spg_Current_Folio_10Q

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10‑Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

SIMON PROPERTY GROUP, INC.

SIMON PROPERTY GROUP, L.P.

(Exact name of registrant as specified in its charter)

Delaware
(Simon Property Group, Inc.)
Delaware
(Simon Property Group, L.P.)
(State of incorporation
or organization)

001‑14469
(Simon Property Group, Inc.)
001-36110
(Simon Property Group, L.P.)
(Commission File No.)

04‑6268599
(Simon Property Group, Inc.)
34-1755769
(Simon Property Group, L.P.)
(I.R.S. Employer
Identification No.)

225 West Washington Street
Indianapolis, Indiana 46204
(Address of principal executive offices)

(317) 636‑1600
(Registrant’s telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

 

Simon Property Group, Inc.    Yes     No

Simon Property Group, L.P.    Yes     No

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S‑T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).

 

 

Simon Property Group, Inc.    Yes    No

Simon Property Group, L.P.    Yes    No

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non‑accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act (check one):

Simon Property Group, Inc.:

 

 

 

Large accelerated filer 

Accelerated filer 

Non‑accelerated filer 

Smaller reporting company 

 

 

(Do not check if a smaller
reporting company)

 

Emerging growth company

 

 

 

 

Simon Property Group, L.P.:

 

 

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

(Do not check if a smaller
reporting company)

 

Emerging growth company

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

Simon Property Group, Inc.   

 

Simon Property Group, L.P.   

Indicate by check mark whether Registrant is a shell company (as defined by Rule 12b‑2 of the Exchange Act). 

 

Simon Property Group, Inc.    Yes     No

 

Simon Property Group, L.P.    Yes     No

As of June 30, 2018, Simon Property Group, Inc. had 309,209,683 shares of common stock, par value $0.0001 per share, and 8,000 shares of Class B common stock, par value $0.0001 per share, outstanding. Simon Property Group, L.P. has no common stock outstanding.

 

 

 

 

 


 

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EXPLANATORY NOTE

This report combines the quarterly reports on Form 10‑Q for the quarterly period ended June 30, 2018 of Simon Property Group, Inc., a Delaware corporation, and Simon Property Group, L.P., a Delaware limited partnership. Unless stated otherwise or the context otherwise requires, references to “Simon” mean Simon Property Group, Inc. and references to the “Operating Partnership” mean Simon Property Group, L.P. References to “we,” “us” and “our” mean collectively Simon, the Operating Partnership and those entities/subsidiaries owned or controlled by Simon and/or the Operating Partnership.

Simon is a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. We are structured as an umbrella partnership REIT under which substantially all of our business is conducted through the Operating Partnership, Simon’s majority‑owned partnership subsidiary, for which Simon is the general partner. As of June 30, 2018, Simon owned an approximate 86.8% ownership interest in the Operating Partnership, with the remaining 13.2% ownership interest owned by limited partners. As the sole general partner of the Operating Partnership, Simon has exclusive control of the Operating Partnership’s day‑to‑day management.

We operate Simon and the Operating Partnership as one business. The management of Simon consists of the same members as the management of the Operating Partnership. As general partner with control of the Operating Partnership, Simon consolidates the Operating Partnership for financial reporting purposes, and Simon has no material assets or liabilities other than its investment in the Operating Partnership. Therefore, the assets and liabilities of Simon and the Operating Partnership are the same on their respective financial statements.

We believe that combining the quarterly reports on Form 10‑Q of Simon and the Operating Partnership into this single report provides the following benefits:

·

enhances investors’ understanding of Simon and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

·

eliminates duplicative disclosure and provides a more streamlined presentation since substantially all of the disclosure in this report applies to both Simon and the Operating Partnership; and

·

creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

We believe it is important for investors to understand the few differences between Simon and the Operating Partnership in the context of how we operate as a consolidated company. The primary difference is that Simon itself does not conduct business, other than acting as the general partner of the Operating Partnership and issuing equity or equity‑related instruments from time to time. In addition, Simon itself does not incur any indebtedness, as all debt is incurred by the Operating Partnership or entities/subsidiaries owned or controlled by the Operating Partnership.

