Press Release

Simon Property Group Reports Fourth Quarter And Full Year 2019 Results

INDIANAPOLIS, Feb. 4, 2020 /PRNewswire/ -- Simon, a global leader in premier shopping, dining, entertainment and mixed-use destinations, today reported results for the quarter and twelve months ended December 31, 2019.

Simon (PRNewsfoto/Simon)

Results for the Year1

  • Net income attributable to common stockholders was $2.098 billion, or $6.81 per diluted share, as compared to $2.437 billion, or $7.87 per diluted share in 2018. Results for 2019 include $116.3 million, or $0.33 per diluted share, for a loss on extinguishment of debt related to the redemption of certain senior notes of Simon Property Group, L.P. The prior year period also included net gains of $324.4 million, or $0.91 per diluted share, primarily related to disposition activity.
  • Funds from Operations ("FFO") was $4.272 billion, or $12.04 per diluted share, as compared to $4.325 billion, or $12.13 per diluted share, in the prior year period. The 2019 results included the $0.33 per diluted share loss on the extinguishment of debt. FFO per diluted share, before this $0.33 debt charge, was $12.37, at the high end of the Company's original guidance range for 2019.
  • Growth in Comparable FFO per diluted share for the twelve months ended December 31, 2019 was 4.4%.

Results for the Quarter1

  • Net income attributable to common stockholders was $510.2 million, or $1.66 per diluted share, as compared to $712.8 million, or $2.30 per diluted share in 2018. Results for the fourth quarter of 2019 include the aforementioned loss on extinguishment of debt of $0.33 per diluted share. The prior year period included gains of $143.9 million, or $0.40 per diluted share.
  • FFO was $1.045 billion, or $2.96 per diluted share, as compared to $1.151 billion, or $3.23 per diluted share, in the prior year period. The fourth quarter 2019 results included the $0.33 per diluted share loss on the extinguishment of debt. Comparable FFO per diluted share was $3.29 in the fourth quarter 2019 compared to $3.20 in the prior year period, growth of 2.8%.

"I am pleased with our fourth quarter results, concluding another successful and productive year for our company," said David Simon, Chairman, Chief Executive Officer and President.  "In 2019, we opened one new shopping destination; delivered six international expansions; completed four redevelopments of former department stores and started construction on nine additional projects; and made several strategic investments in companies focused on enhancing our consumer experience.  During 2019, we returned approximately $3.3 billion to shareholders, including approximately $3.0 billion in dividends paid.  We continue to strengthen our portfolio through our innovative and disciplined investment activities that will allow us to continue to deliver long-term cash flow, FFO and dividends per share growth."

U.S. Malls and Premium Outlets Operating Statistics

  • Reported retailer sales per square foot was $693, an increase of 4.8%, for the trailing 12 months ended December 31, 2019.
  • Occupancy was 95.1% at December 31, 2019.
  • Base minimum rent per square foot was $54.59 at December 31, 2019.
  • Leasing spread per square foot for the trailing 12 months ended December 31, 2019 was $7.83, an increase of 14.4%.

Comparable Property Net Operating Income ("NOI") and Portfolio NOI
Comparable property NOI growth for the full year 2019, including international comparable properties on a constant currency basis, was 1.7%.  Comparable property NOI growth for North American properties was 1.4%.  Total portfolio NOI growth for the full year 2019 was 1.7%.  Total portfolio NOI includes NOI from comparable properties, new developments, redevelopments, expansions, acquisitions and our share of NOI from investments.      

Dividends
During 2019, the Company paid $8.30 per share in dividends, an increase of 5.1% compared to the prior year.  Today, Simon's Board of Directors declared a common stock dividend of $2.10 per share for the first quarter of 2020.  This is a 2.4% increase year-over-year.  The dividend will be payable on February 28, 2020 to shareholders of record on February 14, 2020.  The Company has paid more than $31 billion of dividends since its initial public offering.

Simon's Board of Directors also declared the quarterly dividend on its 8 3/8% Series J Cumulative Redeemable Preferred Stock (NYSE: SPGPrJ) of $1.046875 per share, payable on March 31, 2020 to shareholders of record on March 17, 2020. 

