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David simon property11/24/2023 ![]() ![]() We've recently announced our strategic partnership with Jamestown, a global real estate investment and management firm. We believe the value of our investments in OPI is over $2 billion. We expect to generate approximately $300 million in FFO from OPI, that is for those of you like math is a 60% return on investment. After cash distributions received, we have approximately $475 million of net investment within our other platform investments primarily an ABG and RGG. In the third quarter contributing $0.17 in FFO per share, as compared to $0.28 in the prior year period. Turning to our other platform investments. Our redevelopment pipeline is moving forward with more creative projects. We opened our 10th premium outlet in Japan and started construction on a significant expansion at Busan and South Korea. Our occupancy cost is at 12%, which is a level not seen since early 2015. Mills ended up at $677 per square foot, a 15% increase. We reported another record in the third quarter of $749 per square foot for the malls and outlets, which was an increase of 14% year-over-year. ![]() Reported retail sales momentum continued. The opening rate on our new leases has increased 10% since last year, or roughly $6 per lease. And we continue to have a significant number of leases in our pipeline. Leasing momentum continued, we signed nearly 900 leases for more than 3 million square feet in the quarter and have signed over 3,100 leases for more than 10 million square feet through the first nine months of the year. TRG was 94.5%, average base minimum rent increase for the fourth quarter in a row and was $54.80, an increase of 1.7% year-over-year. Occupancy ended third quarter 94.5%, an increase of 170 basis points compared to the prior year and an increase of 60 basis points compared to the second quarter. Portfolio NOI, which includes our international properties at constant currency, grew 3.2% for the quarter and 5.5% for the first nine months of the year. NOI growth for the quarter was negatively impacted by approximately 100 basis points due to the light off of outstanding receivables from Regal Theaters upon its bankruptcy filing. These positive contributions were partially offset by an $0.11 lower contribution from our other platform investments, which reflects costs associated with the JCPenney launch of new beauty brands, Reebok Integration costs and some softening of sales compared to 2021 from our two value-oriented brands.ĭomestic property, net operating income increased 2.3% for the quarter and 4.4% for the first nine months of the year. Our International operations posted strong results in the quarter and increased $0.05, despite the negative currency impact of $0.05 given the strength in the dollar. Let me walk you through some of the variances for the quarter compared to Q3 2021, our domestic operations had a very good quarter and contributed $0.05 of growth, driven by higher rental income. Third quarter funds from operations were $1.1 billion or $2.97 per share prior to a non-cash unrealized loss of $0.04 from a mark-to-market in fair value of publicly held securities. Good morning, and I’m pleased to report our third quarter results. Our conference call this morning will be limited to one hour. Both the press release and the supplemental information are available on our IR website at. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included within the press release and the supplemental information in today's Form 8-K filing. Please note that this call includes information that may be accurate only as of today's date. We refer you to today's press release and our SEC filings for a detailed discussion of the risk factors relating to those forward-looking statements. Presenting on today's call is David Simon, Chairman, Chief Executive Officer and President also on the call are Brian McDade, Chief Financial Officer and Adam Reuille, Chief Accounting Officer.Ī quick reminder that statements made during this call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995, and actual results may differ materially due to a variety of risks, uncertainties and other factors. Thank you, Larry, and thank you, all, for joining us this morning. It is now my pleasure to introduce your host, Tom Ward. As a reminder, this conference is being recorded. ![]() A brief question-and-answer session will follow the formal presentation. At this time, all participants are in a listen-only mode. Greetings, and welcome to the Simon Property Group's Third Quarter 2022 Earnings Conference Call. ( NYSE: SPG) Q3 2022 Earnings Conference Call Novem8:30 AM ETĭavid Simon - Chairman, CEO and PresidentĬraig Schmidt - Bank of America Merrill Lynch ![]()
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