The Operating Partnership holds, directly or indirectly, substantially all of our assets, including our ownership interests in our joint ventures. The Operating Partnership conducts substantially all of our business and is structured as a partnership with no publicly traded equity. Except for the net proceeds from equity issuances by Simon, which are contributed to the capital of the Operating Partnership in exchange for, in the case of common stock issuances by Simon, common units of partnership interest in the Operating Partnership, or units, or, in the case of preferred stock issuances by Simon, preferred units of partnership interest in the Operating Partnership, or preferred units, the Operating Partnership, directly or indirectly, generates the capital required by our business through its operations, the incurrence of indebtedness, proceeds received from the disposition of certain properties and joint ventures and the issuance of units or preferred units to third parties.

The presentation of stockholders’ equity, partners’ equity and noncontrolling interests are the main areas of difference between the consolidated financial statements of Simon and those of the Operating Partnership. The differences between stockholders’ equity and partners’ equity result from differences in the equity issued at the Simon and Operating Partnership levels. The units held by limited partners in the Operating Partnership are accounted for as partners’ equity in the Operating Partnership’s financial statements and as noncontrolling interests in Simon’s financial statements. The noncontrolling interests in the Operating Partnership’s financial statements include the interests of unaffiliated partners in various consolidated partnerships. The noncontrolling interests in Simon’s financial statements include the same noncontrolling interests at the Operating Partnership level and, as previously stated, the units held by limited partners of the Operating Partnership. Although classified differently, total equity of Simon and the Operating Partnership is the same.

To help investors understand the differences between Simon and the Operating Partnership, this report provides:

·

separate consolidated financial statements for Simon and the Operating Partnership;

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·

a single set of condensed notes to such consolidated financial statements that includes separate discussions of noncontrolling interests and stockholders’ equity or partners’ equity, accumulated other comprehensive income (loss) and per share and per unit data, as applicable;

·

a combined Management’s Discussion and Analysis of Financial Condition and Results of Operations section that also includes discrete information related to each entity; and

·

separate Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds sections related to each entity.

This report also includes separate Part I, Item 4. Controls and Procedures sections and separate Exhibits 31 and 32 certifications for each of Simon and the Operating Partnership in order to establish that the requisite certifications have been made and that Simon and the Operating Partnership are each compliant with Rule 13a‑14(a) or Rule 15d‑14(a) of the Securities Exchange Act of 1934 and 18 U.S.C. §1350. The separate discussions of Simon and the Operating Partnership in this report should be read in conjunction with each other to understand our results on a consolidated basis and how management operates our business.

In order to highlight the differences between Simon and the Operating Partnership, the separate sections in this report for Simon and the Operating Partnership specifically refer to Simon and the Operating Partnership. In the sections that combine disclosure of Simon and the Operating Partnership, this report refers to actions or holdings of Simon and the Operating Partnership as being “our” actions or holdings. Although the Operating Partnership is generally the entity that directly or indirectly enters into contracts and joint ventures, holds assets and incurs debt, we believe that references to “we,” “us” or “our” in this context is appropriate because the business is one enterprise and we operate substantially all of our business through the Operating Partnership.

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Simon Property Group, Inc.

Simon Property Group, L.P.

Form 10‑Q

INDEX

 

 

 

    

Page

Part I — Financial Information

 

 

 

 

 

 

 

 

Item 1.

Consolidated Financial Statements of Simon Property Group, Inc. (Unaudited)

 

 

 

 

Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017

 

5

 

 

Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2018 and 2017

 

6

 

 

Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017

 

7

 

 

 

 

 

 

 

Consolidated Financial Statements of Simon Property Group, L.P. (Unaudited)

 

 

 

 

Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017

 

8

 

 

Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2018 and 2017

 

9

 

 

Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017

 

10

 

 

 

 

 

 

 

Condensed Notes to Consolidated Financial Statements

 

11

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

31

 

Item 3.

Qualitative and Quantitative Disclosures About Market Risk

 

44

 

Item 4.