Development Activity
Construction continues on five new outlet development projects: one in the U.S. and four internationally.  Three projects are scheduled to open in 2020, including Malaga Designer Outlet (Malaga, Spain), Siam Premium Outlets Bangkok (Bangkok, Thailand) and West Midlands Designer Outlet (Cannock, England) and two are scheduled to open in 2021, including Tulsa Premium Outlets (Jenks (Tulsa), Oklahoma) and Paris-Giverny Designer Outlet (Vernon (Normandy), France). 

There are currently 15 redevelopment projects of former department store spaces under construction that will add compelling retail, entertainment and mixed-uses to centers such as Burlington Mall (Burlington (Boston), MA), Phipps Plaza (Atlanta, GA) and Northgate (Seattle, WA).

Construction also continues on other significant redevelopment and expansion projects including The Shops at Riverside (Hackensack, NJ), Sawgrass Mills (Miami, FL), Gotemba Premium Outlets (Gotemba, Japan) and Rinku Premium Outlets (Izumisano (Osaka), Japan). 

At quarter-end, redevelopment and expansion projects, including the redevelopment of former department store spaces, were underway at more than 30 properties in the U.S., Asia and Europe.  Simon's share of the costs of all new development and redevelopment projects under construction at quarter-end was approximately $1.8 billion

Balance Sheet Activity
The Company was active in the debt markets in 2019, continuing to lower our effective borrowing costs and extend our maturity profile.

During the year, the Company completed a three tranche senior notes offering totaling $3.5 billion with a weighted average coupon rate of 2.61% and weighted average term of 15.9 years. 

The Company also retired all, or a portion of, four series of senior notes totaling approximately $2.6 billion (USD equivalent) with a combined weighted average coupon rate of 3.76%.  The new notes offering had a weighted average coupon rate of approximately 115 basis points lower than the notes that were retired. 

As of December 31, 2019, Simon had more than $7.1 billion of liquidity consisting of cash on hand, including its share of joint venture cash, and available capacity under its revolving credit facilities, net of outstanding U.S. and Euro commercial paper.

2020 Guidance
The Company currently estimates net income to be within a range of $7.15 to $7.30 per diluted share for the year ending December 31, 2020 and that FFO will be within a range of $12.25 to $12.40 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, 2020

     
 

Low

 

High

 

End

 

End

Estimated net income attributable to common stockholders

     

     per diluted share

$7.15

 

$7.30

Depreciation and amortization including Simon's share

     

     of unconsolidated entities 

5.10

 

5.10

Estimated FFO per diluted share 

$12.25

 

$12.40

Conference Call
Simon will hold a conference call to discuss the quarterly financial results today at 8:30 a.m. Eastern Time, Tuesday, February 4, 2020.  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 February 11, 2020.  To access the audio replay, dial 1-855-859-2056 (international 404-537-3406) passcode 9776639. 

Supplemental Materials and Website
Supplemental information on our fourth quarter 2019 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, comparable FFO per share, comparable earnings 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.

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, if any, of the United Kingdom's exit from 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; the loss of key management personnel and the transition of LIBOR to an alternative reference rate. 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 subsequent other 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.

1 For a reconciliation of FFO and net income per diluted share on a comparable basis, please see Footnote E of the Footnotes to Unaudited Financial Information.

 

 

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

 
 

For the Three Months

 

For the Twelve Months

 

Ended December 31,

 

Ended December 31,

 

2019

2018

 

2019

2018

           

REVENUE:

         

Lease income

$ 1,356,238

$ 1,347,155

 

$ 5,243,771

$ 5,158,420

Management fees and other revenues

29,174

30,780

 

112,942

116,286

Other income

103,203

84,092

 

398,476

370,582

Total revenue

1,488,615

1,462,027

 

5,755,189

5,645,288

           

EXPENSES:

         

Property operating

113,741

115,216

 

453,145

450,636

Depreciation and amortization

324,310

329,145

 

1,340,503

1,282,454

Real estate taxes

118,600

112,790

 

468,004

457,740

Repairs and maintenance

26,743

26,081

 

100,495

99,588

Advertising and promotion

41,216

43,262

 

150,344

151,241

Home and regional office costs

45,217

30,584

 

190,109

136,677

General and administrative

7,333

10,830

 

34,860

46,543

Other

34,579

23,607

 

109,898

94,110

Total operating expenses

711,739

691,515

 

2,847,358

2,718,989

           

OPERATING INCOME BEFORE OTHER ITEMS

776,876

770,512

 

2,907,831

2,926,299

           

Interest expense

(189,813)

(204,341)

 

(789,353)

(815,923)

