Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Document Information | |
Entity Registrant Name | SIMON PROPERTY GROUP, INC. |
Entity Central Index Key | 0001063761 |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Mar. 31, 2023 |
Entity File Number | 001-14469 |
Entity Tax Identification Number | 04-6268599 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 225 West Washington Street |
Entity Address, City or Town | Indianapolis |
Entity Address, State or Province | IN |
Entity Address, Postal Zip Code | 46204 |
City Area Code | 317 |
Local Phone Number | 636-1600 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q1 |
Common stock | |
Document Information | |
Title of 12(b) Security | Common stock, $0.0001 par value |
Trading Symbol | SPG |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | shares | 326,988,470 |
Entity Listing, Par Value Per Share | $ / shares | $ 0.0001 |
Class B common stock | |
Document Information | |
Entity Common Stock, Shares Outstanding | shares | 8,000 |
Entity Listing, Par Value Per Share | $ / shares | $ 0.0001 |
Series J Preferred stock | |
Document Information | |
Title of 12(b) Security | 83/8% Series J Cumulative Redeemable Preferred Stock, $0.0001 par value |
Trading Symbol | SPGJ |
Security Exchange Name | NYSE |
Simon Property Group, L.P. | |
Document Information | |
Entity Registrant Name | SIMON PROPERTY GROUP, L.P. |
Entity Central Index Key | 0001022344 |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Mar. 31, 2023 |
Entity File Number | 001-36110 |
Entity Tax Identification Number | 34-1755769 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 225 West Washington Street |
Entity Address, City or Town | Indianapolis |
Entity Address, State or Province | IN |
Entity Address, Postal Zip Code | 46204 |
City Area Code | 317 |
Local Phone Number | 636-1600 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS: | ||
Investment properties, at cost | $ 38,505,497 | $ 38,326,912 |
Less - accumulated depreciation | 16,823,305 | 16,563,749 |
Investment properties, at cost, net | 21,682,192 | 21,763,163 |
Cash and cash equivalents | 1,155,423 | 621,628 |
Tenant receivables and accrued revenue, net | 779,702 | 823,540 |
Right-of-use assets, net | 494,591 | 496,930 |
Deferred costs and other assets | 1,141,583 | 1,159,293 |
Total assets | 33,297,796 | 33,011,274 |
LIABILITIES: | ||
Mortgages and unsecured indebtedness | 25,569,968 | 24,960,286 |
Accounts payable, accrued expenses, intangibles, and deferred revenues | 1,351,870 | 1,491,583 |
Cash distributions and losses in unconsolidated entities, at equity | 1,703,448 | 1,699,828 |
Dividend payable | 2,436 | 1,997 |
Lease liabilities | 495,573 | 497,953 |
Other liabilities | 497,210 | 535,736 |
Total liabilities | 29,620,505 | 29,187,383 |
Commitments and contingencies | ||
Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | 224,419 | 212,239 |
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 | 41,352 | 41,435 |
Capital in excess of par value | 11,231,471 | 11,232,881 |
Accumulated deficit | (6,069,767) | (5,926,974) |
Accumulated other comprehensive loss | (160,854) | (164,873) |
Common stock held in treasury, at cost, 15,959,628 and 14,295,983 shares, respectively | (2,038,723) | (2,043,979) |
Total stockholders' equity | 3,003,513 | 3,138,524 |
Noncontrolling interests | 449,359 | 473,128 |
Total equity | 3,452,872 | 3,611,652 |
Total liabilities and equity | 33,297,796 | 33,011,274 |
TRG | ||
ASSETS: | ||
Investment, in equity | 3,062,030 | 3,074,345 |
Klepierre | ||
ASSETS: | ||
Investment, in equity | 1,541,743 | 1,561,112 |
Unconsolidated Investments excluding Klepierre and TRG | ||
ASSETS: | ||
Investment, in equity | 3,440,532 | 3,511,263 |
Simon Property Group, L.P. | ||
ASSETS: | ||
Investment properties, at cost | 38,505,497 | 38,326,912 |
Less - accumulated depreciation | 16,823,305 | 16,563,749 |
Investment properties, at cost, net | 21,682,192 | 21,763,163 |
Cash and cash equivalents | 1,155,423 | 621,628 |
Tenant receivables and accrued revenue, net | 779,702 | 823,540 |
Right-of-use assets, net | 494,591 | 496,930 |
Deferred costs and other assets | 1,141,583 | 1,159,293 |
Total assets | 33,297,796 | 33,011,274 |
LIABILITIES: | ||
Mortgages and unsecured indebtedness | 25,569,968 | 24,960,286 |
Accounts payable, accrued expenses, intangibles, and deferred revenues | 1,351,870 | 1,491,583 |
Cash distributions and losses in unconsolidated entities, at equity | 1,703,448 | 1,699,828 |
Dividend payable | 2,436 | 1,997 |
Lease liabilities | 495,573 | 497,953 |
Other liabilities | 497,210 | 535,736 |
Total liabilities | 29,620,505 | 29,187,383 |
Commitments and contingencies | ||
Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | 224,419 | 212,239 |
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): | ||
Preferred units, 796,948 units outstanding. Liquidation value of $39,847 | 41,352 | 41,435 |
General Partner, 326,996,470 and 326,953,791 units outstanding, respectively | 2,962,161 | 3,097,089 |
Limited Partners, 47,280,516 and 47,302,958 units outstanding, respectively | 428,295 | 448,076 |
Total partners' equity | 3,431,808 | 3,586,600 |
Nonredeemable noncontrolling interests in properties, net | 21,064 | 25,052 |
Total equity | 3,452,872 | 3,611,652 |
Total liabilities and equity | 33,297,796 | 33,011,274 |
Simon Property Group, L.P. | TRG | ||
ASSETS: | ||
Investment, in equity | 3,062,030 | 3,074,345 |
Simon Property Group, L.P. | Klepierre | ||
ASSETS: | ||
Investment, in equity | 1,541,743 | 1,561,112 |
Simon Property Group, L.P. | Unconsolidated Investments excluding Klepierre and TRG | ||
ASSETS: | ||
Investment, in equity | 3,440,532 | 3,511,263 |
Common stock | ||
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): | ||
Common stock | $ 34 | $ 34 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Capital stock, total shares authorized | 850,000,000 | 850,000,000 |
Capital stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Capital stock, shares of excess common stock | 238,000,000 | 238,000,000 |
Capital stock, authorized shares of preferred stock | 100,000,000 | 100,000,000 |
Common stock held in treasury, shares | 15,916,949 | 15,959,628 |
Series J Preferred stock | ||
Series J 8 3/8% cumulative redeemable preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Series J 8 3/8% cumulative redeemable preferred stock, shares issued | 796,948 | 796,948 |
Series J 8 3/8% cumulative redeemable preferred stock, shares outstanding | 796,948 | 796,948 |
Preferred units, Liquidation value (in dollars) | $ 39,847 | $ 39,847 |
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 511,990,000 | 511,990,000 |
Common stock, shares issued | 342,905,419 | 342,905,419 |
Common stock, shares outstanding | 342,905,419 | 342,905,419 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 10,000 | 10,000 |
Common stock, shares issued | 8,000 | 8,000 |
Common stock, shares outstanding | 8,000 | 8,000 |
Simon Property Group, L.P. | ||
Preferred units, units outstanding | 796,948 | 796,948 |
Preferred units, Liquidation value (in dollars) | $ 39,847 | $ 39,847 |
General Partner, units outstanding | 326,996,470 | 326,953,791 |
Limited Partners, units outstanding | 47,280,516 | 47,302,958 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
REVENUE: | ||
Lease income | $ 1,248,185 | $ 1,207,867 |
Management fees and other revenues | 28,949 | 27,587 |
Other income | 73,715 | 60,468 |
Total revenue | 1,350,849 | 1,295,922 |
EXPENSES: | ||
Property operating | 111,748 | 103,664 |
Depreciation and amortization | 307,059 | 310,163 |
Real estate taxes | 111,159 | 111,691 |
Repairs and maintenance | 22,174 | 22,304 |
Advertising and promotion | 24,159 | 25,263 |
Home and regional office costs | 56,820 | 52,197 |
General and administrative | 9,107 | 7,833 |
Other | 45,900 | 42,416 |
Total operating expenses | 688,126 | 675,531 |
OPERATING INCOME BEFORE OTHER ITEMS | 662,723 | 620,391 |
Interest expense | (199,429) | (185,159) |
Income and other tax benefit | 13,453 | 1,435 |
Income from unconsolidated entities | 21,900 | 81,184 |
Unrealized gains (losses) in fair value of publicly traded equity instruments, net | 20,608 | (31,032) |
Gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | 1,491 | |
CONSOLIDATED NET INCOME | 519,255 | 488,310 |
Net income (loss) attributable to noncontrolling interests | 66,594 | 60,846 |
Preferred dividends | 834 | 834 |
NET INCOME ATTRIBUTABLE TO UNITHOLDERS | $ 451,827 | $ 426,630 |
BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ||
Net income attributable to common stockholders - basic (in dollars per share) | $ 1.38 | $ 1.30 |
Net income attributable to common stockholders - diluted (in dollars per share) | $ 1.38 | $ 1.30 |
Consolidated Net Income | $ 519,255 | $ 488,310 |
Unrealized gain on derivative hedge agreements | 5,672 | 16,833 |
Net gain reclassified from accumulated other comprehensive loss into earnings | (501) | (387) |
Currency translation adjustments | (751) | 1,305 |
Changes in available-for-sale securities and other | 194 | (521) |
Comprehensive income | 523,869 | 505,540 |
Comprehensive income attributable to noncontrolling interests | 67,189 | 62,982 |
Comprehensive income attributable to common stockholders | 456,680 | 442,558 |
Simon Property Group, L.P. | ||
REVENUE: | ||
Lease income | 1,248,185 | 1,207,867 |
Management fees and other revenues | 28,949 | 27,587 |
Other income | 73,715 | 60,468 |
Total revenue | 1,350,849 | 1,295,922 |
EXPENSES: | ||
Property operating | 111,748 | 103,664 |
Depreciation and amortization | 307,059 | 310,163 |
Real estate taxes | 111,159 | 111,691 |
Repairs and maintenance | 22,174 | 22,304 |
Advertising and promotion | 24,159 | 25,263 |
Home and regional office costs | 56,820 | 52,197 |
General and administrative | 9,107 | 7,833 |
Other | 45,900 | 42,416 |
Total operating expenses | 688,126 | 675,531 |
OPERATING INCOME BEFORE OTHER ITEMS | 662,723 | 620,391 |
Interest expense | (199,429) | (185,159) |
Income and other tax benefit | 13,453 | 1,435 |
Income from unconsolidated entities | 21,900 | 81,184 |
Unrealized gains (losses) in fair value of publicly traded equity instruments, net | 20,608 | (31,032) |
Gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | 1,491 | |
CONSOLIDATED NET INCOME | 519,255 | 488,310 |
Net income (loss) attributable to noncontrolling interests | 762 | (996) |
Preferred dividends | 1,313 | 1,313 |
NET INCOME ATTRIBUTABLE TO UNITHOLDERS | 517,180 | 487,993 |
NET INCOME ATTRIBUTABLE TO UNITHOLDERS ATTRIBUTABLE TO: | ||
General Partner | 451,827 | 426,630 |
Limited Partners | $ 65,353 | $ 61,363 |
BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ||
Net income attributable to common stockholders - basic (in dollars per share) | $ 1.38 | $ 1.30 |
Net income attributable to common stockholders - diluted (in dollars per share) | $ 1.38 | $ 1.30 |
Consolidated Net Income | $ 519,255 | $ 488,310 |
Unrealized gain on derivative hedge agreements | 5,672 | 16,833 |
Net gain reclassified from accumulated other comprehensive loss into earnings | (501) | (387) |
Currency translation adjustments | (751) | 1,305 |
Changes in available-for-sale securities and other | 194 | (521) |
Comprehensive income | 523,869 | 505,540 |
Comprehensive income attributable to noncontrolling interests | 190 | 273 |
Comprehensive income attributable to common stockholders | $ 523,679 | $ 505,267 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated Net Income | $ 519,255 | $ 488,310 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities | ||
Depreciation and amortization | 322,392 | 324,124 |
Gain upon acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | (1,491) | |
Unrealized (gains) losses in fair value of equity instruments | (20,608) | 31,032 |
Straight-line lease loss | 6,912 | 9,254 |
Equity in income of unconsolidated entities | (21,900) | (81,184) |
Distributions of income from unconsolidated entities | 119,146 | 121,448 |
Changes in assets and liabilities | ||
Tenant receivables and accrued revenue, net | 25,774 | 89,958 |
Deferred costs and other assets | 3,981 | (41,214) |
Accounts payable, accrued expenses, intangibles, deferred revenues and other | (126,271) | (148,368) |
Net cash provided by operating activities | 828,681 | 791,869 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions | (27,712) | |
Funding of loans to related parties | (6,500) | (125,357) |
Repayments of loans to related parties | 2,913 | 71,930 |
Capital expenditures, net | (166,070) | (154,649) |
Investments in unconsolidated entities | (10,664) | (124,429) |
Purchase of equity instruments | (6,390) | |
Proceeds from sale of equity instruments | 978 | 25,986 |
Distributions of capital from unconsolidated entities and other | 47,315 | 213,010 |
Net cash used in investing activities | (159,740) | (99,899) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sales of common stock and other, net of transaction costs | (83) | (82) |
Purchase of shares related to stock grant recipients' tax withholdings | (2,624) | (3,757) |
Redemption of limited partner units | (2,858) | (147) |
Distributions to noncontrolling interest holders in properties | (5,525) | (1,205) |
Contributions from noncontrolling interest holders in properties | 6,459 | 4,833 |
Preferred distributions of the Operating Partnership | (479) | (479) |
Distributions to stockholders and preferred dividends | (590,434) | (543,010) |
Distributions to limited partners | (85,163) | (78,024) |
Proceeds from issuance of debt, net of transaction costs | 1,412,721 | 2,433,167 |
Repayments of debt | (867,160) | (2,522,273) |
Net cash used in financing activities | (135,146) | (710,977) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 533,795 | (19,007) |
CASH AND CASH EQUIVALENTS, beginning of period | 621,628 | 533,936 |
CASH AND CASH EQUIVALENTS, end of period | 1,155,423 | 514,929 |
Simon Property Group, L.P. | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated Net Income | 519,255 | 488,310 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities | ||
Depreciation and amortization | 322,392 | 324,124 |
Gain upon acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | (1,491) | |
Unrealized (gains) losses in fair value of equity instruments | (20,608) | 31,032 |
Straight-line lease loss | 6,912 | 9,254 |
Equity in income of unconsolidated entities | (21,900) | (81,184) |
Distributions of income from unconsolidated entities | 119,146 | 121,448 |
Changes in assets and liabilities | ||
Tenant receivables and accrued revenue, net | 25,774 | 89,958 |
Deferred costs and other assets | 3,981 | (41,214) |
Accounts payable, accrued expenses, intangibles, deferred revenues and other | (126,271) | (148,368) |
Net cash provided by operating activities | 828,681 | 791,869 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions | (27,712) | |
Funding of loans to related parties | (6,500) | (125,357) |
Repayments of loans to related parties | 2,913 | 71,930 |
Capital expenditures, net | (166,070) | (154,649) |
Investments in unconsolidated entities | (10,664) | (124,429) |
Purchase of equity instruments | (6,390) | |
Proceeds from sale of equity instruments | 978 | 25,986 |
Distributions of capital from unconsolidated entities and other | 47,315 | 213,010 |
Net cash used in investing activities | (159,740) | (99,899) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sales of common stock and other, net of transaction costs | (83) | (82) |
Purchase of shares related to stock grant recipients' tax withholdings | (2,624) | (3,757) |
Redemption of limited partner units | (2,858) | (147) |
Distributions to noncontrolling interest holders in properties | (5,525) | (1,205) |
Contributions from noncontrolling interest holders in properties | 6,459 | 4,833 |
Preferred distributions of the Operating Partnership | (676,076) | (621,513) |
Proceeds from issuance of debt, net of transaction costs | 1,412,721 | 2,433,167 |
Repayments of debt | (867,160) | (2,522,273) |
Net cash used in financing activities | (135,146) | (710,977) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 533,795 | (19,007) |
CASH AND CASH EQUIVALENTS, beginning of period | 621,628 | 533,936 |
CASH AND CASH EQUIVALENTS, end of period | $ 1,155,423 | $ 514,929 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Simon Property Group, L.P. Simon (Managing General Partner) | Simon Property Group, L.P. Limited Partners | Simon Property Group, L.P. Preferred Stock | Simon Property Group, L.P. Noncontrolling Interests | Simon Property Group, L.P. | Preferred Stock Series J Preferred stock | Common Stock. | Accumulated Other Comprehensive Income (Loss) | Capital in Excess of Par Value | Accumulated Deficit | Common Stock Held in Treasury | Noncontrolling Interests | Total |
Balance at Dec. 31, 2021 | $ 41,763 | $ 34 | $ (185,186) | $ 11,212,990 | $ (5,823,708) | $ (1,884,441) | $ 491,533 | $ 3,852,985 | |||||
Balance at Dec. 31, 2021 | $ 3,319,689 | $ 477,292 | $ 41,763 | $ 14,241 | $ 3,852,985 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Exchange of limited partner units | 27 | (27) | |||||||||||
Series J preferred stock premium amortization | (82) | (82) | (82) | (82) | |||||||||
Limited partner units exchanged to common units | 27 | (27) | |||||||||||
Stock incentive program | (6,864) | 6,864 | |||||||||||
Redemption of limited partner units | (137) | (10) | (147) | (137) | (10) | (147) | |||||||
Amortization of stock incentive | 3,705 | 3,705 | 3,705 | 3,705 | |||||||||
Long-term incentive performance units | 3,895 | 3,895 | 3,895 | 3,895 | |||||||||