Controls and Procedures

 

44

 

 

 

Part II — Other Information 

 

 

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

45

 

Item 1A.

Risk Factors

 

45

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

45

 

Item 3.

Defaults Upon Senior Securities

 

45

 

Item 4.

Mine Safety Disclosures

 

45

 

Item 5.

Other Information

 

46

 

Item 6.

Exhibits

 

47

 

 

 

Signatures 

 

48

 

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Simon Property Group, Inc.

Unaudited Consolidated Balance Sheets

(Dollars in thousands, except share amounts)

 

 

 

 

 

 

 

 

 

    

June 30, 

    

December 31, 

 

 

 

2018

 

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

 

 

The accompanying notes are an integral part of these statements.

 

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Simon Property Group, Inc.

Unaudited Consolidated Statements of Operations and Comprehensive Income

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

June 30, 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Net Income

 

$

631,414

 

$

441,373

 

$

1,346,938

 

$

992,448

 

Unrealized gain (loss) on derivative hedge agreements

 

 

21,260

 

 

(21,545)

 

 

15,113

 

 

(22,798)

 

Net loss reclassified from accumulated other comprehensive loss into earnings

 

 

2,185

 

 

2,439

 

 

4,339

 

 

5,059

 

Currency translation adjustments

 

 

(38,126)

 

 

16,745

 

 

(25,034)

 

 

29,892

 

Changes in available-for-sale securities and other

 

 

222

 

 

(1,152)

 

 

(66)

 

 

(463)

 

Comprehensive income

 

 

616,955

 

 

437,860

 

 

1,341,290

 

 

1,004,138

 

Comprehensive income attributable to noncontrolling interests

 

 

81,654

 

 

58,065

 

 

176,794

 

 

132,490

 

Comprehensive income attributable to common stockholders

 

$

535,301

 

$

379,795

 

$

1,164,496

 

$

871,648

 

 

The accompanying notes are an integral part of these statements.

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Simon Property Group, Inc.

Unaudited Consolidated Statements of Cash Flows

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended

 

 

 

June 30, 

 

 

    

2018

    

2017

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Consolidated Net Income

 

$

1,346,938

 

$

992,448

 

Adjustments to reconcile consolidated net income to net cash provided by operating activities —

 

 

 

 

 

 

 

Depreciation and amortization

 

 

674,067

 

 

675,608

 

Loss on debt extinguishment

 

 

 —

 

 

128,618

 

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

 

 

(144,949)

 

 

(4,989)

 

Unrealized change in fair value of equity instruments

 

 

(6,664)

 

 

 —

 

Gain on interest in unconsolidated entity (Note 5)

 

 

(35,621)

 

 

 —

 

Straight-line rent

 

 

(10,564)

 

 

(11,970)

 

Equity in income of unconsolidated entities

 

 

(190,854)

 

 

(161,101)

 

Distributions of income from unconsolidated entities

 

 

192,649

 

 

161,833

 

Changes in assets and liabilities —

 

 

 

 

 

 

 

Tenant receivables and accrued revenue, net

 

 

59,737

 

 

46,748

 

Deferred costs and other assets

 

 

(28,007)

 

 

(29,289)

 

Accounts payable, accrued expenses, intangibles, deferred revenues and other liabilities

 

 

(19,950)

 

 

11,677

 

Net cash provided by operating activities

 

 

1,836,782

 

 

1,809,583

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Acquisitions

 

 

 —

 

 

(87,741)

 

Funding of loans to related parties

 

 

(4,641)

 

 

(49,668)

 

Capital expenditures, net

 

 

(334,674)

 

 

(318,948)

 

Cash impact from the consolidation of properties

 

 

 —

 

 

7,536

 

Investments in unconsolidated entities

 

 

(29,296)

 

 

(93,459)

 

Purchase of marketable and non-marketable securities

 

 

(9,258)

 

 

(3,837)

 

Distributions of capital from unconsolidated entities and other

 

 

359,083

 

 

296,007

 

Net cash used in investing activities

 

 

(18,786)

 

 

(250,110)

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Proceeds from sales of common stock and other, net of transaction costs