Loss on extinguishment of debt

(116,256)

-

 

(116,256)

-

Income and other taxes

(6,744)

(10,422)

 

(30,054)

(36,898)

Income from unconsolidated entities

127,657

149,987

 

444,349

475,250

Unrealized losses in fair value of equity instruments

(3,365)

(16,423)

 

(8,212)

(15,212)

Gain on sale or disposal of, or recovery on,

         

   assets and interests in unconsolidated entities and impairment, net

2,061

143,879

 

14,883

288,827

           

CONSOLIDATED NET INCOME

590,416

833,192

 

2,423,188

2,822,343

           

Net income attributable to noncontrolling interests 

79,388

119,562

 

321,604

382,285

Preferred dividends

834

834

 

3,337

3,337

           

NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$ 510,194

$ 712,796

 

$ 2,098,247

$ 2,436,721

           
           

BASIC AND DILUTED EARNINGS PER COMMON SHARE:

         

Net income attributable to common stockholders

$ 1.66

$ 2.30

 

$ 6.81

$ 7.87

 

 

 

Simon Property Group, Inc.

Unaudited Consolidated Balance Sheets

(Dollars in thousands, except share amounts)

 
     
 

December 31,

December 31,

 

2019

2018

ASSETS:

   

  Investment properties, at cost

$ 37,804,495

$ 37,092,670

  Less - accumulated depreciation

13,905,776

12,884,539

 

23,898,719

24,208,131

  Cash and cash equivalents

669,373

514,335

  Tenant receivables and accrued revenue, net

832,151

763,815

  Investment in unconsolidated entities, at equity

2,371,053

2,220,414

  Investment in Klépierre, at equity

1,731,649

1,769,488

  Right-of-use assets, net

514,660

-

  Deferred costs and other assets

1,214,025

1,210,040

  Total assets

$ 31,231,630

$ 30,686,223

     

LIABILITIES:

   

  Mortgages and unsecured indebtedness

$ 24,163,230

$ 23,305,535

  Accounts payable, accrued expenses, intangibles, and deferred revenues

1,390,682

1,316,861

  Cash distributions and losses in unconsolidated entities, at equity

1,566,294

1,536,111

  Lease liabilities

516,809

-

  Other liabilities

464,304

500,597

  Total liabilities

28,101,319

26,659,104

     

Commitments and contingencies

   

Limited partners' preferred interest in the Operating Partnership and noncontrolling

   

  redeemable interests in properties

219,061

230,163

     

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 8 3/8% cumulative redeemable preferred stock, 1,000,000 shares authorized,

   

  796,948 issued and outstanding with a liquidation value of $39,847

42,420

42,748

     

  Common stock, $ 0.0001 par value, 511,990,000 shares authorized, 320,435,256 and

   

  320,411,571 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

9,756,073

9,700,418

  Accumulated deficit

(5,379,952)

(4,893,069)

  Accumulated other comprehensive loss

(118,604)

(126,017)

  Common stock held in treasury, at cost, 13,574,296 and 11,402,103 shares, respectively

(1,773,571)

(1,427,431)

  Total stockholders' equity

2,526,398

3,296,681

Noncontrolling interests

384,852

500,275

  Total equity

2,911,250

3,796,956

  Total liabilities and equity

$ 31,231,630

$ 30,686,223

 

 

Simon Property Group, Inc.

Unaudited Joint Venture Combined Statements of Operations

(Dollars in thousands)

 
           
           
 
 

For the Three Months
Ended December 31,

 

For the Twelve Months
Ended December 31,

 

2019

2018

 

2019

2018

           

REVENUE:

         

  Lease income

$ 802,746

$ 786,217

 

$ 3,088,594

$ 3,045,668

  Other income

88,060

93,828

 

322,398

326,575

  Total revenue

890,806

880,045

 

3,410,992

3,372,243

           

OPERATING EXPENSES:

         

  Property operating

152,320

153,203

 

587,062

590,921

  Depreciation and amortization

169,693

164,870

 

681,764

652,968

  Real estate taxes

65,314

62,070

 

266,013

259,567

  Repairs and maintenance

23,491

23,441

 

85,430

87,408

  Advertising and promotion

25,808

21,924

 

89,660

87,349

  Other

53,374

43,757

 

196,178

187,292

  Total operating expenses

490,000

469,265

 

1,906,107

1,865,505

           