Issuance of unit equivalents and other | (12,763) | (2) | (260) | (13,025) | 1 | (9,007) | (3,757) | (262) | (13,025) | ||||
Unrealized gain on hedging activities | 14,715 | 2,118 | 16,833 | 14,715 | 2,118 | 16,833 | |||||||
Currency translation adjustments | 1,170 | 135 | 1,305 | 1,170 | 135 | 1,305 | |||||||
Changes in available-for-sale securities and other | (455) | (66) | (521) | (455) | (66) | (521) | |||||||
Net gain reclassified from accumulated other comprehensive loss into earnings | (338) | (49) | (387) | (338) | (49) | (387) | |||||||
Other comprehensive income (loss) | 15,092 | 2,138 | 17,230 | 15,092 | 2,138 | 17,230 | |||||||
Adjustment to limited partners' interest from change in ownership in the Operating Partnership | 3,899 | (3,899) | 3,899 | (3,899) | |||||||||
Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | (543,010) | (78,024) | (621,034) | ||||||||||
Distributions to other noncontrolling interest partners | (60) | (60) | |||||||||||
Distributions, excluding distributions on preferred interests classified as temporary equity | (542,176) | (78,024) | (834) | (60) | (621,094) | ||||||||
Net income, excluding preferred distributions on temporary equity preferred units and amounts attributable to noncontrolling redeemable interests in properties | 426,630 | 61,363 | 834 | 273 | 489,100 | ||||||||
Net income, excluding attributable to preferred interests in the Operating Partnership and attributable to noncontrolling redeemable interests in properties | 427,464 | 61,636 | 489,100 | ||||||||||
Balance at Mar. 31, 2022 | 41,681 | 34 | (170,094) | 11,213,621 | (5,948,261) | (1,881,334) | 476,920 | 3,732,567 | |||||
Balance at Mar. 31, 2022 | 3,213,966 | 462,726 | 41,681 | 14,194 | 3,732,567 | ||||||||
Balance at Dec. 31, 2022 | 41,435 | 34 | (164,873) | 11,232,881 | (5,926,974) | (2,043,979) | 473,128 | 3,611,652 | |||||
Balance at Dec. 31, 2022 | 3,097,089 | 448,076 | 41,435 | 25,052 | 3,611,652 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Series J preferred stock premium amortization | (83) | (83) | (83) | (83) | |||||||||
Stock incentive program | (7,880) | 7,880 | |||||||||||
Redemption of limited partner units | (2,645) | (213) | (2,858) | (2,645) | (213) | (2,858) | |||||||
Amortization of stock incentive | 5,379 | 5,379 | 5,379 | 5,379 | |||||||||
Long-term incentive performance units | 3,382 | 3,382 | 3,382 | 3,382 | |||||||||
Issuance of unit equivalents and other | (7,644) | 1 | 188 | (7,455) | (5,020) | (2,624) | 189 | (7,455) | |||||
Unrealized gain on hedging activities | 4,959 | 713 | 5,672 | 4,959 | 713 | 5,672 | |||||||
Currency translation adjustments | (671) | (80) | (751) | (671) | (80) | (751) | |||||||
Changes in available-for-sale securities and other | 169 | 25 | 194 | 169 | 25 | 194 | |||||||
Net gain reclassified from accumulated other comprehensive loss into earnings | (438) | (63) | (501) | (438) | (63) | (501) | |||||||
Other comprehensive income (loss) | 4,019 | 595 | 4,614 | 4,019 | 595 | 4,614 | |||||||
Adjustment to limited partners' interest from change in ownership in the Operating Partnership | 3,736 | (3,736) | 3,736 | (3,736) | |||||||||
Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | (590,434) | (85,163) | (675,597) | ||||||||||
Distributions to other noncontrolling interest partners | (4,366) | (4,366) | |||||||||||
Distributions, excluding distributions on preferred interests classified as temporary equity | (589,600) | (85,163) | (834) | (4,366) | (679,963) | ||||||||
Net income, excluding preferred distributions on temporary equity preferred units and amounts attributable to noncontrolling redeemable interests in properties | 451,827 | 65,353 | 834 | 190 | 518,204 | ||||||||
Net income, excluding attributable to preferred interests in the Operating Partnership and attributable to noncontrolling redeemable interests in properties | 452,661 | 65,543 | 518,204 | ||||||||||
Balance at Mar. 31, 2023 | $ 41,352 | $ 34 | $ (160,854) | $ 11,231,471 | $ (6,069,767) | $ (2,038,723) | $ 449,359 | $ 3,452,872 | |||||
Balance at Mar. 31, 2023 | $ 2,962,161 | $ 428,295 | $ 41,352 | $ 21,064 | $ 3,452,872 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Exchange of limited partner units, (in shares) | 2,680 | |
Stock incentive program, shares | 65,017 | 47,804 |
Redemption of Limited Partner Units | 22,442 | 1,000 |
Shares repurchased | 22,338 | 23,514 |
Net income attributable to preferred interests in the Operating Partnership (in dollars) | $ 479 | $ 479 |
Net income (loss) attributable to noncontrolling redeemable interests in properties (in dollars) | $ 572 | $ (1,269) |
Simon Property Group, L.P. | ||
Limited partner units exchanged to common units | 2,680 | |
Stock incentive program, units | 65,017 | 47,804 |
Redemption of Limited Partner Units | 22,442 | 1,000 |
Issuance of equivalents units | 22,338 | 72,442 |
Issuance of common units | 23,514 | |
Net income, attributable to preferred distributions on temporary equity preferred units (in dollars) | $ 479 | $ 479 |
Net income (loss) attributable to noncontrolling redeemable interests in properties (in dollars) | $ 572 | $ (1,269) |
Organization
Organization | 3 Months Ended |
Mar. 31, 2023 | |
Organization | |
Organization | 1. Organization Simon Property Group, Inc. is a Delaware corporation that operates as a self-administered and self-managed real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. REITs will generally not be liable for U.S. federal corporate income taxes as long as they distribute not less than 100% of their REIT taxable income. Simon Property Group, L.P. is our majority-owned Delaware partnership subsidiary that owns all of our real estate properties and other assets. According to the Operating Partnership’s partnership agreement, the Operating Partnership is required to pay all expenses of Simon. In these condensed notes to the consolidated financial statements, 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. Unless otherwise indicated, these condensed notes to consolidated financial statements apply to both Simon and the Operating Partnership. We own, develop and manage premier shopping, dining, entertainment and mixed-use destinations, which consist primarily of malls, Premium Outlets ® ® |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Basis of Presentation | |
Basis of Presentation | 2. Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of all controlled subsidiaries, and all significant intercompany amounts have been eliminated. Due to the seasonal nature of certain operational activities, the results for the interim periods ended March 31, 2023, are not necessarily indicative of the results to be expected for the full year. These consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States (GAAP) for interim reporting. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments necessary for a fair presentation (including normal recurring accruals) have been included. The consolidated financial statements in this Form 10-Q should be read in conjunction with the audited consolidated financial statements and related notes contained in the combined 2022 Annual Report on Form 10-K of Simon and the Operating Partnership. Certain reclassifications considered necessary for a fair presentation have been made to the prior period financial statements in order to conform to the current year presentation. These reclassifications have not changed the results of operations. As of March 31, 2023, we consolidated 130 wholly-owned properties and 18 additional properties that are less than wholly-owned, but which we control or for which we are the primary beneficiary. We apply the equity method of accounting to the other 82 properties (the joint venture properties) and our investments in Klépierre and TRG, as well as our investments (collectively, our other platform investments) in retail operations (J.C. Penney and SPARC Group); an intellectual property and licensing venture (Authentic Brands Group, LLC, or ABG); an e-commerce venture (Rue Gilt Groupe, or RGG); and Jamestown (a global real estate investment and management company). We manage the day-to-day operations of 51 of the 82 joint venture properties, but have determined that our partner or partners have substantive participating rights with respect to the assets and operations of these joint venture properties. Our investments in joint ventures in Japan, South Korea, Mexico, Malaysia, Thailand, Canada, Spain, and the United Kingdom comprise 24 of the remaining 31 properties. These international properties and TRG are managed by joint ventures in which we share control. Preferred distributions of the Operating Partnership are accrued at declaration and represent distributions on outstanding preferred units of partnership interests, or preferred units, and are included in net income attributable to noncontrolling interests. We allocate net operating results of the Operating Partnership after preferred distributions to limited partners and to Simon based on the partners’ respective weighted average ownership interests in the Operating Partnership. Net operating results of the Operating Partnership attributable to limited partners are reflected in net income attributable to noncontrolling interests. Simon’s weighted average ownership interest in the Operating Partnership was 87.4% for both the three months ended March 31, 2023 and 2022. As of March 31, 2023 and December 31, 2022, Simon’s ownership interest in the Operating Partnership was 87.4%. We adjust the noncontrolling limited partners’ interests at the end of each period to reflect their interest in the net assets of the Operating Partnership. Preferred unit requirements in the Operating Partnership’s accompanying consolidated statements of operations and comprehensive income represent distributions on outstanding preferred units and are recorded when declared. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Significant Accounting Policies | |
Significant Accounting Policies | 3. Significant Accounting Policies Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of 90 days or less to be cash and cash equivalents. Cash equivalents are carried at cost, which approximates fair value. Cash equivalents generally consist of commercial paper, bankers’ acceptances, Eurodollars, repurchase agreements, and money market deposits or securities. Financial instruments that potentially subject us to concentrations of credit risk include our cash and cash equivalents and our trade accounts receivable. We place our cash and cash equivalents with institutions of high credit quality. However, at certain times, such cash and cash equivalents are in excess of Federal Deposit Insurance Corporation and Securities Investor Protection Corporation insurance limits. Equity Instruments and Debt Securities Equity instruments and debt securities consist primarily of equity instruments, our deferred compensation plan investments, the debt securities of our captive insurance subsidiary, and certain investments held to fund the debt service requirements of debt previously secured by investment properties. At March 31, 2023 and December 31, 2022, we had equity instruments with readily determinable fair values of $94.1 million and $73.0 million, respectively. Changes in the fair value of these equity instruments are recorded in unrealized gains (losses) in fair value of publicly traded equity instruments, net in our consolidated statements of operations and comprehensive income. At March 31, 2023 and December 31, 2022, we had equity instruments without readily determinable fair values of $237.2 million and $236.2 million, respectively, for which we have elected the measurement alternative. We regularly evaluate these investments for any impairment in their estimated fair value, as well as any observable price changes for an identical or similar equity instrument of the same issuer, and determined that no material adjustment in the carrying value was required for the three months ended March 31, 2023 and 2022. Our deferred compensation plan equity instruments are valued based upon quoted market prices. The investments have a matching liability as the amounts are fully payable to the employees that earned the compensation. Changes in value of these securities and changes to the matching liability to employees are both recognized in earnings and, as a result, there is no impact to consolidated net income. At March 31, 2023 and December 31, 2022, we held debt securities of $51.5 million and $52.3 million, respectively, in our captive insurance subsidiary. The types of securities included in the investment portfolio of our captive insurance subsidiary are typically U.S. Treasury or other U.S. government securities as well as corporate debt securities with maturities ranging from less than one year to ten years. These securities are classified as available-for-sale and are valued based upon quoted market prices or other observable inputs when quoted market prices are not available. The amortized cost of debt securities, which approximates fair value, held by our captive insurance subsidiary is adjusted for amortization of premiums and accretion of discounts to maturity. Changes in the values of these securities are recognized in accumulated other comprehensive income (loss) until the gain or loss is realized or until any unrealized loss is deemed to be other-than-temporary. We review any declines in value of these securities for other-than-temporary impairment and consider the severity and duration of any decline in value. To the extent an other-than-temporary impairment is deemed to have occurred, an impairment is recorded and a new cost basis is established. Our captive insurance subsidiary is required to maintain statutory minimum capital and surplus as well as maintain a minimum liquidity ratio. Therefore, our access to these securities may be limited. Fair Value Measurements Level 1 fair value inputs are quoted prices for identical items in active, liquid and visible markets such as stock exchanges. Level 2 fair value inputs are observable information for similar items in active or inactive markets, and appropriately consider counterparty creditworthiness in the valuations. Level 3 fair value inputs reflect our best estimate of inputs and assumptions market participants would use in pricing an asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation estimate. We have no investments for which fair value is measured on a recurring basis using Level 3 inputs. The equity instruments with readily determinable fair values we held at March 31, 2023 and December 31, 2022 were primarily classified as having Level 1 fair value inputs. In addition, we had derivative instruments which were classified as having Level 2 inputs, which consist primarily of foreign currency forward contracts, interest rate swap and cap agreements with an asset balance of $16.2 million at March 31, 2023 and $15.8 million at December 31, 2022, and a liability balance of $8.4 million and $8.6 million at March 31, 2023 and December 31, 2022, respectively. Note 7 includes a discussion of the fair value of debt measured using Level 2 inputs. Level 3 inputs to our purchase accounting and impairment analyses include our estimations of net operating results of the property, capitalization rates and discount rates. Noncontrolling Interests Simon Details of the carrying amount of our noncontrolling interests are as follows: As of As of March 31, December 31, 2023 2022 Limited partners’ interests in the Operating Partnership $ 428,295 $ 448,076 Nonredeemable noncontrolling interests in properties, net 21,064 25,052 Total noncontrolling interests reflected in equity $ 449,359 $ 473,128 Net income attributable to noncontrolling interests (which includes nonredeemable and redeemable noncontrolling interests in consolidated properties, limited partners’ interests in the Operating Partnership and preferred distributions payable by the Operating Partnership on its outstanding preferred units) is a component of consolidated net income. In addition, the individual components of other comprehensive income (loss) are presented in the aggregate for both controlling and noncontrolling interests, with the portion attributable to noncontrolling interests deducted from comprehensive income attributable to common stockholders. The Operating Partnership Our evaluation of the appropriateness of classifying the Operating Partnership’s common units of partnership interest, or units, held by Simon and the Operating Partnership's limited partners within permanent equity considered several significant factors. First, as a limited partnership, all decisions relating to the Operating Partnership’s operations and distributions are made by Simon, acting as the Operating Partnership’s sole general partner. The decisions of the general partner are made by Simon's Board of Directors or management. The Operating Partnership has no other governance structure. Secondly, the sole asset of Simon is its interest in the Operating Partnership. As a result, a share of common stock of Simon, or common stock, if owned by the Operating Partnership, is best characterized as being similar to a treasury share and thus not an asset of the Operating Partnership. Limited partners of the Operating Partnership have the right under the Operating Partnership’s partnership agreement to exchange their units for shares of common stock or cash, as selected by Simon as the sole general partner. Accordingly, we classify units held by limited partners in permanent equity because Simon may elect to issue shares of common stock to limited partners exercising their exchange rights rather than using cash. Under the Operating Partnership’s partnership agreement, the Operating Partnership is required to redeem units held by Simon only when Simon has repurchased shares of common stock. We classify units held by Simon in permanent equity because the decision to redeem those units would be made by Simon. Net income attributable to noncontrolling interests (which includes nonredeemable and redeemable noncontrolling interests in consolidated properties) is a component of consolidated net income. Accumulated Other Comprehensive Income (Loss) Simon The total accumulated other comprehensive income (loss) related to Simon’s currency translation adjustment was ($200.2) million and ($199.5) million as of March 31, 2023 and December 31, 2022, respectively. The reclassifications out of accumulated other comprehensive income (loss) consisted of the following: For the Three Months Ended March 31, Affected line item where 2023 2022 net income is presented Accumulated derivative gains, net $ 501 $ 387 Interest expense (63) (49) Net income attributable to noncontrolling interests $ 438 $ 338 The Operating Partnership The total accumulated other comprehensive income (loss) related to the Operating Partnership’s currency translation adjustment was ($229.1) million and ($228.3) million as of March 31, 2023 and December 31, 2022, respectively. The reclassifications out of accumulated other comprehensive income (loss) consisted of the following: For the Three Months Ended March 31, Affected line item where 2023 2022 net income is presented Accumulated derivative gains, net $ 501 $ 387 Interest expense New Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, “Reference Rate Reform,” which provides temporary optional expedients and exceptions to the US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. Additional optional expedients, exceptions, and clarifications were created in ASU 2021-01. The guidance is effective upon issuance and generally can be applied to any contract modifications or existing and new hedging relationships through December 31, 2024. We elected the expedients in conjunction with transitioning certain debt instruments, as discussed in note 7, to alternative benchmark indices. There was no impact on our consolidated financial statements at adoption. |
