Simon Property Group, Inc. (SPG)

FORM 10-Q | Quarterly Report
SIMON PROPERTY GROUP INC /DE/ (Form: 10-Q, Received: 05/08/2019 06:47:22)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10‑Q

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

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

SIMON PROPERTY GROUP, INC.

SIMON PROPERTY GROUP, L.P.

(Exact name of registrant as specified in its charter)

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

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

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

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

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

 

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

 

 

Simon Property Group, Inc.    Yes     No

Simon Property Group, L.P.    Yes     No

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

 

 

Simon Property Group, Inc.    Yes    No

Simon Property Group, L.P.    Yes    No

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

Simon Property Group, Inc.:

 

 

 

Large accelerated filer 

Accelerated filer 

Non‑accelerated filer 

Smaller reporting company 

 

 

 

 

Emerging growth company

 

 

 

 

Simon Property Group, L.P.:

 

 

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

 

 

Emerging growth company

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

 

Simon Property Group, Inc.   

 

Simon Property Group, L.P.   

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

 

Simon Property Group, Inc.    Yes     No

 

Simon Property Group, L.P.    Yes     No

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

 

 

 

 

 

Title of each class

 

Trading Symbols

 

Name of each exchange on which registered

Simon Property Group, Inc.

 

Common stock, $0.0001 par value

 

SPG

 

New York Stock Exchange

Simon Property Group, Inc.

 

8 3 / 8 % Series J Cumulative Redeemable Preferred Stock, $0.0001 par value

 

SPGJ

 

New York Stock Exchange

Simon Property Group, L.P.

 

2.375% Senior Unsecured Notes due 2020

 

SPG/20

 

New York Stock Exchange

As of March 31, 2019, Simon Property Group, Inc. had 308,985,608 shares of common stock, par value $0.0001 per share, and 8,000 shares of Class B common stock, par value $0.0001 per share, outstanding. Simon Property Group, L.P. has no common stock outstanding.

 

 

 

 


 

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10‑Q for the quarterly period ended March 31, 2019 of Simon Property Group, Inc., a Delaware corporation, and Simon Property Group, L.P., a Delaware limited partnership. Unless stated otherwise or the context otherwise requires, references to “Simon” mean Simon Property Group, Inc. and references to the “Operating Partnership” mean Simon Property Group, L.P. References to “we,” “us” and “our” mean collectively Simon, the Operating Partnership and those entities/subsidiaries owned or controlled by Simon and/or the Operating Partnership.

Simon is a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. We are structured as an umbrella partnership REIT under which substantially all of our business is conducted through the Operating Partnership, Simon’s majority‑owned partnership subsidiary, for which Simon is the general partner. As of March 31, 2019, Simon owned an approximate 86.9% ownership interest in the Operating Partnership, with the remaining 13.1% ownership interest owned by limited partners. As the sole general partner of the Operating Partnership, Simon has exclusive control of the Operating Partnership’s day‑to‑day management.

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

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

·

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

·

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

·

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

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

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

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

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

·

separate consolidated financial statements for Simon and the Operating Partnership;

·

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

2


 

·

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

·

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

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

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

3


 

Simon Property Group, Inc.

Simon Property Group, L.P.

Form 10‑Q

INDEX

 

 

 

    

Page

Part I — Financial Information

 

 

 

 

 

 

 

 

Item 1.

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

 

 

 

 

Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018

 

5

 

 

Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2019 and 2018

 

6

 

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018

 

7

 

 

Consolidated Statements of Equity for the three months ended March 31, 2019 and 2018

 

8

 

 

 

 

 

 

 

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

 

 

 

 

Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018

 

9

 

 

Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2019 and 2018

 

10

 

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018

 

11

 

 

Consolidated Statements of Equity for the three months ended March 31, 2019 and 2018

 

12

 

 

 

 

 

 

 

Condensed Notes to Consolidated Financial Statements

 

13

 

Item 2.

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

 

32

 

Item 3.

Qualitative and Quantitative Disclosures About Market Risk

 

44

 

Item 4.

Controls and Procedures

 

44

 

 

 

Part II — Other Information  

 

 

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

45

 

Item 1A.

Risk Factors

 

45

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

45

 

Item 3.

Defaults Upon Senior Securities

 

45

 

Item 4.

Mine Safety Disclosures

 

46

 

Item 5.

Other Information

 

46

 

Item 6.

Exhibits

 

47

 

 

 

Signatures  

 

48

 

4


 

Simon Property Group, Inc.