OPERATING INCOME BEFORE OTHER ITEMS

400,806

410,780

 

1,504,885

1,506,738

           

Interest expense

(163,074)

(158,154)

 

(636,988)

(663,693)

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

3,022

7,575

 

24,609

33,367

           

NET INCOME

$ 240,754

$ 260,201

 

$ 892,506

$ 876,412

           

Third-Party Investors' Share of Net Income

$ 128,618

$ 132,593

 

$ 460,696

$ 436,767

           

Our Share of Net Income

112,136

127,608

 

431,810

439,645

Amortization of Excess Investment (A)

(21,143)

(20,804)

 

(83,556)

(85,252)

Our Share of Gain on Sale or Disposal of Assets and Interests in

         

  Other Income in the Consolidated Financial Statements

-

-

 

(9,156)

-

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

         

  Unconsolidated Entities, net

(1,133)

(2,841)

 

(1,133)

(12,513)

           

Income from Unconsolidated Entities (B)

$ 89,860

$ 103,963

 

$ 337,965

$ 341,880

           

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.

 

 

Simon Property Group, Inc.

Unaudited Joint Venture Combined Balance Sheets

(Dollars in thousands)

 
       
       
 
 

December 31,

December 31,

 
 

2019

2018

 

Assets:

     

Investment properties, at cost

$ 19,525,665

$ 18,807,449

 

Less - accumulated depreciation

7,407,627

6,834,633

 
 

12,118,038

11,972,816

 

Cash and cash equivalents

1,015,864

1,076,398

 

Tenant receivables and accrued revenue, net

510,157

445,148

 

Right-of-use assets, net

185,302

-

 

Deferred costs and other assets

384,663

390,818

 

Total assets

$ 14,214,024

$ 13,885,180

 
       

Liabilities and Partners' Deficit:

     

Mortgages

$ 15,391,781

$ 15,235,415

 

Accounts payable, accrued expenses, intangibles, and deferred revenue

977,112

976,311

 

Lease liabilities

186,594

-

 

Other liabilities

338,412

344,205

 

Total liabilities

16,893,899

16,555,931

 
       

Preferred units

67,450

67,450

 

Partners' deficit

(2,747,325)

(2,738,201)

 

Total liabilities and partners' deficit

$ 14,214,024

$ 13,885,180

 
       

Our Share of:

     

Partners' deficit

$ (1,196,926)

$ (1,168,216)

 

Add: Excess Investment (A)

1,525,903

1,594,198

 

Our net Investment in unconsolidated entities, at equity

$ 328,977

$ 425,982

 
 

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.

 
   

 

 

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

 

For the Twelve Months Ended

         

December 31,

 

December 31,

         

2019

 

2018

 

2019

 

2018

                       

Consolidated Net Income (D)

     

$               590,416

 

$           833,192

 

$         2,423,188

 

$      2,822,343

Adjustments to Arrive at FFO:

               
                       
 

Depreciation and amortization from consolidated 

             
 

     properties 

   

321,404

 

326,273

 

1,329,843

 

1,270,888

 

Our share of depreciation and amortization from

             
 

     unconsolidated entities, including Klépierre and HBS

139,579

 

129,818

 

551,596

 

533,595

 

Gain on sale or disposal of, or recovery on,

             
 

    assets and interests in unconsolidated entities and impairment, net

(2,061)

 

(137,263)

 

(14,883)

 

(282,211)

 

Unrealized losses in fair value of equity instruments

3,365

 

16,423

 

8,212

 

15,212

 

Net income attributable to noncontrolling interest holders in

             
 

     properties

   

(1,172)

 

(10,642)

 

(991)

 

(11,327)

 

Noncontrolling interests portion of depreciation and amortization

(4,834)

 

(5,082)

 

(19,442)

 

(18,647)

 

Preferred distributions and dividends

(1,313)

 

(1,313)

 

(5,252)

 

(5,252)

FFO of the Operating Partnership

$            1,045,384

 

$        1,151,406

 

$         4,272,271

 

$      4,324,601

                       
                       

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

             

Diluted net income per share

 

$                    1.66

 

$                2.30

 

$                 6.81

 

$              7.87

 

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

1.30

 

1.27

 

5.25

 

5.01

 

Gain on sale or disposal of, or recovery on,

             
 

    assets and interests in unconsolidated entities and impairment, net

(0.01)

 

(0.39)

 

(0.04)

 

(0.79)

 