Real Estate Acquisitions and Di
Real Estate Acquisitions and Dispositions | 3 Months Ended |
Mar. 31, 2023 | |
Real Estate Acquisitions and Dispositions | |
Real Estate Acquisitions and Dispositions | 4. Real Estate Acquisitions and Dispositions Unless otherwise noted, gains and losses on property transactions are included in gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net in the accompanying consolidated statements of operations and comprehensive income. We capitalize asset acquisition costs and expense costs related to business combinations, as well as disposition related costs as they are incurred. We incurred a minimal amount of transaction expenses during the three months ended March 31, 2023 and 2022. 2022 Acquisitions On June 17, 2022, we acquired an additional interest in Gloucester Premium Outlets from a joint venture partner for $14.0 million in cash consideration, including a pro-rata share of working capital, resulting in the consolidation of this property. The property is subject to an $85.7 million 3.29% variable rate mortgage loan. We accounted for this transaction as an asset acquisition and substantially all of our investment has been determined to relate to investment property. 2022 Dispositions On June 17, 2022, we disposed of our interest in one consolidated retail property. The proceeds from this transaction were $59.0 million, resulting in a loss of $15.6 million. |
Per Share and Per Unit Data
Per Share and Per Unit Data | 3 Months Ended |
Mar. 31, 2023 | |
Per Share and Per Unit Data | |
Per Share and Per Unit Data | 5. Per Share and Per Unit Data We determine basic earnings per share and basic earnings per unit based on the weighted average number of shares of common stock or units, as applicable, outstanding during the period and we consider any participating securities for purposes of applying the two-class method. We determine diluted earnings per share and diluted earnings per unit based on the weighted average number of shares of common stock or units, as applicable, outstanding combined with the incremental weighted average number of shares or units, as applicable, that would have been outstanding assuming all potentially dilutive securities were converted into shares of common stock or units, as applicable, at the earliest date possible. The following tables set forth the components of basic and diluted earnings per share and basic and diluted earnings per unit. Simon For the Three Months Ended March 31, 2023 2022 Net Income attributable to Common Stockholders — Basic and Diluted $ 451,827 $ 426,630 Weighted Average Shares Outstanding — Basic and Diluted 326,954,294 328,606,352 For the three months ended March 31, 2023, potentially dilutive securities include units that are exchangeable for common stock and long-term incentive performance units, or LTIP units, granted under our long-term incentive performance programs that are convertible into units and exchangeable for common stock. No securities had a material dilutive effect for the three months ended March 31, 2023 and 2022. We have not adjusted net income attributable to common stockholders and weighted average shares outstanding for income allocable to limited partners or units, respectively, as doing so would have no dilutive impact. We accrue dividends when they are declared. The Operating Partnership For the Three Months Ended March 31, 2023 2022 Net Income attributable to Unitholders — Basic and Diluted $ 517,180 $ 487,993 Weighted Average Units Outstanding — Basic and Diluted 374,245,604 375,870,183 For the three months ended March 31, 2023, potentially dilutive securities include LTIP units. No securities had a material dilutive effect for the three months ended March 31, 2023 and 2022. We accrue distributions when they are declared. |
Investments in Unconsolidated E
Investments in Unconsolidated Entities and International Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments in Unconsolidated Entities and International Investments | |
Investments in Unconsolidated Entities and International Investments | 6. Investment in Unconsolidated Entities and International Investments Real Estate Joint Ventures and Investments Joint ventures are common in the real estate industry. We use joint ventures to finance properties, develop new properties and diversify our risk in a particular property or portfolio of properties. As discussed in note 2, we held joint venture interests in 82 properties as of March 31, 2023. Certain of our joint venture properties are subject to various rights of first refusal, buy-sell provisions, put and call rights, or other sale or marketing rights for partners which are customary in real estate joint venture agreements and the industry. We and our partners in these joint ventures may initiate these provisions (subject to any applicable lock up or similar restrictions), which may result in either the sale of our interest or the use of available cash or borrowings, or the use of limited partnership interests in the Operating Partnership, to acquire the joint venture interest from our partner. We may provide financing to joint venture properties primarily in the form of interest bearing construction loans. As of March 31, 2023 and December 31, 2022, we had construction loans and other advances to these related parties totaling $109.4 million and $112.0 million, respectively, which are included in deferred costs and other assets in the accompanying consolidated balance sheets. During 2022, we recorded a non-cash gain of $19.9 million related to the disposition and foreclosure of two unconsolidated properties in satisfaction of the respective $99.6 million and $83.1 million non-recourse mortgage loans. This non-cash investing and financing activity is excluded from our consolidated statement of cash flows. Taubman Realty Group We own an 80% noncontrolling ownership interest in TRG, which has an interest in 24 regional, super-regional, and outlet malls in the U.S. and Asia. Our investment includes 6.38% Series A Cumulative Redeemable Preferred Units for $362.5 million issued to us. The table below represents summary financial information of TRG. For the Three Months Ended March 31, 2023 2022 Total revenues $ 169,728 $ 162,609 Operating income before other items 74,778 61,853 Consolidated net income 44,953 38,669 Our share of net income 34,848 30,543 Amortization of excess investment (47,390) (49,025) Other Platform Investments As of March 31, 2023, we own a 41.67% non-controlling interest in J.C. Penney, a department store retailer. We also own a 50% non-controlling interest in SPARC Group. During the first quarter of 2022, SPARC Group acquired certain assets and operations of Reebok and entered into a long-term strategic partnership agreement with ABG to become the core licensee and operating partner for Reebok in the United States. At March 31, 2023, our interest in ABG was approximately 12.3%. On December 1, 2022, we sold to ABG all of our interests in the licensing venture of Eddie Bauer for additional interests in ABG. As a result, in the fourth quarter of 2022, we recognized a non-cash pre-tax gain of $159.0 million, representing the difference between the fair value of the interests received determined using Level 3 inputs and the $98.8 million carrying value of the intellectual property licensing venture less costs to sell. This non-cash investing and financing activity is excluded from our consolidated statement of cash flows. In connection with this transaction, we recorded deferred taxes of $39.7 million. On July 1, 2021, we sold to ABG all of our interests in both the Forever 21 and Brooks Brothers licensing ventures in exchange for additional interests in ABG. As a result, in the third quarter of 2021, we recognized a non-cash, pre-tax gain of $159.8 million representing the difference between the fair value of the interests received determined using Level 3 inputs and the carrying value of $102.7 million of the intellectual property licensing ventures less costs to sell. This non-cash investing and financing activity is excluded from our consolidated statement of cash flows. In connection with this transaction, we recorded deferred taxes of $47.9 million. On December 20, 2021, we sold a portion of our interest in ABG, resulting in a pre-tax gain of $18.8 million. In connection with this transaction, we recorded tax expense of $8.0 million. Subsequently, we acquired additional interests in ABG for cash consideration of $100.0 million. As of March 31, 2023, we own a 45% non-controlling interest in Rue Gilt Groupe. On December 19, 2022, we completed the acquisition of a 50% non-controlling legal ownership interest in Jamestown, a global real estate investment and asset management company, as well as separate interests in certain real estate and working capital, for total cash consideration of $173.4 million. Allocation of the excess investment to the underlying assets and liabilities acquired at the venture level is preliminary at March 31, 2023. The table below represents combined summary financial information, after intercompany eliminations, of our other platform investments. For the Three Months Ended March 31, 2023 2022 Total revenues $ 2,956,722 $ 3,140,858 Operating income before other items (17,869) (115,221) Consolidated net income (118,966) (159,412) Our share of net income (loss) (37,789) 9,889 Amortization of excess investment (1,665) (1,665) European Investments At March 31, 2023, we owned 63,924,148 shares, or approximately 22.4%, of Klépierre, which had a quoted market price of $22.68 per share. The table below represents summary financial information with respect to our investment in Klépierre. This information is based on applicable Euro:USD exchange rates and after our conversion of Klépierre’s results to GAAP. For the Three Months Ended March 31, 2023 2022 Total revenues $ 322,557 $ 293,349 Operating income before other items 105,308 75,895 Consolidated net income 82,719 46,416 Our share of net income 17,858 11,507 Amortization of excess investment (3,253) (2,796) We have an interest in a European investee that had interests in 11 Designer Outlet properties as of March 31, 2023 and December 31, 2022, seven of which are consolidated by us as of March 31, 2023. As of March 31, 2023, our legal percentage ownership interests in these properties ranged from 23% to 94%. In addition, we have a 50.0% noncontrolling interest in a European property management and development company that provides services to the Designer Outlet properties. We also have minority interests in Value Retail PLC and affiliated entities, which own or have interests in and operate nine luxury outlets located throughout Europe and we also have a direct minority ownership in three of those outlets. At March 31, 2023 and December 31, 2022, the carrying value of these equity instruments without readily determinable fair values was $140.8 million and is included in deferred costs and other assets. Asian Joint Ventures We conduct our international Premium Outlet operations in Japan through a joint venture with Mitsubishi Estate Co., Ltd. We have a 40% noncontrolling ownership interest in this joint venture. The carrying amount of our investment in this joint venture was $217.5 million and $206.3 million as of March 31, 2023 and December 31, 2022, respectively, including all related components of accumulated other comprehensive income (loss). We conduct our international Premium Outlet operations in South Korea through a joint venture with Shinsegae International Co. We have a 50% noncontrolling ownership interest in this joint venture. The carrying amount of our investment in this joint venture was $204.0 million and $199.5 million as of March 31, 2023 and December 31, 2022, respectively, including all related components of accumulated other comprehensive income (loss). Summary Financial Information A summary of the combined balance sheets and statements of operations of our equity method investments and share of income from such investments, excluding our investments in Klépierre and TRG as well as our other platform investments, follows. COMBINED BALANCE SHEETS March 31, December 31, 2023 2022 Assets: Investment properties, at cost $ 19,281,318 $ 19,256,108 Less - accumulated depreciation 8,615,876 8,490,990 10,665,442 10,765,118 Cash and cash equivalents 1,442,100 1,445,353 Tenant receivables and accrued revenue, net 504,883 546,025 Right-of-use assets, net 138,209 143,526 Deferred costs and other assets 445,744 482,375 Total assets $ 13,196,378 $ 13,382,397 Liabilities and Partners’ Deficit: Mortgages $ 14,544,401 $ 14,569,921 Accounts payable, accrued expenses, intangibles, and deferred revenue 881,365 961,984 Lease liabilities 127,840 133,096 Other liabilities 403,041 446,064 Total liabilities 15,956,647 16,111,065 Preferred units 67,450 67,450 Partners’ deficit (2,827,719) (2,796,118) Total liabilities and partners’ deficit $ 13,196,378 $ 13,382,397 Our Share of: Partners’ deficit $ (1,234,120) $ (1,232,086) Add: Excess Investment 1,212,729 1,219,117 Our net (deficit) Investment in unconsolidated entities, at equity $ (21,391) $ (12,969) “Excess Investment” represents the unamortized difference of our investment over our share of the equity in the underlying net assets of the joint ventures or other investments acquired and has been determined to relate to the fair value of the investment properties, intangible assets, including goodwill, and debt premiums and discounts. We amortize excess investment over the life of the related depreciable components of assets acquired, typically no greater than 40 years, the terms of the applicable leases, the estimated useful lives of the finite lived intangibles, and the applicable debt maturity, respectively. The amortization is included in the reported amount of income from unconsolidated entities. COMBINED STATEMENTS OF OPERATIONS For the Three Months Ended March 31, 2023 2022 REVENUE: Lease income $ 735,048 $ 717,768 Other income 90,046 112,585 Total revenue 825,094 830,353 OPERATING EXPENSES: Property operating 154,922 149,515 Depreciation and amortization 164,473 170,562 Real estate taxes 64,004 65,324 Repairs and maintenance 18,774 21,481 Advertising and promotion 20,710 19,318 Other 53,310 48,843 Total operating expenses 476,193 475,043 Operating Income Before Other Items 348,901 355,310 Interest expense (168,206) (144,448) Net Income $ 180,695 $ 210,862 Third-Party Investors’ Share of Net Income $ 90,259 $ 104,657 Our Share of Net Income 90,436 106,205 Amortization of Excess Investment (14,921) (15,139) Income from Unconsolidated Entities $ 75,515 $ 91,066 Our share of income from unconsolidated entities in the above table, aggregated with our share of results from our investments in Klépierre and TRG as well as our other platform investments, before any applicable taxes, is presented in income from unconsolidated entities in the accompanying consolidated statements of operations and comprehensive income. Unless otherwise noted, our share of the gain on acquisition of controlling interest sale or disposal of assets and interests in unconsolidated entities, net is reflected within gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net in the accompanying consolidated statements of operations and comprehensive income. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt | |
Debt | 7. Debt Unsecured Debt At March 31, 2023, our unsecured debt consisted of $20.4 billion of senior unsecured notes of the Operating Partnership and $125.0 million outstanding under the Operating Partnership’s $5.0 billion unsecured revolving credit facility, or Credit Facility and $815.8 million (U.S. dollar equivalent) of Euro-denominated borrowings outstanding under the Operating Partnership’s $3.5 billion unsecured revolving credit facility, or Supplemental Facility, or together with the Credit Facility, the Credit Facilities. At March 31, 2023, we had an aggregate available borrowing capacity of $7.6 billion under the Credit Facilities. The maximum aggregate outstanding balance under the Credit Facilities, during the three months ended March 31, 2023 was $940.8 million and the weighted average outstanding balance was $940.8 million. Letters of credit of $9.9 million were outstanding under the Credit Facilities as of March 31, 2023. On March 14, 2023, we amended, restated, extended, and increased our existing $4.0 billion unsecured revolving credit facility. The Credit Facility has an initial borrowing capacity of $5.0 billion which may be increased in the form of additional commitments in the aggregate not to exceed $1.0 billion, for a total aggregate size of $6.0 billion, subject to obtaining additional lender commitments and satisfying certain customary conditions precedent. Borrowings may be denominated in U.S. dollars, Euro, Yen, Pounds Sterling, Canadian dollars and Australian dollars. Borrowings in currencies other than the U.S. dollar are limited to 97% of the maximum revolving credit amount, as defined. The initial maturity date of the Credit Facility is June 30, 2027. The Credit Facility can be extended for two additional six-month periods to June 30, 2028, at our sole option, subject to satisfying certain customary conditions precedent. Borrowings under the Credit Facility bear interest, at our election, at either (i) (x) for Term Benchmark Loans, the Adjusted Term SOFR Rate, the applicable Local Rate, the Adjusted EURIBOR Rate, or the Adjusted TIBOR Rate, (y) for RFR Loans, if denominated in Sterling, SONIA plus a benchmark adjustment and if denominated in Dollars, Daily Simple SOFR plus a benchmark adjustment, or (z) for Daily SOFR Loans, the Adjusted Floating Overnight Daily SOFR Rate, in each case of clauses (x) through (z) above, plus a margin determined by our corporate credit rating of between 0.650% and 1.400% or (ii) for loans denominated in U.S. Dollars only, the base rate (which rate is equal to the greatest of the prime rate, the federal funds effective rate plus 0.500% or Adjusted Term SOFR Rate for one month plus 1.000%) (the “Base Rate”), plus a margin determined by our corporate credit rating of between 0.000% and 0.400%. The Credit Facility includes a facility fee determined by our corporate credit rating of between 0.100% and 0.300% on the aggregate revolving commitments under the Credit Facility. Based upon our current credit ratings, the interest rate on the Credit Facility is SOFR plus 72.5 basis points, plus a spread adjustment to account for the transition from LIBOR to SOFR. The Supplemental Facility’s borrowing capacity of $3.5 billion may be increased to $4.5 billion during its term and provides for borrowings denominated in U.S. dollars, Euro, Yen, Pounds, Sterling, Canadian dollars and Australian dollars. Borrowings in currencies other than the U.S. dollar are limited to 100% of the maximum revolving credit amount, as defined. The initial maturity date of the Supplemental Facility is January 31, 2026 and can be extended for an additional year to January 31, 2027 at our sole option, subject to satisfying certain customary conditions precedent. Borrowings under the Supplemental Facility bear interest, at the Company’s election, at either (i) (x) for Term Benchmark Loans, the Adjusted Term SOFR Rate, the applicable Local Rate, the Adjusted EURIBOR Rate, or the Adjusted TIBOR Rate, (y) for RFR Loans, if denominated in Sterling, SONIA plus a benchmark adjustment and if denominated in Dollars, Daily Simple SOFR plus a benchmark adjustment, or (z) for Daily SOFR Loans, the Adjusted Floating Overnight Daily SOFR Rate, in each case of clauses (x) through (z) above, plus a margin determined by our corporate credit rating of between 0.650% and 1.400% or (ii) for loans denominated in U.S. Dollars only, the base rate (which rate is equal to the greatest of the prime rate, the federal funds effective rate plus 0.500% or Adjusted Term SOFR Rate for one month plus 1.000%) (the “Base Rate”), plus a margin determined by our corporate credit rating of between 0.000% and 0.400%. The Supplemental Facility includes a facility fee determined by our corporate credit rating of between 0.100% and 0.300% on the aggregate revolving commitments under the Supplemental Facility. Based upon our current credit ratings, the interest rate on the Supplemental Facility is SOFR plus 72.5 basis points, plus a spread adjustment to account for the transition from LIBOR to SOFR. The Operating Partnership also has available a global unsecured commercial paper note program, or Commercial Paper program of, $2.0 billion, or the non-U.S. dollar equivalent thereof. The Operating Partnership may issue unsecured commercial paper notes, denominated in U.S. dollars, Euro and other currencies. Notes issued in non-U.S. currencies may be issued by one or more subsidiaries of the Operating Partnership and are guaranteed by the Operating Partnership. Notes are sold under customary terms in the U.S. and Euro commercial paper note markets and rank (either by themselves or as a result of the guarantee described above) pari passu with the Operating Partnership’s other unsecured senior indebtedness. The Commercial Paper program is supported by the Credit Facilities and, if necessary or appropriate, we may make one or more draws under either of the Credit Facilities to pay amounts outstanding from time to time on the Commercial Paper program. On March 31, 2023, we had no outstanding balance under the Commercial Paper program. Borrowings reduce amounts otherwise available under the Credit Facilities. On March 8, 2023, the Operating Partnership completed the issuance of the following senior unsecured notes: $650 million with a fixed interest rate 5.50%, and $650 million with a fixed interest rate of 5.85%, with maturity dates of March 8, 2033 and March 8, 2053, respectively. The Operating Partnership used a portion of the net proceeds of the offering to fund the optional redemption of its $500 million floating rate notes due January 2024 on March 13, 2023. On November 16, 2022, the Operating Partnership drew €750.0 million ($779.0 million U.S. dollar equivalent as of the issuance date) under the Supplemental facility and used the proceeds on November 17, 2022, to repay €750.0 million ($777.1 million U.S. dollar equivalent as of the payoff date) of senior unsecured notes at maturity. On January 11, 2022, the Operating Partnership completed the issuance of the following senior unsecured notes: $500 million with a floating interest rate of SOFR plus 43 basis points, and $700 million with a fixed interest rate of 2.650%, with maturity dates of January 11, 2024 and February 1, 2032, respectively. The proceeds were used to repay $1.05 billion outstanding under the Supplemental Facility on January 12, 2022. Mortgage Debt Total mortgage indebtedness was $5.3 billion and $5.5 billion at March 31, 2023 and December 31, 2022, respectively. Covenants Our unsecured debt agreements contain financial covenants and other non-financial covenants. The Credit Facilities contain ongoing covenants relating to total and secured leverage to capitalization value, minimum earnings before interest, taxes, depreciation, and amortization, or EBITDA, and unencumbered EBITDA coverage requirements. Payment under the Credit Facilities can be accelerated if the Operating Partnership or Simon is subject to bankruptcy proceedings or upon the occurrence of certain other events. If we were to fail to comply with these covenants, after the expiration of the applicable cure periods, the debt maturity could be accelerated or other remedies could be sought by the lender, including adjustments to the applicable interest rate. As of March 31, 2023, we were in compliance with all covenants of our unsecured debt. At March 31, 2023, our consolidated subsidiaries were the borrowers under 38 non-recourse mortgage notes secured by mortgages on 41 properties and other assets, including two separate pools of cross-defaulted and cross-collateralized mortgages encumbering a total of five properties. Under these cross-default provisions, a default under any mortgage included in the cross-defaulted pool may constitute a default under all mortgages within that pool and may lead to acceleration of the indebtedness due on each property within the pool. Certain of our secured debt instruments contain financial and other non-financial covenants which are specific to the properties that serve as collateral for that debt. If the applicable borrower under these non-recourse mortgage notes were to fail to comply with these covenants, the lender could accelerate the debt and enforce its rights against their collateral. At March 31, 2023, the applicable borrowers under these non-recourse mortgage notes were in compliance with all covenants where non-compliance could individually or in the aggregate, giving effect to applicable cross-default provisions, have a material adverse effect on our financial condition, liquidity or results of operations. Fair Value of Debt The carrying value of our variable-rate mortgages and other loans approximates their fair values. We estimate the fair values of consolidated fixed rate mortgages using cash flows discounted at current borrowing rates and other indebtedness using cash flows discounted at current market rates. We estimate the fair values of consolidated fixed rate unsecured notes using quoted market prices, or, if no quoted market prices are available, we use quoted market prices for securities with similar terms and maturities. The book value of our consolidated fixed rate mortgages and unsecured indebtedness including commercial paper was $25.0 billion and $22.6 billion as of March 31, 2023 and December 31, 2022. The fair values of these financial instruments and the related discount rate assumptions as of March 31, 2023 and December 31, 2022 are summarized as follows: March 31, December 31, 2023 2022 Fair value of consolidated fixed rate mortgages and unsecured indebtedness (in millions) $ 22,669 $ 20,020 Weighted average discount rates assumed in calculation of fair value for fixed rate mortgages 5.94 % 6.10 % Weighted average discount rates assumed in calculation of fair value for unsecured indebtedness 5.87 % 5.87 % |
Equity
Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity | |
Equity | 8. Equity During the three months ended March 31, 2023, the Operating Partnership redeemed 22,442 units from four limited partners for $2.9 million. These transactions increased Simon’s ownership interest in the Operating Partnership. On May 9, 2022, Simon's Board of Directors authorized a common stock repurchase plan. Under the plan, Simon may repurchase up to $2.0 billion of its common stock during the two-year period commencing on May 16, 2022 and ending on May 16, 2024 in the open market or in privately negotiated transactions as market conditions warrant. During the year ended December 31, 2022, Simon purchased 1,830,022 shares at an average price of $98.57 per share. As Simon repurchases shares under these programs, the Operating Partnership repurchases an equal number of units from Simon. We paid a common stock dividend of $1.80 per share for the first quarter of 2023 2022 May 2, 2023 Temporary Equity Simon Simon classifies as temporary equity those securities for which there is the possibility that Simon could be required to redeem the security for cash irrespective of the probability of such a possibility. As a result, Simon classifies one series of preferred units in the Operating Partnership and noncontrolling redeemable interests in properties in temporary equity. Each of these securities is discussed further below. Limited Partners’ Preferred Interest in the Operating Partnership and Noncontrolling Redeemable Interests in Properties redeemable at amounts in excess of fair value as of March 31, 2023 and December 31, 2022. The following table summarizes the preferred units in the Operating Partnership and the amount of the noncontrolling redeemable interests in properties as follows: As of As of March 31, December 31, 2023 2022 7.50% Cumulative Redeemable Preferred Units, 260,000 units authorized, 255,373 issued and outstanding $ 25,537 $ 25,537 Other noncontrolling redeemable interests 198,882 186,702 Limited partners’ preferred interest in the Operating Partnership and noncontrolling redeemable interests in properties $ 224,419 $ 212,239 The Operating Partnership The Operating Partnership classifies as temporary equity those securities for which there is the possibility that the Operating Partnership could be required to redeem the security for cash, irrespective of the probability of such a possibility. As a result, the Operating Partnership classifies one series of preferred units and noncontrolling redeemable interests in properties in temporary equity. The following table summarizes the preferred units and the amount of the noncontrolling redeemable interests in properties as follows: As of As of March 31, December 31, 2023 2022 7.50% Cumulative Redeemable Preferred Units, 260,000 units authorized , 255,373 issued and outstanding $ 25,537 $ 25,537 Other noncontrolling redeemable interests 198,882 186,702 Total preferred units, at liquidation value, and noncontrolling redeemable interests in properties $ 224,419 $ 212,239 Stock-Based Compensation Our long-term incentive compensation awards under our stock-based compensation plans primarily take the form of LTIP units, restricted stock units, and restricted stock. The substantial majority of these awards are market condition or performance-based, and are based on various market, corporate and business unit performance measures as further described below. The expense related to these programs, net of amounts capitalized, is included within home and regional office costs and general and administrative costs in the accompanying statements of operations and comprehensive income. LTIP units are a form of limited partnership interest issued by the Operating Partnership, which are subject to the participant maintaining employment with us through certain dates and other conditions as described in the applicable award agreements. Awarded LTIP units not earned in accordance with the conditions set forth in the applicable award agreements are forfeited. Earned and fully vested LTIP units are equivalent to units of the Operating Partnership. Participants are entitled to receive distributions on the awarded LTIP units, as defined, equal to 10% of the regular quarterly distributions paid on a unit of the Operating Partnership. As a result, we account for these LTIP units as participating securities under the two class method of computing earnings per share. These are granted under The Simon Property Group, L.P. 2019 Stock Incentive Plan, or the 2019 Plan. The grant date fair values of any LTIP units that are market-based awards are estimated using a Monte Carlo model, and the resulting fixed expense is recorded regardless of whether the market condition criteria are achieved if the participant performs the required service period. The grant date fair values of the market-based awards are being amortized into expense over the performance period, which is the grant date through the date at which the awards, if earned, become vested. The expense of the performance-based award is recorded over the performance period, which is the grant date through the date at which the awards, if earned, become vested, based on our assessment as to whether it is probable that the performance criteria will be achieved during the applicable performance periods. The grant date fair values of any restricted stock unit awards are recognized as expense over the vesting period. 2019 LTIP Program 2020 LTI Program. One-third 2021 LTI Program. 2022 LTI Program. 2023 LTI Program. units under the 2019 Plan at a grant date fair market value of $121.25 per share. These awards will vest on March 1, 2026. The $7.9 million grant date fair value of these awards is being recognized as expense over the three-year vesting period. The Compensation and Human Capital Committee approved LTIP unit grants as shown in the table below. The extent to which LTIP units were determined by the Compensation and Human Capital Committee’s to have been earned, and the aggregate grant date fair value, are as follows: LTIP Awards LTIP Units Earned Grant Date Fair Value of TSR Award Grant Date Target Value of Performance-Based Awards 2021 LTIP Awards To be determined in 2024 $5.7 million $12.2 million 2022 LTIP Awards To be determined in 2025 — $13.7 million 2023 LTIP Awards To be determined in 2026 — $23.6 million We recorded compensation expense, net of capitalization, related to the aforementioned LTIP and LTI programs of approximately $6.3 million and $5.8 million for the three months ended March 31, 2023 and 2022, respectively. Restricted Stock. We recorded compensation expense, net of capitalization, related to restricted stock of approximately $3.4 million and $2.4 million for the three months ended March 31, 2023 and 2022, respectively. |
