Simon® Achieves Record Performance in Fourth Quarter and Full Year 2024 Financial Results

Simon® Reports Fourth Quarter and Full Year 2024 Results

Simon Property Group (SPG) has delivered impressive financial outcomes for the fourth quarter and the entire year of 2024, concluding the year with exceptional performance metrics. This esteemed real estate investment trust (REIT) specializes in owning premium shopping, dining, entertainment, and mixed-use destinations.

Key Highlights of the Fourth Quarter

In the fourth quarter of 2024, Simon reported a net income attributable to common stockholders of approximately $667.2 million, translating to $2.04 per diluted share. This marks a slight decrease from $747.5 million, or $2.29 per diluted share, in the same quarter of 2023. However, it is essential to note that the fourth quarter results included a significant non-cash, after-tax gain of $75.3 million arising from the merger of JCPenney with SPARC Group.

Funds From Operations (FFO) for the quarter was robust at $1.389 billion, or $3.68 per diluted share, maintaining nearly the same level as the prior year's $1.382 billion, or $3.69 per diluted share. Real Estate FFO saw a growth of 3.7% year-over-year, reaching $1.261 billion or $3.35 per diluted share. This illustrates Simon's stability and resilience, confirming its strong position in the retail real estate sector.

Full Year 2024 Breakdown

For the full year of 2024, Simon's net income attributable to common stockholders increased to $2.368 billion, or $7.26 per diluted share, compared to $2.280 billion, or $6.98 per diluted share, for 2023. This year's results significantly benefited from after-tax gains of $386.4 million linked to the sale of Simon's shares in Authentic Brands Group (ABG) and the merger of JCPenney and SPARC Group.

Furthermore, the total Funds From Operations for 2024 stood at $4.877 billion or $12.99 per diluted share, showcasing a year-over-year increase from $4.686 billion, or $12.51 per diluted share, previously. Real Estate FFO also showed impressive growth of 3.9% year-over-year, resulting in $4.597 billion or $12.24 per diluted share.

Operational Insights

In terms of operational efficiency, the fourth quarter witnessed growth in net operating income (NOI) of domestic properties, which rose by 4.4%. When taking the entire portfolio into account, NOI growth was slightly better at 4.5%. The reported sales per square foot for retailers was approximately $739 for the trailing twelve months that concluded on December 31, 2024. Moreover, Simon's occupancy rates reached an impressive 96.5%, a 0.7% increase from the same date in 2023.

Early 2025 forecasts suggest a favorable outlook for Simon, with estimates predicting net income between $6.95 and $7.20 per diluted share, and FFO and Real Estate FFO estimates ranging between $12.40 and $12.65. This guidance indicates sustained confidence in Simon's operational strategy and the robustness of its property portfolio.

Financial Strength and Shareholder Returns

Simon has maintained a healthy balance sheet, with approximately $10.1 billion liquidity as of the end of 2024. This includes $2.0 billion in cash and $8.1 billion available under its revolving credit facilities. Notably, the company has also declared a quarterly dividend of $2.10, reflecting a 7.7% increase year-over-year, demonstrating their commitment to returning value to shareholders.

Simon Property Group continues to solidify its reputation as a leader in the retail real estate sector, with its ongoing commitment to premium experiences, robust financial health, and shareholder returns.

Conclusion

Overall, Simon's achievements in 2024 affirm the company's strategic direction and operational effectiveness. The solid results achieved in both the fourth quarter and the entire year position Simon favorably for continued success in the retail real estate industry as we move into 2025. Investors and stakeholders can look forward to a growth trajectory bolstered by strong fundamentals and market presence.