 

 

(165)

 

 

(164)

 

Purchase of shares related to stock grant recipients' tax withholdings

 

 

(2,911)

 

 

(2,789)

 

Redemption of limited partner units

 

 

(7,619)

 

 

 —

 

Purchase of treasury stock

 

 

(307,296)

 

 

(396,169)

 

Distributions to noncontrolling interest holders in properties

 

 

(10,067)

 

 

(6,150)

 

Contributions from noncontrolling interest holders in properties

 

 

116

 

 

236

 

Preferred distributions of the Operating Partnership

 

 

(958)

 

 

(958)

 

Distributions to stockholders and preferred dividends

 

 

(1,210,168)

 

 

(1,094,925)

 

Distributions to limited partners

 

 

(182,949)

 

 

(165,741)

 

Loss on debt extinguishment

 

 

 —

 

 

(128,618)

 

Proceeds from issuance of debt, net of transaction costs

 

 

3,720,806

 

 

5,749,137

 

Repayments of debt

 

 

(4,584,847)

 

 

(5,584,777)

 

Net cash used in financing activities

 

 

(2,586,058)

 

 

(1,630,918)

 

DECREASE IN CASH AND CASH EQUIVALENTS

 

 

(768,062)

 

 

(71,445)

 

CASH AND CASH EQUIVALENTS, beginning of period

 

 

1,482,309

 

 

560,059

 

CASH AND CASH EQUIVALENTS, end of period

 

$

714,247

 

$

488,614

 

 

The accompanying notes are an integral part of these statements.

 

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Simon Property Group, L.P.

Unaudited Consolidated Balance Sheets

(Dollars in thousands, except unit amounts)

 

 

 

 

 

 

 

 

 

    

June 30, 

    

December 31, 

 

 

 

2018

 

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

 

 

 

 

 

 

 

Preferred units, various series, at liquidation value, and noncontrolling redeemable interests in properties

 

 

198,001

 

 

190,480

 

EQUITY:

 

 

 

 

 

 

 

Partners’ Equity

 

 

 

 

 

 

 

Preferred units, 796,948 units outstanding. Liquidation value of $39,847

 

 

42,912

 

 

43,077

 

General Partner, 309,217,683 and 311,166,854 units outstanding, respectively

 

 

3,328,112

 

 

3,643,091

 

Limited Partners, 46,824,406 and 46,879,625 units outstanding, respectively

 

 

503,972

 

 

548,858

 

Total partners’ equity

 

 

3,874,996

 

 

4,235,026

 

Nonredeemable noncontrolling interests in properties, net

 

 

3,632

 

 

3,738

 

Total equity

 

 

3,878,628

 

 

4,238,764

 

Total liabilities and equity

 

$

30,843,140

 

$

32,257,638

 

 

The accompanying notes are an integral part of these statements.

 

8


 

Table of Contents

Simon Property Group, L.P.

Unaudited Consolidated Statements of Operations and Comprehensive Income

(Dollars in thousands, except per unit amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

June 30, 

 

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 (loss) attributable to noncontrolling interests

 

 

279

 

 

74

 

 

186

 

 

(170)

 

Preferred unit requirements

 

 

1,313

 

 

1,313

 

 

2,626

 

 

2,626

 

NET INCOME ATTRIBUTABLE TO UNITHOLDERS

 

$

629,822

 

$

439,986

 

$

1,344,126

 

$

989,992

 

NET INCOME ATTRIBUTABLE TO UNITHOLDERS ATTRIBUTABLE TO:

 

 

 

 

 

 

 

 

 

 

 

 

 

General Partner

 

$

547,004

 

 

381,990

 

$

1,167,658

 

$

859,726

 

Limited Partners

 

 

82,818

 

 

57,996

 

 

176,468

 

 

130,266

 

Net income attributable to unitholders

 

$

629,822

 

$

439,986

 

$

1,344,126

 

$

989,992

 

BASIC AND DILUTED EARNINGS PER UNIT:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to unitholders

 

$

1.77

 

$

1.23

 

$

3.77

 

$

2.75