Lease Income
Lease Income | 3 Months Ended |
Mar. 31, 2023 | |
Lease Income | |
Lease Income | 9. Lease Income Fixed lease income under our operating leases includes fixed minimum lease consideration and fixed CAM reimbursements recorded on a straight-line basis. Variable lease income includes consideration based on sales, as well as reimbursements for real estate taxes, utilities, marketing, and certain other items including negative variable lease income as discussed below. For the Three Months Ended March 31, 2023 2022 Fixed lease income $ 1,013,164 $ 959,630 Variable lease income 235,021 248,237 Total lease income $ 1,248,185 $ 1,207,867 Tenant receivables and accrued revenue in the accompanying consolidated balance sheets includes straight-line receivables of $539.5 million and $546.5 million on March 31, 2023, and December 31, 2022, respectively. In connection with rent deferrals or other accruals of unpaid rent payments, if we determine that rent payments are probable of collection, we will continue to recognize lease income on a straight-line basis over the lease term along with associated tenant receivables. However, if we determine that such deferred rent payments or other accrued but unpaid rent payments are not probable of collection, lease income will be recorded on the cash basis, with the corresponding tenant receivable and deferred rent receivable balances charged as a direct write-off against lease income in the period of the change in our collectability determination. Additionally, our assessment of collectability incorporates information regarding a tenant’s financial condition that is obtained from available financial data, the expected outcome of contractual disputes and other matters, and our communications and negotiations with the tenant. When a tenant seeks to reorganize its operations through bankruptcy proceedings, we assess the collectability of receivable balances. Our ongoing assessment incorporates, among other things, the timing of a tenant’s bankruptcy filing and our expectations of the assumptions by the tenant in bankruptcy proceedings of leases at the Company’s properties on substantially similar terms. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 10. Commitments and Contingencies Litigation We are involved from time-to-time in various legal and regulatory proceedings that arise in the ordinary course of our business, including, but not limited to, commercial disputes, environmental matters, and litigation in connection with transactions such as acquisitions and divestitures. We believe that current proceedings will not have a material adverse effect on our financial condition, liquidity, or results of operations. We record a liability when a loss is considered probable and the amount can be reasonably estimated. Lease Commitments As of March 31, 2023, we are subject to ground leases that cover all or a portion of 23 of our consolidated properties with termination dates extending through 2090, including periods for which exercising an extension option is reasonably assured. These ground leases generally require us to make fixed annual rental payments, or a fixed annual rental payment plus a percentage rent component based upon the revenues or total sales of the property. In addition, we have several regional office locations that are subject to leases with termination dates ranging from 2023 to 2025. These office leases generally require us to make fixed annual rental payments plus pay our share of common area, real estate taxes, and utility expenses. Some of our ground and office leases include escalation clauses. All of our lease arrangements are classified as operating leases. We incurred ground lease expense and office lease expense, which are included in other expense and home office and regional expense, respectively, as follows: For the Three Months Ended March 31, 2023 2022 Operating Lease Cost Fixed lease cost $ 8,123 $ 8,095 Variable lease cost 4,986 4,269 Total operating lease cost $ 13,109 $ 12,364 For the Three Months Ended March 31, 2023 2022 Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 13,090 $ 12,339 Weighted-average remaining lease term - operating leases 32.5 years 33.3 years Weighted-average discount rate - operating leases 4.88% 4.87% Minimum lease payments due under these leases for years ending December 31, excluding applicable extension options and renewal options unless reasonably certain of exercise and any sublease income, are as follows: 2023 $ 33,264 2024 30,850 2025 30,861 2026 30,875 2027 30,904 Thereafter 835,263 $ 992,017 Impact of discounting (496,444) Operating lease liabilities $ 495,573 Guarantees of Indebtedness Joint venture debt is the liability of the joint venture and is typically secured by the joint venture property, which is non-recourse to us. As of March 31, 2023 and December 31, 2022, the Operating Partnership guaranteed joint venture related mortgage indebtedness of $132.0 million and $128.0 million, respectively Mortgages guaranteed by the Operating Partnership are secured by the property of the joint venture which could be sold in order to satisfy the outstanding obligation and which has an estimated fair value in excess of the guaranteed amount. Concentration of Credit Risk Our U.S. Malls, Premium Outlets, and The Mills rely upon anchor tenants to attract customers; however, anchors do not contribute materially to our financial results as many anchors own their spaces. All material operations are within the United States and no customer or tenant accounts for 5% or more of our consolidated revenues. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Significant Accounting Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of 90 days or less to be cash and cash equivalents. Cash equivalents are carried at cost, which approximates fair value. Cash equivalents generally consist of commercial paper, bankers’ acceptances, Eurodollars, repurchase agreements, and money market deposits or securities. Financial instruments that potentially subject us to concentrations of credit risk include our cash and cash equivalents and our trade accounts receivable. We place our cash and cash equivalents with institutions of high credit quality. However, at certain times, such cash and cash equivalents are in excess of Federal Deposit Insurance Corporation and Securities Investor Protection Corporation insurance limits. |
Equity Instruments and Debt Securities | Equity Instruments and Debt Securities Equity instruments and debt securities consist primarily of equity instruments, our deferred compensation plan investments, the debt securities of our captive insurance subsidiary, and certain investments held to fund the debt service requirements of debt previously secured by investment properties. At March 31, 2023 and December 31, 2022, we had equity instruments with readily determinable fair values of $94.1 million and $73.0 million, respectively. Changes in the fair value of these equity instruments are recorded in unrealized gains (losses) in fair value of publicly traded equity instruments, net in our consolidated statements of operations and comprehensive income. At March 31, 2023 and December 31, 2022, we had equity instruments without readily determinable fair values of $237.2 million and $236.2 million, respectively, for which we have elected the measurement alternative. We regularly evaluate these investments for any impairment in their estimated fair value, as well as any observable price changes for an identical or similar equity instrument of the same issuer, and determined that no material adjustment in the carrying value was required for the three months ended March 31, 2023 and 2022. Our deferred compensation plan equity instruments are valued based upon quoted market prices. The investments have a matching liability as the amounts are fully payable to the employees that earned the compensation. Changes in value of these securities and changes to the matching liability to employees are both recognized in earnings and, as a result, there is no impact to consolidated net income. At March 31, 2023 and December 31, 2022, we held debt securities of $51.5 million and $52.3 million, respectively, in our captive insurance subsidiary. The types of securities included in the investment portfolio of our captive insurance subsidiary are typically U.S. Treasury or other U.S. government securities as well as corporate debt securities with maturities ranging from less than one year to ten years. These securities are classified as available-for-sale and are valued based upon quoted market prices or other observable inputs when quoted market prices are not available. The amortized cost of debt securities, which approximates fair value, held by our captive insurance subsidiary is adjusted for amortization of premiums and accretion of discounts to maturity. Changes in the values of these securities are recognized in accumulated other comprehensive income (loss) until the gain or loss is realized or until any unrealized loss is deemed to be other-than-temporary. We review any declines in value of these securities for other-than-temporary impairment and consider the severity and duration of any decline in value. To the extent an other-than-temporary impairment is deemed to have occurred, an impairment is recorded and a new cost basis is established. Our captive insurance subsidiary is required to maintain statutory minimum capital and surplus as well as maintain a minimum liquidity ratio. Therefore, our access to these securities may be limited. |
Fair Value Measurements | Fair Value Measurements Level 1 fair value inputs are quoted prices for identical items in active, liquid and visible markets such as stock exchanges. Level 2 fair value inputs are observable information for similar items in active or inactive markets, and appropriately consider counterparty creditworthiness in the valuations. Level 3 fair value inputs reflect our best estimate of inputs and assumptions market participants would use in pricing an asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation estimate. We have no investments for which fair value is measured on a recurring basis using Level 3 inputs. The equity instruments with readily determinable fair values we held at March 31, 2023 and December 31, 2022 were primarily classified as having Level 1 fair value inputs. In addition, we had derivative instruments which were classified as having Level 2 inputs, which consist primarily of foreign currency forward contracts, interest rate swap and cap agreements with an asset balance of $16.2 million at March 31, 2023 and $15.8 million at December 31, 2022, and a liability balance of $8.4 million and $8.6 million at March 31, 2023 and December 31, 2022, respectively. Note 7 includes a discussion of the fair value of debt measured using Level 2 inputs. Level 3 inputs to our purchase accounting and impairment analyses include our estimations of net operating results of the property, capitalization rates and discount rates. |
Noncontrolling Interests | Noncontrolling Interests Simon Details of the carrying amount of our noncontrolling interests are as follows: As of As of March 31, December 31, 2023 2022 Limited partners’ interests in the Operating Partnership $ 428,295 $ 448,076 Nonredeemable noncontrolling interests in properties, net 21,064 25,052 Total noncontrolling interests reflected in equity $ 449,359 $ 473,128 Net income attributable to noncontrolling interests (which includes nonredeemable and redeemable noncontrolling interests in consolidated properties, limited partners’ interests in the Operating Partnership and preferred distributions payable by the Operating Partnership on its outstanding preferred units) is a component of consolidated net income. In addition, the individual components of other comprehensive income (loss) are presented in the aggregate for both controlling and noncontrolling interests, with the portion attributable to noncontrolling interests deducted from comprehensive income attributable to common stockholders. The Operating Partnership Our evaluation of the appropriateness of classifying the Operating Partnership’s common units of partnership interest, or units, held by Simon and the Operating Partnership's limited partners within permanent equity considered several significant factors. First, as a limited partnership, all decisions relating to the Operating Partnership’s operations and distributions are made by Simon, acting as the Operating Partnership’s sole general partner. The decisions of the general partner are made by Simon's Board of Directors or management. The Operating Partnership has no other governance structure. Secondly, the sole asset of Simon is its interest in the Operating Partnership. As a result, a share of common stock of Simon, or common stock, if owned by the Operating Partnership, is best characterized as being similar to a treasury share and thus not an asset of the Operating Partnership. Limited partners of the Operating Partnership have the right under the Operating Partnership’s partnership agreement to exchange their units for shares of common stock or cash, as selected by Simon as the sole general partner. Accordingly, we classify units held by limited partners in permanent equity because Simon may elect to issue shares of common stock to limited partners exercising their exchange rights rather than using cash. Under the Operating Partnership’s partnership agreement, the Operating Partnership is required to redeem units held by Simon only when Simon has repurchased shares of common stock. We classify units held by Simon in permanent equity because the decision to redeem those units would be made by Simon. Net income attributable to noncontrolling interests (which includes nonredeemable and redeemable noncontrolling interests in consolidated properties) is a component of consolidated net income. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Simon The total accumulated other comprehensive income (loss) related to Simon’s currency translation adjustment was ($200.2) million and ($199.5) million as of March 31, 2023 and December 31, 2022, respectively. The reclassifications out of accumulated other comprehensive income (loss) consisted of the following: For the Three Months Ended March 31, Affected line item where 2023 2022 net income is presented Accumulated derivative gains, net $ 501 $ 387 Interest expense (63) (49) Net income attributable to noncontrolling interests $ 438 $ 338 The Operating Partnership The total accumulated other comprehensive income (loss) related to the Operating Partnership’s currency translation adjustment was ($229.1) million and ($228.3) million as of March 31, 2023 and December 31, 2022, respectively. The reclassifications out of accumulated other comprehensive income (loss) consisted of the following: For the Three Months Ended March 31, Affected line item where 2023 2022 net income is presented Accumulated derivative gains, net $ 501 $ 387 Interest expense |
