**  **[SPG_3362820_14]**
- **SPG expects flat retailer sales growth, indicating cautious expectations due to economic uncertainties, including inflation and rising interest rates.**  **[SPG_3362820_18]**
- **Interest expense headwinds are anticipated due to higher interest rates, which may impact profitability despite expectations of comparable NOI growth.**  **[SPG_3362820_3]**

0045619d7dc84f38aac975bb86c793be440d699291be9fe3499a3c930ce2dbf0

- **Strong Financial Position with $11 Billion of Liquidity:** SPG has **$11 billion of liquidity**, allowing them to refinance maturities with cash on hand and take advantage of opportunities. **Lower interest rates increase their earnings potential**, which is beneficial to real estate.  **[SPG_3396446_9]** ,  **[SPG_3396446_7]**
- **Robust Leasing Demand and Pipeline:** Demand for space is **strong and steady, not abating**, with a **signed but not open pipeline of about 300 basis points**. SPG had the **best new deal committee meeting ever**, indicating strong leasing activity and opportunities to improve tenant mix, which drives higher sales and rents.  **[SPG_3396446_8]** ,  **[SPG_3396446_12]** ,  **[SPG_3396446_4]**
- **Continued Pricing Power Leading to Rent Growth:** SPG continues to see **pricing power** with rent escalations similar to last year's levels. Updating the tenant mix drives demand and ultimately enhances their **pricing power**.  **[SPG_3396446_8]**

49f8c77c2e8cbff2c2b26e13022a8a5e4dc3be620310eb619e1de2ac41b28f41

- **SPG is expanding through redevelopment and new mixed-use projects, including multifamily developments in Bray and Orange County, and building 300 units at Northgate Station, demonstrating confidence in future growth and diversification.**  **[SPG_3386713_7]**
- **SPG is enhancing its properties to cater to high-income consumers, focusing on luxury services, fine dining, and preferred retailer mix, particularly in 20 to 25 high-end centers like Woodbury and Sawgrass, strengthening its position as a landlord of choice for top retailers.**  **[SPG_3386713_10]**
- **SPG generated $1.45 billion in cash from the sale of its ABG investment, significantly boosting liquidity, which can be used to reduce debt or invest in high-yield opportunities, enhancing financial flexibility and potential for future earnings growth.**  **[SPG_3386713_9]** ,  **[SPG_3386713_11]**

c3076fda1c48a9b3ab5f63bc7db4275f25ad45313cf73ca9ad41323d90a57cd3

- **Occupancy levels are approaching a potential ceiling at around 96%**, potentially limiting future growth from occupancy gains. Management acknowledges that further increases may be cautious from this point.  **[SPG_3396446_8]** **[SPG_3396446_6]**
- **International NOI declined by 1% year-over-year, and JV revenues decreased by about 4%**, indicating underperformance in these segments. The decline was partly due to the absence of a one-time performance fee recognized in the previous year, which may not recur.  **[SPG_3396446_15]**
- **Retail brands targeting lower-income consumers, particularly within Spark, continue to face a tough and competitive market**, affecting the company's overall retail operations and potentially impacting future earnings.  **[SPG_3396446_23]**

5e462aa2643def83ea028b7c6ad4ad15e991775046be9a529127759e9dfecae1

- **Redevelopment projects are causing a drag on earnings, with significant contributions not expected until 2025-2026, as the company is "taking a step back" in 2024.**  **[SPG_3371933_8]**
- **Lower-income consumers are still dealing with inflation and reduced discretionary income, negatively impacting operations, particularly in Other Platform Investments (OPI), which had a "tough" year and did not meet budgeted expectations.**  **[SPG_3371933_11]**
- **Tenant sales per square foot are down slightly while base rents are increasing, raising concerns about the sustainability of rent hikes amid declining tenant sales.**  **[SPG_3371933_9]**

561a7a2001437044425bc2cbbb0e1c12b05b797062abde6c245cd4b5030d5a8a

1. **Dividend Outlook and Capital Allocation**  
   **Q:** Will you return to pre-pandemic dividend levels?  
   **A:** We have **$1.5 billion of free cash flow after our dividend** and could increase the dividend to pre-pandemic levels, but our **yield is already high at 6.5%–7%**, compared to the S&P 500 under 2% and REIT peers in the 4% range.  **[SPG_3371933_5]**  We prefer to use capital for share buybacks and believe our current yield is sufficient for investors.  **[SPG_3371933_5]** 

2. **Monetization of ABG Stake**  
   **Q:** Are you selling more of your ABG stock?  
   **A:** We sold about **2% of our ABG stock**, reducing our ownership from just under 12% to just under 10%.  **[SPG_3371933_4]**  We'll continue to monetize these investments and redeploy capital into our core business if we see better growth opportunities.  **[SPG_3371933_4]** 

3. **Leasing Pipeline and Rent Growth**  
   **Q:** How is leasing demand and pricing now?  
   **A:** Leasing demand remains very strong, even at **96% leased**.  **[SPG_3371933_3]**  New deals are around **$74 per square foot**, renewals at **$65**, and expiring leases in the **$56–$57** range, leading to positive spreads.  **[SPG_3371933_3]**  Low supply and strong retailer interest support continued rent growth.  **[SPG_3371933_3]** 

4. **Sustainability of Rent Increases**  
   **Q:** Can rent growth continue despite lower tenant sales?  
   **A:** Yes, current rents are sustainable as occupancy costs are at the low end of our historical range at **12.6%**, previously up to 14%+.  **[SPG_3371933_6]**  Reported sales per foot may be understated due to returns, especially from online purchases returned in stores.  **[SPG_3371933_6]**  We believe supply and demand dynamics support ongoing rent growth.  **[SPG_3371933_6]** 

5. **Future Initiatives and Expansion**  
   **Q:** What are your key initiatives for the next 5 years?  
   **A:** We are focused on mixed-use development and redeveloping department store boxes.  **[SPG_3371933_4]**  We're excited about growing our outlet business in Southeast Asia, targeting robust markets with young populations.  **[SPG_3371933_4]**  We're also enhancing customer experience through technology initiatives like marketing, loyalty programs, and search tools.  **[SPG_3371933_4]** 

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Simon Property Group Inc (SPG)

Financials