Unrealized losses in fair value of equity instruments

0.01

 

0.05

 

0.02

 

0.04

Diluted FFO per share 

 

$                    2.96

 

$                3.23

 

$               12.04

 

$            12.13

                       

Details for per share calculations:

               
                       

FFO of the Operating Partnership

 

$            1,045,384

 

$        1,151,406

 

$         4,272,271

 

$      4,324,601

Diluted FFO allocable to unitholders

(138,219)

 

(152,122)

 

(563,342)

 

(568,817)

Diluted FFO allocable to common stockholders

$               907,165

 

$           999,284

 

$         3,708,929

 

$      3,755,784

                       

Basic and Diluted weighted average shares outstanding

306,869

 

309,294

 

307,950

 

309,627

Weighted average limited partnership units outstanding

46,751

 

47,102

 

46,774

 

46,893

                       

Basic and Diluted weighted average shares and units outstanding

353,620

 

356,396

 

354,724

 

356,520

                       

Basic and Diluted FFO per Share

 

$                    2.96

 

$                3.23

 

$               12.04

 

$            12.13

    Percent Change

   

-8.4%

     

-0.7%

   
               

 

 

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 assets.

                         

(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 Footnote 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-K.

                         

(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") Funds From Operations White Paper - 2018 Restatement. Our main business includes acquiring, owning, operating, developing, and redeveloping real estate in conjunction with the rental of real estate.  Gains and losses of assets incidental to our main business are included in FFO.  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, depreciable 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. 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 $3.2 million and $2.4 million for the three months ended December 31, 2019 and 2018, respectively, and $17.3 million and $6.3 million for the twelve months ended December 31, 2019 and 2018, respectively.

                         

-

Straight-line adjustments increased income by $24.9 million and $6.7 million for the three months ended December 31, 2019 and 2018, respectively, and $90.9 million and $28.5 million for the twelve months ended December 31, 2019 and 2018, respectively.

                         

-

Amortization of fair market value of leases from acquisitions increased income by $1.4 million and $1.4 million for the three months ended December 31, 2019 and 2018, respectively, and $5.4 million and $4.4 million for the twelve months ended December 31, 2019 and 2018, respectively.

                         
                         

(E)

Reconciliation of reported earnings per share to comparable earnings per share and FFO per share to comparable FFO per share:

                         
 
           

THREE MONTHS

 

TWELVE MONTHS

           

ENDED

 

ENDED

           

DECEMBER 31,

 

DECEMBER 31,

                         
           

2019

 

2018

 

2019

 

2018

   

Reported earnings per share 

 

$    1.66

 

$    2.30

 

$    6.81

 

$      7.87

   

  Add: Loss on extinguishment of debt

 

0.33

 

-

 

0.33

 

-

   

  Less: Non-cash investment gain (ABG)

 

-

 

-

 

-

 

(0.10)

   

  Less: Higher distribution income from international investment

-

 

-

 

-

 

(0.05)

   

  Less: ASC 842 expensing internal leasing costs

-

 

(0.03)

 

-

 

(0.13)

   

  Less: Gains on sale or disposal of assets

 

-

 

(0.40)

 

-

 

(0.81)

   

Comparable earnings per share

 

$    1.99

 

$    1.87

 

$    7.14

 

$      6.78

   

Comparable earnings per share growth

 

6.4%

     

5.3%

   
                         
                         
           

THREE MONTHS

 

TWELVE MONTHS

           

ENDED

 

ENDED

           

DECEMBER 31,

 

DECEMBER 31,

                         
           

2019

 

2018

 

2019

 

2018

   

Reported FFO per share

   

$    2.96

 

$    3.23

 

$   12.04

 

$    12.13

   

  Add: Loss on extinguishment of debt

 

0.33

 

-

 

0.33

 

-

   

  Less: Non-cash investment gain (ABG)

 

-

 

-

 

-

 

(0.10)

   

  Less: Higher distribution income from international investment

-

 

-

 

-

 

(0.05)

   

  Less: ASC 842 expensing internal leasing costs

-

 

(0.03)

 

-

 

(0.13)

   

Comparable FFO per share

 

$    3.29

 

$    3.20

 

$   12.37

 

$    11.85

   

Comparable FFO per share growth

 

2.8%

     

4.4%

   

 

 

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SOURCE Simon

Tom Ward, 317-685-7330, Investors; Ali Slocum, 317-264-3079, Media