Derivative Financial Instruments | Derivative Financial Instruments We record all derivatives on our consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have designated a derivative as a hedge and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. We may use a variety of derivative financial instruments in the normal course of business to selectively manage or hedge a portion of the risks associated with our indebtedness and interest payments. Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps and caps. We require that hedging derivative instruments be highly effective in reducing the risk exposure that they are designated to hedge. We formally designate any instrument that meets these hedging criteria as a hedge at the inception of the derivative contract. We have no credit-risk-related hedging or derivative activities. As of March 31, 2023, we had the following outstanding interest rate derivatives related to managing our interest rate risk: Number of Notional Interest Rate Derivative Instruments Amount Interest Rate Swaps 3 $ 500.0 Million Interest Rate Swaps 3 € 878.0 million Interest Rate Caps 3 € 119.7 million As of December 31, 2022, we had the following outstanding interest rate derivatives related to managing our interest rate risk: Number of Notional Interest Rate Derivative Instruments Amount Interest Rate Swaps 1 € 128.0 million Interest Rate Caps 5 € 319.0 million The carrying value of our interest rate swap and cap agreements, at fair value, as of March 31, 2023 and December 31, 2022 was an asset balance of $14.3 million and $13.1 million, respectively, and is included in deferred costs and other assets. We may enter into treasury lock agreements as part of an anticipated debt issuance. Upon completion of the debt issuance, the fair value of these instruments that had been recorded as part of accumulated other comprehensive income (loss) is amortized to interest expense over the life of the debt agreement. The unamortized gain on our treasury locks and terminated hedges recorded in accumulated other comprehensive income (loss) was $22.2 million as of March 31, 2023, compared to an unamortized gain of $10.9 million as of December 31, 2022. Within the next 12 months, we expect to reclassify to earnings approximately $1.1 million of gains related to terminated interest rate swaps from the current balance held in accumulated other comprehensive income (loss). We are also exposed to foreign currency risk on financings of certain foreign operations. Our intent is to offset gains and losses that occur on the underlying exposures, with gains and losses on the derivative contracts hedging these exposures. We do not enter into either interest rate protection or foreign currency rate protection agreements for speculative purposes. We are also exposed to fluctuations in foreign exchange rates on financial instruments which are denominated in foreign currencies, primarily in Yen and Euro. We use currency forward contracts, cross currency swap contracts and foreign currency denominated debt to manage our exposure to changes in foreign exchange rates on certain Yen and Euro-denominated receivables and net investments. Currency forward contracts involve fixing the Yen:USD or Euro:USD exchange rate for delivery of a specified amount of foreign currency on a specified date. The currency forward contracts are typically cash settled in U.S. dollars for their fair value at or close to their settlement date. We had the following Euro:USD forward contracts designated as net investment hedges at March 31, 2023 and December 31, 2022 (in millions): Asset (Liability) Value as of March 31, December 31, Notional Value Maturity Date 2023 2022 € 50.0 January 13, 2023 — (2.9) € 15.0 March 15, 2023 — 0.7 € 15.0 March 15, 2023 — 0.7 € 50.0 December 15, 2023 (3.2) (2.8) € 30.0 March 15, 2024 1.1 1.3 € 51.0 March 15, 2024 (3.1) (2.8) € 45.0 April 12, 2023 (0.5) (0.2) € 44.0 September 15, 2023 (0.4) (0.1) € 50.0 January 17, 2024 (0.1) — € 30.0 September 15, 2023 (0.4) — € 30.7 May 2, 2023 0.1 — Asset balances in the above table are included in deferred costs and other assets. Liability balances in the above table are included in other liabilities. We have designated certain derivative and nonderivative instruments as net investment hedges. Accordingly, we report the changes in fair value in other comprehensive income (loss). For the three months ended March 31, 2023 and 2022, we recorded gains (loss) of ($32.4) million and $44.3 million, respectively, in the cumulative translation adjustment section of the other comprehensive income (loss). Changes in the value of these forward contracts are offset by changes in the underlying hedged Euro-denominated joint venture investments. The total accumulated other comprehensive income (loss) related to Simon’s derivative activities, including our share of other comprehensive income (loss) from unconsolidated entities, was $ 41.0 million and $36.5 million as of March 31, 2023 and December 31, 2022, respectively. The total accumulated other comprehensive income (loss) related to the Operating Partnership’s derivative activities, including our share of other comprehensive income (loss) from unconsolidated entities, was $ 47.0 million and $41.8 million as of March 31, 2023 and December 31, 2022, respectively. |
New Accounting Pronouncements | New Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, “Reference Rate Reform,” which provides temporary optional expedients and exceptions to the US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. Additional optional expedients, exceptions, and clarifications were created in ASU 2021-01. The guidance is effective upon issuance and generally can be applied to any contract modifications or existing and new hedging relationships through December 31, 2024. We elected the expedients in conjunction with transitioning certain debt instruments, as discussed in note 7, to alternative benchmark indices. There was no impact on our consolidated financial statements at adoption. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Significant Accounting Policies | |
Schedule of carrying amount of noncontrolling interests | As of As of March 31, December 31, 2023 2022 Limited partners’ interests in the Operating Partnership $ 428,295 $ 448,076 Nonredeemable noncontrolling interests in properties, net 21,064 25,052 Total noncontrolling interests reflected in equity $ 449,359 $ 473,128 |
Schedule of reclassifications out of accumulated other comprehensive income (loss) | For the Three Months Ended March 31, Affected line item where 2023 2022 net income is presented Accumulated derivative gains, net $ 501 $ 387 Interest expense (63) (49) Net income attributable to noncontrolling interests $ 438 $ 338 |
Schedule of Interest Rate Derivatives | Number of Notional Interest Rate Derivative Instruments Amount Interest Rate Swaps 3 $ 500.0 Million Interest Rate Swaps 3 € 878.0 million Interest Rate Caps 3 € 119.7 million Number of Notional Interest Rate Derivative Instruments Amount Interest Rate Swaps 1 € 128.0 million Interest Rate Caps 5 € 319.0 million |
Schedule of Euro:USD forward contracts | We had the following Euro:USD forward contracts designated as net investment hedges at March 31, 2023 and December 31, 2022 (in millions): Asset (Liability) Value as of March 31, December 31, Notional Value Maturity Date 2023 2022 € 50.0 January 13, 2023 — (2.9) € 15.0 March 15, 2023 — 0.7 € 15.0 March 15, 2023 — 0.7 € 50.0 December 15, 2023 (3.2) (2.8) € 30.0 March 15, 2024 1.1 1.3 € 51.0 March 15, 2024 (3.1) (2.8) € 45.0 April 12, 2023 (0.5) (0.2) € 44.0 September 15, 2023 (0.4) (0.1) € 50.0 January 17, 2024 (0.1) — € 30.0 September 15, 2023 (0.4) — € 30.7 May 2, 2023 0.1 — |
Simon Property Group, L.P. | |
Significant Accounting Policies | |
Schedule of reclassifications out of accumulated other comprehensive income (loss) | For the Three Months Ended March 31, Affected line item where 2023 2022 net income is presented Accumulated derivative gains, net $ 501 $ 387 Interest expense |
Per Share and Per Unit Data (Ta
Per Share and Per Unit Data (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Per Share And Per Unit Data | |
Schedule of computation of basic and diluted earnings per share and basic and diluted earnings per unit | For the Three Months Ended March 31, 2023 2022 Net Income attributable to Common Stockholders — Basic and Diluted $ 451,827 $ 426,630 Weighted Average Shares Outstanding — Basic and Diluted 326,954,294 328,606,352 |
Simon Property Group, L.P. | |
Per Share And Per Unit Data | |
Schedule of computation of basic and diluted earnings per share and basic and diluted earnings per unit | For the Three Months Ended March 31, 2023 2022 Net Income attributable to Unitholders — Basic and Diluted $ 517,180 $ 487,993 Weighted Average Units Outstanding — Basic and Diluted 374,245,604 375,870,183 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities and International Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of equity method investments and share of income from such investments, balance sheet | March 31, December 31, 2023 2022 Assets: Investment properties, at cost $ 19,281,318 $ 19,256,108 Less - accumulated depreciation 8,615,876 8,490,990 10,665,442 10,765,118 Cash and cash equivalents 1,442,100 1,445,353 Tenant receivables and accrued revenue, net 504,883 546,025 Right-of-use assets, net 138,209 143,526 Deferred costs and other assets 445,744 482,375 Total assets $ 13,196,378 $ 13,382,397 Liabilities and Partners’ Deficit: Mortgages $ 14,544,401 $ 14,569,921 Accounts payable, accrued expenses, intangibles, and deferred revenue 881,365 961,984 Lease liabilities 127,840 133,096 Other liabilities 403,041 446,064 Total liabilities 15,956,647 16,111,065 Preferred units 67,450 67,450 Partners’ deficit (2,827,719) (2,796,118) Total liabilities and partners’ deficit $ 13,196,378 $ 13,382,397 Our Share of: Partners’ deficit $ (1,234,120) $ (1,232,086) Add: Excess Investment 1,212,729 1,219,117 Our net (deficit) Investment in unconsolidated entities, at equity $ (21,391) $ (12,969) |
Summary of equity method investments and share of income from such investments, statements of operations | For the Three Months Ended March 31, 2023 2022 REVENUE: Lease income $ 735,048 $ 717,768 Other income 90,046 112,585 Total revenue 825,094 830,353 OPERATING EXPENSES: Property operating 154,922 149,515 Depreciation and amortization 164,473 170,562 Real estate taxes 64,004 65,324 Repairs and maintenance 18,774 21,481 Advertising and promotion 20,710 19,318 Other 53,310 48,843 Total operating expenses 476,193 475,043 Operating Income Before Other Items 348,901 355,310 Interest expense (168,206) (144,448) Net Income $ 180,695 $ 210,862 Third-Party Investors’ Share of Net Income $ 90,259 $ 104,657 Our Share of Net Income 90,436 106,205 Amortization of Excess Investment (14,921) (15,139) Income from Unconsolidated Entities $ 75,515 $ 91,066 |
TRG | |
Summary of financial information of other platform investments | For the Three Months Ended March 31, 2023 2022 Total revenues $ 169,728 $ 162,609 Operating income before other items 74,778 61,853 Consolidated net income 44,953 38,669 Our share of net income 34,848 30,543 Amortization of excess investment (47,390) (49,025) |
Other Platform Investments | |
Summary of financial information of other platform investments | For the Three Months Ended March 31, 2023 2022 Total revenues $ 2,956,722 $ 3,140,858 Operating income before other items (17,869) (115,221) Consolidated net income (118,966) (159,412) Our share of net income (loss) (37,789) 9,889 Amortization of excess investment (1,665) (1,665) |
Europe | Klepierre | |
Summary of financial information of other platform investments | For the Three Months Ended March 31, 2023 2022 Total revenues $ 322,557 $ 293,349 Operating income before other items 105,308 75,895 Consolidated net income 82,719 46,416 Our share of net income 17,858 11,507 Amortization of excess investment (3,253) (2,796) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt | |
Schedule of fair value of financial instruments and the related discount rate assumptions | March 31, December 31, 2023 2022 Fair value of consolidated fixed rate mortgages and unsecured indebtedness (in millions) $ 22,669 $ 20,020 Weighted average discount rates assumed in calculation of fair value for fixed rate mortgages 5.94 % 6.10 % Weighted average discount rates assumed in calculation of fair value for unsecured indebtedness 5.87 % 5.87 % |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Schedule of preferred units of the Operating Partnership and the amount of the noncontrolling redeemable interests in properties | As of As of March 31, December 31, 2023 2022 7.50% Cumulative Redeemable Preferred Units, 260,000 units authorized, 255,373 issued and outstanding $ 25,537 $ 25,537 Other noncontrolling redeemable interests 198,882 186,702 Limited partners’ preferred interest in the Operating Partnership and noncontrolling redeemable interests in properties $ 224,419 $ 212,239 |
Schedule of LTIP units earned and aggregate grant date fair values adjusted for estimated forfeitures | LTIP Awards LTIP Units Earned Grant Date Fair Value of TSR Award Grant Date Target Value of Performance-Based Awards 2021 LTIP Awards To be determined in 2024 $5.7 million $12.2 million 2022 LTIP Awards To be determined in 2025 — $13.7 million 2023 LTIP Awards To be determined in 2026 — $23.6 million |
Simon Property Group, L.P. | |
Schedule of preferred units of the Operating Partnership and the amount of the noncontrolling redeemable interests in properties | As of As of March 31, December 31, 2023 2022 7.50% Cumulative Redeemable Preferred Units, 260,000 units authorized , 255,373 issued and outstanding $ 25,537 $ 25,537 Other noncontrolling redeemable interests 198,882 186,702 Total preferred units, at liquidation value, and noncontrolling redeemable interests in properties $ 224,419 $ 212,239 |
Lease Income (Tables)
Lease Income (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Lease Income | |
Schedule of lease income | For the Three Months Ended March 31, 2023 2022 Fixed lease income $ 1,013,164 $ 959,630 Variable lease income 235,021 248,237 Total lease income $ 1,248,185 $ 1,207,867 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies. | |
Schedule of lease cost | For the Three Months Ended March 31, 2023 2022 Operating Lease Cost Fixed lease cost $ 8,123 $ 8,095 Variable lease cost 4,986 4,269 Total operating lease cost $ 13,109 $ 12,364 |
Schedule of other lease information | For the Three Months Ended March 31, 2023 2022 Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 13,090 $ 12,339 Weighted-average remaining lease term - operating leases 32.5 years 33.3 years Weighted-average discount rate - operating leases 4.88% 4.87% |
Schedule of future minimum lease payments due | 2023 $ 33,264 2024 30,850 2025 30,861 2026 30,875 2027 30,904 Thereafter 835,263 $ 992,017 Impact of discounting (496,444) Operating lease liabilities $ 495,573 |
Organization (Details)
Organization (Details) | Mar. 31, 2023 property country state |
TRG | |
Real Estate Properties | |
Ownership percentage | 80% |
TRG | TRG | |
Real Estate Properties | |
Number of regional, super regional and outlet malls | 24 |
U.S. and Puerto Rico | |
Real Estate Properties | |
Number of properties | 196 |
Number of U.S. states containing property locations | state | 37 |
U.S. and Puerto Rico | Malls | |
Real Estate Properties | |
Number of properties | 93 |
U.S. and Puerto Rico | Premium Outlets | |
Real Estate Properties | |
Number of properties | 69 |
U.S. and Puerto Rico | The Mills | |
Real Estate Properties | |
Number of properties | 14 |
U.S. and Puerto Rico | Community/Lifestyle Centers | |
Real Estate Properties | |
Number of properties | 6 |
U.S. and Puerto Rico | Other shopping centers or outlet centers | |
Real Estate Properties | |
Number of properties | 14 |
Asia, Europe and Canada | Premium and Designer Outlets | |
Real Estate Properties | |
Number of properties | state | 34 |
Europe | Klepierre | |
Real Estate Properties | |
Ownership percentage | 22.40% |
Number of countries | country | 14 |
Basis of Presentation (Details)
Basis of Presentation (Details) - property | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Real Estate Properties | |||
Total number of joint venture properties | 82 | ||
Number of joint venture properties managed by the entity | 51 | ||
Number of International joint venture properties | 24 | ||
Number of joint venture properties managed by others | 31 | ||
Simon Property Group, L.P. | |||
Ownership interest: | |||
Ownership interest in the Operating Partnership (as a percent) | 87.40% | 87.40% | |
Simon Property Group, L.P. | Weighted average | |||
Ownership interest: | |||
Ownership interest in the Operating Partnership (as a percent) | 87.40% | 87.40% | |
Wholly owned properties | |||
Real Estate Properties | |||
Number of properties | 130 | ||
Partially owned properties | |||
Real Estate Properties | |||
Number of properties | 18 |
Significant Accounting Polici_4
Significant Accounting Policies - Equity Instruments and Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Equity Instruments and Investments | ||
Equity instruments with readily determinable fair value | $ 94.1 | $ 73 |
Equity instruments without readily determinable fair values | 237.2 | 236.2 |
Debt securities of our captive insurance companies | $ 51.5 | $ 52.3 |
Debt Securities | Securities in captive insurance subsidiary portfolio | Maximum | ||
Equity Instruments and Investments | ||
Short-term investment maturity period | 1 year | |
Investment maturity period | 10 years |
Significant Accounting Polici_5
Significant Accounting Policies - Fair Value Measurements (Details) $ in Millions | Mar. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) |
Fair Value Measurements | ||
Number of investments for which fair value is measured on a recurring basis using Level 3 inputs | item | 0 | |
Level 2 | Recurring | ||
Fair Value Measurements | ||
Interest rate swap agreements and foreign currency forward contracts, gross asset balance | $ 16.2 | $ 15.8 |
Interest rate swap agreements and foreign currency forward contracts, gross liability balance | $ 8.4 | $ 8.6 |
Significant Accounting Polici_6
Significant Accounting Policies - Noncontrolling Interests, Simon Property Group, Inc. (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Significant Accounting Policies | ||
Limited partners' interests in the Operating Partnership | $ 428,295 | $ 448,076 |
Nonredeemable noncontrolling interests in properties, net | 21,064 | 25,052 |
Total noncontrolling interests reflected in equity | $ 449,359 | $ 473,128 |
Significant Accounting Polici_7
Significant Accounting Policies - Reclassification Out of AOCI, Simon Property Group, Inc. (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Significant Accounting Policies | |||
Total accumulated other comprehensive income (loss) | $ (200,200) | $ (199,500) | |
Interest expense | (199,429) | $ (185,159) | |
Net income attributable to noncontrolling interests | (66,594) | (60,846) | |
NET INCOME ATTRIBUTABLE TO UNITHOLDERS | 451,827 | 426,630 | |
Accumulated derivative losses, net, including noncontrolling interests | Amount reclassified from accumulated other comprehensive income (loss) | |||
Significant Accounting Policies | |||
Interest expense | 501 | 387 | |
Accumulated derivative losses, attributable to noncontrolling interests | Amount reclassified from accumulated other comprehensive income (loss) | |||
Significant Accounting Policies | |||
Net income attributable to noncontrolling interests | (63) | (49) | |
Accumulated derivative gains (losses), net | Amount reclassified from accumulated other comprehensive income (loss) | |||
Significant Accounting Policies | |||
NET INCOME ATTRIBUTABLE TO UNITHOLDERS | $ 438 | $ 338 |
Significant Accounting Polici_8
Significant Accounting Policies - Reclassification Out Of AOCI, Simon Property Group, L.P. (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Significant Accounting Policies | |||
Total accumulated other comprehensive income (loss) | $ (200,200) | $ (199,500) | |
Interest expense | (199,429) | $ (185,159) | |
Simon Property Group, L.P. | |||
Significant Accounting Policies | |||
Total accumulated other comprehensive income (loss) | (229,100) | $ (228,300) | |
Interest expense | (199,429) | (185,159) | |
Accumulated derivative gains (losses), net | Simon Property Group, L.P. | Amount reclassified from accumulated other comprehensive income (loss) | |||
Significant Accounting Policies | |||
Interest expense | $ 501 | $ 387 |
Significant Accounting Polici_9
Significant Accounting Policies - Derivative Financial Instruments (Details) € in Millions, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2023 USD ($) DerivativeInstrument | Mar. 31, 2022 USD ($) | Mar. 31, 2023 EUR (€) DerivativeInstrument | Dec. 31, 2022 USD ($) DerivativeInstrument | Dec. 31, 2022 EUR (€) DerivativeInstrument | |
Derivative Financial Instruments | |||||
Number of credit-risk-related hedging or derivative activities | DerivativeInstrument | 0 | 0 | |||
Unamortized gain on treasury locks and terminated hedges | $ 22.2 | $ 10.9 | |||
Amount expected to be reclassified from accumulated other comprehensive loss to earnings within the next year | 1.1 | ||||
Gross accumulated other comprehensive income (loss) related to derivative activities | 41 | 36.5 | |||
Gains (losses) of cumulative translation adjustment | (32.4) | $ 44.3 | |||
Interest rate swap | Deferred costs and other assets | |||||
Derivative Financial Instruments | |||||
Interest rate derivative liabilities, fair value | 14.3 | 13.1 | |||
USD-Euro currency forward contract | January 13, 2023 | Net Investment Hedging | Designated as Hedging Instrument | |||||
Derivative Financial Instruments | |||||
Notional Amount | € | € 50 | ||||
Forward contract net, fair value | (2.9) | ||||
USD-Euro currency forward contract | March 15, 2023 | Net Investment Hedging | Designated as Hedging Instrument | |||||
Derivative Financial Instruments | |||||
Notional Amount | € | 15 | ||||
Forward contract net, fair value | 0.7 | ||||
USD-Euro currency forward contract | March 15, 2023. | Net Investment Hedging | Designated as Hedging Instrument | |||||
Derivative Financial Instruments | |||||
Notional Amount | € | 15 | ||||
Forward contract net, fair value | 0.7 | ||||
USD-Euro currency forward contract | December 15, 2023 | Net Investment Hedging | Designated as Hedging Instrument | |||||
Derivative Financial Instruments | |||||
Notional Amount | € | € 50 | 50 | |||
Forward contract net, fair value | (3.2) | (2.8) | |||
USD-Euro currency forward contract | March 15, 2024 | Net Investment Hedging | Designated as Hedging Instrument | |||||
Derivative Financial Instruments | |||||
Notional Amount | € | 30 | 30 | |||
Forward contract net, fair value | 1.1 | 1.3 | |||
USD-Euro currency forward contract | March 15, 2024. | Net Investment Hedging | Designated as Hedging Instrument | |||||
Derivative Financial Instruments | |||||
Notional Amount | € | 51 | 51 | |||
Forward contract net, fair value | (3.1) | (2.8) | |||
USD-Euro currency forward contract | April 12, 2023 | Net Investment Hedging | Designated as Hedging Instrument | |||||
Derivative Financial Instruments | |||||
Notional Amount | € | 45 | 45 | |||
Forward contract net, fair value | (0.5) | (0.2) | |||
USD-Euro currency forward contract | September 15, 2023 | Net Investment Hedging | Designated as Hedging Instrument | |||||
Derivative Financial Instruments | |||||
Notional Amount | € | 44 | € 44 | |||
Forward contract net, fair value | (0.4) | $ (0.1) | |||
USD-Euro currency forward contract | January 17, 2024 | Net Investment Hedging | Designated as Hedging Instrument | |||||
Derivative Financial Instruments | |||||
Notional Amount | € | 50 | ||||
Forward contract net, fair value | (0.1) | ||||
USD-Euro currency forward contract | September 15, 2023 | Net Investment Hedging | Designated as Hedging Instrument | |||||
Derivative Financial Instruments | |||||
Notional Amount | € | 30 | ||||
Forward contract net, fair value | (0.4) | ||||
USD-Euro currency forward contract | May 2, 2023 | Net Investment Hedging | Designated as Hedging Instrument | |||||
Derivative Financial Instruments | |||||
Notional Amount | € | € 30.7 | ||||
Forward contract net, fair value | $ 0.1 | ||||
USD | Interest rate swap | |||||
Derivative Financial Instruments | |||||
Number of Instruments | DerivativeInstrument | 3 | 3 | |||
Notional Amount | $ 500 | ||||
Euro | Interest rate swap | |||||
Derivative Financial Instruments | |||||
Number of Instruments | DerivativeInstrument | 3 | 3 | 1 | 1 | |
Notional Amount | € | € 878 | € 128 | |||
Euro | Interest rate cap | |||||
Derivative Financial Instruments | |||||
Number of Instruments | DerivativeInstrument | 3 | 3 | 5 | 5 | |
Notional Amount | € | € 119.7 | € 319 | |||
Simon Property Group, L.P. | |||||
Derivative Financial Instruments | |||||
Gross accumulated other comprehensive income (loss) related to derivative activities | $ 47 | $ 41.8 |
Real Estate Acquisitions and _2
Real Estate Acquisitions and Dispositions (Details) $ in Millions | Jun. 17, 2022 USD ($) property |
Gloucester Premium Outlets | |
Acquisitions | |
Cash purchase price for acquisition | $ 14 |
Gloucester Premium Outlets | Mortgage bearing 3.29% Interest | |
Acquisitions | |
Variable mortgage loan | $ 85.7 |
Variable rate of interest | 3.29% |
Consolidated properties | Retail properties | Disposed by Sales | |
Dispositions | |
Number of properties disposed of during the period | property | 1 |
Proceeds from sale and disposal | $ 59 |
Loss on disposition of interest in properties | $ 15.6 |
Per Share and Per Unit Data (De
Per Share and Per Unit Data (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Per Share And Per Unit Data | ||
Net Income attributable to Common Stockholders - Basic | $ 451,827 | $ 426,630 |
Net Income attributable to Common Stockholders - Diluted | $ 451,827 | $ 426,630 |
Weighted Average Shares Outstanding - Basic | 326,954,294 | 328,606,352 |
Weighted Average Shares Outstanding - Diluted | 326,954,294 | 328,606,352 |
Simon Property Group, L.P. | ||
Per Share And Per Unit Data | ||
Net Income attributable to Common Stockholders - Basic | $ 517,180 | $ 487,993 |
Net Income attributable to Common Stockholders - Diluted | $ 517,180 | $ 487,993 |
Weighted Average Shares Outstanding - Basic | 374,245,604 | 375,870,183 |
Weighted Average Shares Outstanding - Diluted | 374,245,604 | 375,870,183 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities and International Investments - Real Estate Joint Ventures and Investments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) property | Mar. 31, 2023 USD ($) property | |
Investment in Unconsolidated Entities | ||
Total number of joint venture properties | property | 82 | |
Mortgages and unsecured indebtedness | $ 24,960,286 | $ 25,569,968 |
Unconsolidated properties | Discontinued Operations, Disposed of by Means Other than Sale [Member] | Retail properties | ||
Investment in Unconsolidated Entities | ||
Number of properties disposed of during the period | property | 2 | |
Gain on interest in unconsolidated entities | $ 19,900 | |
Unconsolidated properties | Non-recourse $99.6M Mortgage | Discontinued Operations, Disposed of by Means Other than Sale [Member] | Retail properties | ||
Investment in Unconsolidated Entities | ||
Mortgages and unsecured indebtedness | 99,600 | |
Unconsolidated properties | Non-recourse $83.1M Mortgage | Discontinued Operations, Disposed of by Means Other than Sale [Member] | Retail properties | ||
Investment in Unconsolidated Entities | ||
Mortgages and unsecured indebtedness | 83,100 | |
Construction and other related party loans | ||
Investment in Unconsolidated Entities | ||
Loans to related party | $ 112,000 | $ 109,400 |
Investments in Unconsolidated_4
Investments in Unconsolidated Entities and International Investments - Unconsolidated Property Transactions (Details) $ in Thousands | 3 Months Ended | |||||
Dec. 19, 2022 USD ($) | Dec. 20, 2021 USD ($) | Mar. 31, 2023 USD ($) property | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Investment in Unconsolidated Entities | ||||||
Payments for acquisitions | $ 27,712 | |||||
Total assets | 33,297,796 | $ 33,011,274 | ||||
Total liabilities | 29,620,505 | 29,187,383 | ||||
Noncontrolling interests | 449,359 | 473,128 | ||||
Total revenue | 1,350,849 | $ 1,295,922 | ||||
Operating income before other items | 662,723 | 620,391 | ||||
Consolidated net income | 519,255 | 488,310 | ||||
TRG | ||||||
Investment in Unconsolidated Entities | ||||||
Total revenue | 169,728 | 162,609 | ||||
Operating income before other items | 74,778 | 61,853 | ||||
Consolidated net income | 44,953 | 38,669 | ||||
Our share of net income (loss) | 34,848 | 30,543 | ||||
Amortization of Excess Investment | (47,390) | (49,025) | ||||
Other Platform Investments | ||||||
Investment in Unconsolidated Entities | ||||||
Total revenue | 2,956,722 | 3,140,858 | ||||
Operating income before other items | (17,869) | (115,221) | ||||
Consolidated net income | (118,966) | (159,412) | ||||
Our share of net income (loss) | (37,789) | 9,889 | ||||
Amortization of Excess Investment | (1,665) | (1,665) | ||||
Simon Property Group, L.P. | ||||||
Investment in Unconsolidated Entities | ||||||
Payments for acquisitions | 27,712 | |||||
Total assets | 33,297,796 | 33,011,274 | ||||
Total liabilities | 29,620,505 | 29,187,383 | ||||
Total revenue | 1,350,849 | 1,295,922 | ||||
Operating income before other items | 662,723 | 620,391 | ||||
Consolidated net income | $ 519,255 | $ 488,310 | ||||
Jamestown | ||||||
Investment in Unconsolidated Entities | ||||||
Ownership interest (as a percent) | 50% | |||||
Payments for acquisitions | $ 173,400 | |||||
TRG | ||||||
Investment in Unconsolidated Entities | ||||||
Ownership interest (as a percent) | 80% | |||||
Aggregate investment in ventures | $ 3,062,030 | 3,074,345 | ||||
TRG | Series A Cumulative Preferred Shares | ||||||
Investment in Unconsolidated Entities | ||||||
Preferred stock stated dividend rate (as a percent) | 6.38% | |||||
Issuance of preferred units | $ 362,500 | |||||
TRG | Simon Property Group, L.P. | ||||||
Investment in Unconsolidated Entities | ||||||
Aggregate investment in ventures | $ 3,062,030 | 3,074,345 | ||||
TRG | TRG | ||||||
Investment in Unconsolidated Entities | ||||||
Number of regional, super regional and outlet malls | property | 24 | |||||
JC Penney [Member] | ||||||
Investment in Unconsolidated Entities | ||||||
Ownership interest (as a percent) | 41.67% | |||||
SPARC Group | ||||||
Investment in Unconsolidated Entities | ||||||
Ownership interest (as a percent) | 50% | |||||
ABG | ||||||
Investment in Unconsolidated Entities | ||||||
Ownership interest (as a percent) | 12.30% | |||||
Payments for acquisitions | $ 100,000 | |||||
Aggregate investment in ventures | 98,800 | $ 102,700 | ||||
Gain (Loss) on Exchange of Equity Interests | 159,000 | 159,800 | ||||
Deferred Taxes | $ 39,700 | $ 47,900 | ||||
Pre-tax gain | 18,800 | |||||
Tax expense | $ 8,000 | |||||
RGG | ||||||
Investment in Unconsolidated Entities | ||||||
Ownership interest (as a percent) | 45% |
Investments in Unconsolidated_5
Investments in Unconsolidated Entities and International Investments - European Investments (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) property $ / shares shares | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) property | |
Investment in Unconsolidated Entities | |||
Total revenue | $ 1,350,849 | $ 1,295,922 | |
Operating income before other items | 662,723 | 620,391 | |
Consolidated Net Income | 519,255 | 488,310 | |
Klepierre | |||
Investment in Unconsolidated Entities | |||
Investment, in equity | $ 1,541,743 | $ 1,561,112 | |
European Joint Venture | Designer Outlet properties | |||
Investment in Unconsolidated Entities | |||
Number of properties | property | 11 | 11 | |
European Joint Venture | Designer Outlet properties | Minimum | |||
Investment in Unconsolidated Entities | |||
Ownership interest (as a percent) | 23% | ||
European Joint Venture | Designer Outlet properties | Maximum | |||
Investment in Unconsolidated Entities | |||
Ownership interest (as a percent) | 94% | ||
European Property Management and Development | Designer Outlet properties | |||
Investment in Unconsolidated Entities | |||
Ownership interest (as a percent) | 50% | ||
Europe | Klepierre | |||
Investment in Unconsolidated Entities | |||
Total revenue | $ 322,557 | 293,349 | |
Operating income before other items | 105,308 | 75,895 | |
Consolidated Net Income | 82,719 | 46,416 | |
Our Share of Net Income | 17,858 | 11,507 | |
Amortization of Excess Investment | $ (3,253) | $ (2,796) | |
Europe | Designer Outlet properties | |||
Investment in Unconsolidated Entities | |||
Number of properties consolidated by entity | property | 7 | ||
Europe | Klepierre | |||
Investment in Unconsolidated Entities | |||
Shares owned | shares | 63,924,148 | ||
Ownership interest (as a percent) | 22.40% | ||
Quoted market price per share (in dollars per share) | $ / shares | $ 22.68 | ||
Europe | Value Retail PLC | |||
Investment in Unconsolidated Entities | |||
Number of luxury outlets owned and operated | property | 9 | ||
Number of outlets in which the entity has a minority direct ownership | property | 3 | ||
Europe | Value Retail PLC | Deferred costs and other assets | |||
Investment in Unconsolidated Entities | |||
Value of equity instruments | $ 140,800 | $ 140,800 |
Investments in Unconsolidated_6
Investments in Unconsolidated Entities and International Investments - Asian Joint Ventures (Details) - Premium Outlets - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Japan | Mitsubishi Estate Co., Ltd. | ||
Investment in Unconsolidated Entities | ||
Ownership percentage | 40% | 40% |
Our net (deficit) Investment in unconsolidated entities, at equity | $ 217.5 | $ 206.3 |
South Korea | Shinsegae International Co | ||
Investment in Unconsolidated Entities | ||
Ownership percentage | 50% | 50% |
Our net (deficit) Investment in unconsolidated entities, at equity | $ 204 | $ 199.5 |
Investments in Unconsolidated_7
Investments in Unconsolidated Entities and International Investments - Combined Balance Sheets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
ASSETS: | ||
Investment properties, at cost | $ 38,505,497 | $ 38,326,912 |
Less - accumulated depreciation | 16,823,305 | 16,563,749 |
Investment properties, at cost, net | 21,682,192 | 21,763,163 |
Cash and cash equivalents | 1,155,423 | 621,628 |
Tenant receivables and accrued revenue, net | 779,702 | 823,540 |
Right-of-use assets, net | 494,591 | 496,930 |
Deferred costs and other assets | 1,141,583 | 1,159,293 |
Total assets | 33,297,796 | 33,011,274 |
Liabilities and Partners' Deficit: | ||
Mortgages | 25,569,968 | 24,960,286 |
Accounts payable, accrued expenses, intangibles, and deferred revenues | 1,351,870 | 1,491,583 |
Lease liabilities | 495,573 | 497,953 |
Other liabilities | 497,210 | 535,736 |
Total liabilities | 29,620,505 | 29,187,383 |
Preferred units | 224,419 | 212,239 |
Total liabilities and equity | 33,297,796 | 33,011,274 |
Unconsolidated properties | Equity Method Investees excluding Jamestown, Klepierre, TRG and other platform investments | ||
Our Share of: | ||
Partners' deficit | (1,234,120) | (1,232,086) |
Add: Excess Investment | 1,212,729 | 1,219,117 |
Our net (deficit) Investment in unconsolidated entities, at equity | (21,391) | (12,969) |
Unconsolidated properties | Equity Method Investees excluding Jamestown, Klepierre, TRG and other platform investments | ||
ASSETS: | ||
Investment properties, at cost | 19,281,318 | 19,256,108 |
Less - accumulated depreciation | 8,615,876 | 8,490,990 |
Investment properties, at cost, net | 10,665,442 | 10,765,118 |
Cash and cash equivalents | 1,442,100 | 1,445,353 |
Tenant receivables and accrued revenue, net | 504,883 | 546,025 |
Right-of-use assets, net | 138,209 | 143,526 |
Deferred costs and other assets | 445,744 | 482,375 |
Total assets | 13,196,378 | 13,382,397 |
Liabilities and Partners' Deficit: | ||
Mortgages | 14,544,401 | 14,569,921 |
Accounts payable, accrued expenses, intangibles, and deferred revenues | 881,365 | 961,984 |
Lease liabilities | 127,840 | 133,096 |
Other liabilities | 403,041 | 446,064 |
Total liabilities | 15,956,647 | 16,111,065 |
Preferred units | 67,450 | 67,450 |
Partners' deficit | (2,827,719) | (2,796,118) |
Total liabilities and equity | $ 13,196,378 | $ 13,382,397 |
Unconsolidated properties | Maximum | ||
Our Share of: | ||
Estimated life of investment property | 40 years |
Investments in Unconsolidated_8
Investments in Unconsolidated Entities and International Investments - Combined Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
REVENUE: | ||
Lease income | $ 1,248,185 | $ 1,207,867 |
Other income | 73,715 | 60,468 |
Total revenue | 1,350,849 | 1,295,922 |
EXPENSES: | ||
Property operating | 111,748 | 103,664 |
Depreciation and amortization | 307,059 | 310,163 |
Real estate taxes | 111,159 | 111,691 |
Repairs and maintenance | 22,174 | 22,304 |
Advertising and promotion | 24,159 | 25,263 |
Other | 45,900 | 42,416 |
Total operating expenses | 688,126 | 675,531 |
OPERATING INCOME BEFORE OTHER ITEMS | 662,723 | 620,391 |
Interest expense | (199,429) | (185,159) |
Gain on sale or disposal of, or recovery on, assets and interests in unconsolidated entities, net | 1,491 | |
CONSOLIDATED NET INCOME | 519,255 | 488,310 |
Income from Unconsolidated Entities | 21,900 | 81,184 |
Unconsolidated properties | Equity Method Investees excluding Jamestown, Klepierre, TRG and other platform investments | ||
EXPENSES: | ||
Third-Party Investors' Share of Net Income | 90,259 | 104,657 |
Our Share of Net Income | 90,436 | 106,205 |
Amortization of Excess Investment | (14,921) | (15,139) |
Income from Unconsolidated Entities | 75,515 | 91,066 |
Unconsolidated properties | Equity Method Investees excluding Jamestown, Klepierre, TRG and other platform investments | ||
REVENUE: | ||
Lease income | 735,048 | 717,768 |
Other income | 90,046 | 112,585 |
Total revenue | 825,094 | 830,353 |
EXPENSES: | ||
Property operating | 154,922 | 149,515 |
Depreciation and amortization | 164,473 | 170,562 |
Real estate taxes | 64,004 | 65,324 |
Repairs and maintenance | 18,774 | 21,481 |
Advertising and promotion | 20,710 | 19,318 |
Other | 53,310 | 48,843 |
Total operating expenses | 476,193 | 475,043 |
OPERATING INCOME BEFORE OTHER ITEMS | 348,901 | 355,310 |
Interest expense | (168,206) | (144,448) |
CONSOLIDATED NET INCOME | $ 180,695 | $ 210,862 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Thousands, € in Millions | 3 Months Ended | |||||||||||
Nov. 17, 2022 USD ($) | Nov. 17, 2022 EUR (€) | Nov. 16, 2022 USD ($) | Nov. 16, 2022 EUR (€) | Jan. 12, 2022 USD ($) | Jan. 11, 2022 USD ($) | Mar. 31, 2023 USD ($) property item | Mar. 14, 2023 USD ($) | Mar. 13, 2023 USD ($) | Mar. 08, 2023 USD ($) | Jan. 10, 2023 EUR (€) | Dec. 31, 2022 USD ($) | |
Debt | ||||||||||||
Long-term debt | $ 25,569,968 | $ 24,960,286 | ||||||||||
Simon Property Group, L.P. | ||||||||||||
Debt | ||||||||||||
Long-term debt | 25,569,968 | 24,960,286 | ||||||||||
Secured Debt | Mortgages | ||||||||||||
Debt | ||||||||||||
Long-term debt | $ 5,300,000 | $ 5,500,000 | ||||||||||
Debt covenants | ||||||||||||
Number of non-recourse mortgage notes under which the Company and subsidiaries are borrowers | item | 38 | |||||||||||
Number of properties pledged as collateral | item | 41 | |||||||||||
Number of cross-defaulted and cross-collateralized mortgage pools | item | 2 | |||||||||||
Total number of properties pledged as collateral for cross defaulted and cross collateralized mortgages | property | 5 | |||||||||||
Unsecured Debt | Senior unsecured notes | Simon Property Group, L.P. | ||||||||||||
Debt | ||||||||||||
Long-term debt | $ 20,400,000 | |||||||||||
Amount of debt redeemed | $ 500,000 | |||||||||||
Debt repaid | $ 777,100 | € 750 | ||||||||||
Unsecured Debt | Senior Unsecured Notes Maturing March 2033 | Simon Property Group, L.P. | ||||||||||||
Debt | ||||||||||||
Debt issued | $ 650,000 | |||||||||||
Interest rate on debt (as a percent) | 5.50% | |||||||||||
Unsecured Debt | Senior Unsecured Notes Maturing March 2053 | Simon Property Group, L.P. | ||||||||||||
Debt | ||||||||||||
Debt issued | $ 650,000 | |||||||||||
Interest rate on debt (as a percent) | 5.85% | |||||||||||
Unsecured Debt | Senior Unsecured Notes Maturing February 2032 | Simon Property Group, L.P. | ||||||||||||
Debt | ||||||||||||
Debt issued | $ 700,000 | |||||||||||
Interest rate on debt (as a percent) | 2.65% | |||||||||||
Unsecured Debt | Senior Unsecured Notes Maturing January 2024 | Simon Property Group, L.P. | SOFR | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 0.43% | |||||||||||
Debt issued | $ 500,000 | |||||||||||
Unsecured Debt | Commercial Paper | Simon Property Group, L.P. | ||||||||||||
Debt | ||||||||||||
Long-term debt | 0 | |||||||||||
Maximum borrowing capacity | 2,000,000 | |||||||||||
Unsecured Debt | Credit Facilities | Simon Property Group, L.P. | ||||||||||||
Debt | ||||||||||||
Available borrowing capacity | 7,600,000 | |||||||||||
Maximum amount outstanding during period | 940,800 | |||||||||||
Credit facility, weighted average amount outstanding | 940,800 | |||||||||||
Letters of credit outstanding | 9,900 | |||||||||||
Unsecured Debt | Credit Facility and Term Facility | Simon Property Group, L.P. | ||||||||||||
Debt | ||||||||||||
Maximum borrowing capacity | 6,000,000 | |||||||||||
Additional borrowing capacity | 1,000,000 | |||||||||||
Unsecured Debt | Credit Facility | Simon Property Group, L.P. | ||||||||||||
Debt | ||||||||||||
Credit facility, amount outstanding | 125,000 | |||||||||||
Maximum borrowing capacity | $ 5,000,000 | $ 5,000,000 | $ 4,000,000 | |||||||||
Additional extension period | item | 2 | |||||||||||
Debt extension period | 6 months | |||||||||||
Unsecured Debt | Credit Facility | Simon Property Group, L.P. | Fed Funds Effective Rate | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 0.50% | |||||||||||
Unsecured Debt | Credit Facility | Simon Property Group, L.P. | Adjusted Term One-Month SOFR | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 1% | |||||||||||
Unsecured Debt | Credit Facility | Simon Property Group, L.P. | SOFR | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 0.725% | |||||||||||
Unsecured Debt | Credit Facility | Minimum | Simon Property Group, L.P. | ||||||||||||
Debt | ||||||||||||
Facility fee (in percentage) | 0.10% | |||||||||||
Unsecured Debt | Credit Facility | Minimum | Simon Property Group, L.P. | Base Rate | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 0% | |||||||||||
Unsecured Debt | Credit Facility | Minimum | Simon Property Group, L.P. | SOFR | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 0.65% | |||||||||||
Unsecured Debt | Credit Facility | Maximum | Simon Property Group, L.P. | ||||||||||||
Debt | ||||||||||||
Percentage of borrowings in currencies other than the U.S. dollar | 97% | |||||||||||
Facility fee (in percentage) | 0.30% | |||||||||||
Unsecured Debt | Credit Facility | Maximum | Simon Property Group, L.P. | Base Rate | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 0.40% | |||||||||||
Unsecured Debt | Credit Facility | Maximum | Simon Property Group, L.P. | SOFR | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 1.40% | |||||||||||
Unsecured Debt | Supplemental Facility | Simon Property Group, L.P. | ||||||||||||
Debt | ||||||||||||
Amount drawn | $ 779,000 | € 750 | ||||||||||
Credit facility, amount outstanding | $ 815,800 | |||||||||||
Maximum borrowing capacity | 3,500,000 | |||||||||||
Credit facility, amount repaid | $ 1,050,000 | |||||||||||
Optional expanded maximum borrowing capacity | $ 4,500,000 | |||||||||||
Unsecured Debt | Supplemental Facility | Simon Property Group, L.P. | Interest rate swap | ||||||||||||
Debt | ||||||||||||
Notional Amount | € | € 750 | |||||||||||
Fixed exchange rate | 3.81% | |||||||||||
Unsecured Debt | Supplemental Facility | Simon Property Group, L.P. | Fed Funds Effective Rate | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 0.50% | |||||||||||
Unsecured Debt | Supplemental Facility | Simon Property Group, L.P. | Adjusted Term One-Month SOFR | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 1% | |||||||||||
Unsecured Debt | Supplemental Facility | Simon Property Group, L.P. | SOFR | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 0.725% | |||||||||||
Unsecured Debt | Supplemental Facility | Minimum | Simon Property Group, L.P. | ||||||||||||
Debt | ||||||||||||
Facility fee (in percentage) | 0.10% | |||||||||||
Unsecured Debt | Supplemental Facility | Minimum | Simon Property Group, L.P. | Base Rate | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 0% | |||||||||||
Unsecured Debt | Supplemental Facility | Minimum | Simon Property Group, L.P. | SOFR | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 0.65% | |||||||||||
Unsecured Debt | Supplemental Facility | Maximum | Simon Property Group, L.P. | ||||||||||||
Debt | ||||||||||||
Percentage of borrowings in currencies other than the U.S. dollar | 100% | |||||||||||
Facility fee (in percentage) | 0.30% | |||||||||||
Unsecured Debt | Supplemental Facility | Maximum | Simon Property Group, L.P. | Base Rate | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 0.40% | |||||||||||
Unsecured Debt | Supplemental Facility | Maximum | Simon Property Group, L.P. | SOFR | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 1.40% |
Debt - Fair Value (Details)
Debt - Fair Value (Details) $ in Millions | Mar. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) item |
Fixed rate mortgages and unsecured indebtedness | Book value | ||
Fair Value of Debt | ||
Fair value of consolidated fixed rate mortgages and unsecured indebtedness | $ | $ 25,000 | $ 22,600 |
Fixed rate mortgages and unsecured indebtedness | Fair value | ||
Fair Value of Debt | ||
Fair value of consolidated fixed rate mortgages and unsecured indebtedness | $ | $ 22,669 | $ 20,020 |
Discount Rate | Weighted average | Fixed rate mortgages | ||
Fair Value of Debt | ||
Debt percentage- measurement input | item | 0.0594 | 0.0610 |
Discount Rate | Weighted average | Unsecured Debt | ||
Fair Value of Debt | ||
Debt percentage- measurement input | item | 0.0587 | 0.0587 |
Equity - Shares or Units Activi
Equity - Shares or Units Activity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
May 02, 2023 $ / shares | May 09, 2022 USD ($) | Mar. 31, 2023 USD ($) item $ / shares shares | Mar. 31, 2022 $ / shares shares | Dec. 31, 2022 $ / shares shares | |
Equity | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.80 | $ 1.65 | |||
Redemption of units | shares | 22,442 | 1,000 | |||
Common stock authorized for repurchase | $ | $ 2,000,000 | ||||
Period common stock is authorized to repurchase | 2 years | ||||
Shares repurchased (in shares) | shares | 1,830,022 | ||||
Average share price repurchased (in dollars per share) | $ 98.57 | ||||
Subsequent Event | |||||
Equity | |||||
Dividends declared per common share (in dollars per share) | $ 1.85 | ||||
Simon Property Group, L.P. | |||||
Equity | |||||
Redemption of units | shares | 22,442 | 1,000 | |||
Distributions paid per unit (in dollars per unit) | $ 1.80 | $ 1.65 | |||
Simon Property Group, L.P. | Subsequent Event | |||||
Equity | |||||
Distribution declared per unit (in dollars per share) | $ 1.85 | ||||
Simon Property Group, L.P. | Limited Partners | |||||
Equity | |||||
Redemption of units | shares | 22,442 | ||||
Number of limited partners whose common stock redeemed | item | 4 | ||||
Value of units redeemed | $ | $ 2,900 |
Equity - Temporary Equity (Deta
Equity - Temporary Equity (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) item shares | Dec. 31, 2022 USD ($) item shares | |
Redeemable preferred stock | ||
Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | $ | $ 224,419 | $ 212,239 |
Simon Property Group, L.P. | ||
Redeemable preferred stock | ||
Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | $ | $ 224,419 | $ 212,239 |
7.5% Cumulative Redeemable Preferred Units | ||
Redeemable preferred stock | ||
Number of series of units classified into temporary equity | item | 1 | |
Noncontrolling interests redeemable at amounts in excess of fair value | item | 0 | 0 |
Preferred stock stated dividend rate (as a percent) | 7.50% | 7.50% |
Temporary equity, shares authorized | shares | 260,000 | 260,000 |
Temporary equity, shares issued | shares | 255,373 | 255,373 |
Temporary equity, shares outstanding | shares | 255,373 | 255,373 |
Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | $ | $ 25,537 | $ 25,537 |
7.5% Cumulative Redeemable Preferred Units | Simon Property Group, L.P. | ||
Redeemable preferred stock | ||
Number of series of units classified into temporary equity | item | 1 | 1 |
Preferred stock stated dividend rate (as a percent) | 7.50% | 7.50% |
Temporary equity, shares authorized | shares | 260,000 | 260,000 |
Temporary equity, shares issued | shares | 255,373 | 255,373 |
Temporary equity, shares outstanding | shares | 255,373 | 255,373 |
Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | $ | $ 25,537 | $ 25,537 |
Other noncontrolling redeemable interest | ||
Redeemable preferred stock | ||
Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | $ | 198,882 | 186,702 |
Other noncontrolling redeemable interest | Simon Property Group, L.P. | ||
Redeemable preferred stock | ||
Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | $ | $ 198,882 | $ 186,702 |
Equity - Stock Based Compensati
Equity - Stock Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Apr. 01, 2023 | Mar. 28, 2023 | Mar. 01, 2023 | Mar. 18, 2022 | Mar. 11, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted stock | |||||||||||
Stock-based incentive plan awards | |||||||||||
Compensation expense, net of capitalization | $ 3.4 | $ 2.4 | |||||||||
Restricted stock | Employees | |||||||||||
Stock-based incentive plan awards | |||||||||||
Vesting service period | 3 years | ||||||||||
Awards granted (in units) | 218,456 | ||||||||||
Weighted average fair value of shares granted during the year (in dollars per share) | $ 111.97 | ||||||||||
Restricted stock | Non-employee Director | |||||||||||
Stock-based incentive plan awards | |||||||||||
Vesting service period | 1 year | ||||||||||
Awards granted (in units) | 165 | ||||||||||
Weighted average fair value of shares granted during the year (in dollars per share) | $ 103.30 | ||||||||||
2019 Stock Incentive Plan | Time Based Restricted Stock Units | |||||||||||
Stock-based incentive plan awards | |||||||||||
Vesting rights each year beginning 2022 (as a percent) | 33.33% | ||||||||||
Vesting service period | 3 years | 3 years | 3 years | 3 years | |||||||
Awards granted (in units) | 64,852 | 52,673 | 37,976 | 312,263 | |||||||
Grant date fair value | $ 7.9 | $ 6.9 | $ 4.3 | $ 26.3 | |||||||
Weighted average fair value of shares granted during the year (in dollars per share) | $ 121.25 | $ 130.84 | $ 130.05 | $ 112.92 | $ 84.37 | ||||||
LTIP programs | |||||||||||
Stock-based incentive plan awards | |||||||||||
Percent of distributions of Operating Partnership that participants are entitled to receive during performance period | 10% | ||||||||||
Compensation expense, net of capitalization | $ 6.3 | $ 5.8 | |||||||||
2019 LTIP program | LTIP Units | |||||||||||
Stock-based incentive plan awards | |||||||||||
Performance period | 3 years | ||||||||||
Units earned (in shares) | 72,442 | ||||||||||
2021 LTIP program | LTIP Units | |||||||||||
Stock-based incentive plan awards | |||||||||||
Performance period | 3 years | ||||||||||
Grant date fair value | 5.7 | ||||||||||
Grant date target value | 12.2 | ||||||||||
2021 LTIP program | Time Based Restricted Stock Units | Maximum | |||||||||||
Stock-based incentive plan awards | |||||||||||
Grant date fair value | $ 18.4 | ||||||||||
2022 LTIP program | LTIP Units | |||||||||||
Stock-based incentive plan awards | |||||||||||
Performance period | 3 years | ||||||||||
Grant date target value | $ 13.7 | ||||||||||
2022 LTIP program | LTIP Units | Maximum | |||||||||||
Stock-based incentive plan awards | |||||||||||
Grant date fair value | $ 20.6 | ||||||||||
2023 LTIP program | LTIP Units | |||||||||||
Stock-based incentive plan awards | |||||||||||
Performance period | 3 years | ||||||||||
Grant date target value | $ 23.6 | ||||||||||
2023 LTIP program | LTIP Units | Maximum | |||||||||||
Stock-based incentive plan awards | |||||||||||
Grant date fair value | $ 42.5 |
Lease Income (Details)
Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Lessor, Lease, Description [Line Items] | |||
Fixed lease income | $ 1,013,164 | $ 959,630 | |
Variable lease income | 235,021 | 248,237 | |
Total lease income | 1,248,185 | $ 1,207,867 | |
Tenant receivables and accrued revenue | |||
Lessor, Lease, Description [Line Items] | |||
Straight-line receivables | $ 539,500 | $ 546,500 |
Commitments and Contingencies -
Commitments and Contingencies - Lease Commitments (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) property | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Lease Commitments | |||
Properties subject to ground leases | property | 23 | ||
Lease Cost | |||
Fixed lease cost | $ 8,123 | $ 8,095 | |
Variable lease cost | 4,986 | 4,269 | |
Total operating lease cost | 13,109 | 12,364 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | $ 13,090 | $ 12,339 | |
Weighted-average remaining lease term - operating leases | 32 years 6 months | 33 years 3 months 18 days | |
Weighted-average discount rate - operating leases | 4.88% | 4.87% | |
Operating Lease Liabilities | |||
2023 | $ 33,264 | ||
2024 | 30,850 | ||
2025 | 30,861 | ||
2026 | 30,875 | ||
2027 | 30,904 | ||
Thereafter | 835,263 | ||
Future minimum gross lease payments | 992,017 | ||
Impact of discounting | (496,444) | ||
Operating lease liabilities | $ 495,573 | $ 497,953 |
Commitments and Contingencies_2
Commitments and Contingencies - Guarantees of Indebtedness (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Joint Venture Mortgage and Indebtedness | ||
Guarantees of Joint Venture Indebtedness: | ||
Loan guarantee | $ 132 | $ 128 |
Commitments and Contingencies_3
Commitments and Contingencies - Concentration of Credit Risk (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Consolidated revenues | Concentration of credit risk | Maximum | |
Concentration of Credit Risk | |
Percentage of consolidated revenues from a single customer or tenant | 5% |