Unaudited Consolidated Balance Sheets

(Dollars in thousands, except share amounts)

 

 

 

 

 

 

 

 

 

    

March 31, 

    

December 31, 

 

 

 

2019

 

2018

 

ASSETS:

 

 

 

 

 

 

 

Investment properties, at cost

 

$

37,193,798

 

$

37,092,670

 

Less - accumulated depreciation

 

 

13,119,895

 

 

12,884,539

 

 

 

 

24,073,903

 

 

24,208,131

 

Cash and cash equivalents

 

 

436,802

 

 

514,335

 

Tenant receivables and accrued revenue, net

 

 

733,159

 

 

763,815

 

Investment in unconsolidated entities, at equity

 

 

2,197,309

 

 

2,220,414

 

Investment in Klépierre, at equity

 

 

1,676,635

 

 

1,769,488

 

Deferred costs and other assets

 

 

1,723,968

 

 

1,210,040

 

Total assets

 

$

30,841,776

 

$

30,686,223

 

LIABILITIES:

 

 

 

 

 

 

 

Mortgages and unsecured indebtedness

 

$

23,185,965

 

$

23,305,535

 

Accounts payable, accrued expenses, intangibles, and deferred revenues

 

 

1,157,477

 

 

1,316,861

 

Cash distributions and losses in unconsolidated entities, at equity

 

 

1,559,534

 

 

1,536,111

 

Other liabilities

 

 

1,012,976

 

 

500,597

 

Total liabilities

 

 

26,915,952

 

 

26,659,104

 

Commitments and contingencies

 

 

 

 

 

 

 

Limited partners’ preferred interest in the Operating Partnership and noncontrolling redeemable interests in properties

 

 

225,882

 

 

230,163

 

EQUITY:

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

 

Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):

 

 

 

 

 

 

 

Series J 8 3/8 % cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847

 

 

42,666

 

 

42,748

 

Common stock, $0.0001 par value, 511,990,000 shares authorized, 320,435,571 and 320,411,571 issued and outstanding, respectively

 

 

32

 

 

32

 

Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding

 

 

 —

 

 

 —

 

Capital in excess of par value

 

 

9,706,021

 

 

9,700,418

 

Accumulated deficit

 

 

(4,979,489)

 

 

(4,893,069)

 

Accumulated other comprehensive loss

 

 

(120,962)

 

 

(126,017)

 

Common stock held in treasury, at cost, 11,449,963 and 11,402,103 shares, respectively

 

 

(1,435,309)

 

 

(1,427,431)

 

Total stockholders’ equity

 

 

3,212,959

 

 

3,296,681

 

Noncontrolling interests

 

 

486,983

 

 

500,275

 

Total equity

 

 

3,699,942

 

 

3,796,956

 

Total liabilities and equity

 

$

30,841,776

 

$

30,686,223

 

 

The accompanying notes are an integral part of these statements.

5


 

Simon Property Group, Inc.

Unaudited Consolidated Statements of Operations and Comprehensive Income

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

March 31, 

 

 

    

2019

    

2018

 

REVENUE:

 

 

 

 

 

 

 

Lease income

 

$

1,280,058

 

$

1,267,893

 

Management fees and other revenues

 

 

27,544

 

 

28,181

 

Other income

 

 

145,232

 

 

98,108

 

     Total revenue

 

 

1,452,834

 

 

1,394,182

 

EXPENSES:

 

 

 

 

 

 

 

Property operating

 

 

111,549

 

 

113,448

 

Depreciation and amortization

 

 

328,643

 

 

316,936

 

Real estate taxes

 

 

115,459

 

 

114,187

 

Repairs and maintenance

 

 

27,922

 

 

27,684

 

Advertising and promotion

 

 

37,125

 

 

34,800

 

Home and regional office costs

 

 

52,560

 

 

41,064

 

General and administrative

 

 

9,136

 

 

12,628

 

Other

 

 

20,102

 

 

31,502

 

Total operating expenses

 

 

702,496

 

 

692,249

 

OPERATING INCOME BEFORE OTHER ITEMS

 

 

750,338

 

 

701,933

 

Interest expense

 

 

(198,733)

 

 

(205,492)

 

Income and other taxes

 

 

(10,102)

 

 

(6,220)

 

Income from unconsolidated entities

 

 

90,444

 

 

90,026

 

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

 

 

 —

 

 

135,277

 

CONSOLIDATED NET INCOME

 

 

631,947

 

 

715,524

 

Net income attributable to noncontrolling interests

 

 

82,638

 

 

94,036

 

Preferred dividends

 

 

834

 

 

834

 

NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

 

$

548,475

 

$

620,654

 

BASIC AND DILUTED EARNINGS PER COMMON SHARE:

 

 

 

 

 

 

 

Net income attributable to common stockholders

 

$

1.78

 

$

2.00

 

 

 

 

 

 

 

 

 

Consolidated Net Income

 

$

631,947

 

$

715,524

 

Unrealized gain (loss) on derivative hedge agreements

 

 

9,342

 

 

(6,146)

 

Net loss reclassified from accumulated other comprehensive loss into earnings

 

 

1,088

 

 

2,153

 

Currency translation adjustments

 

 

(4,744)

 

 

13,092

 

Changes in available-for-sale securities and other

 

 

144

 

 

(289)

 

Comprehensive income

 

 

637,777

 

 

724,334

 

Comprehensive income attributable to noncontrolling interests

 

 

83,411

 

 

95,140

 

Comprehensive income attributable to common stockholders

 

$

554,366

 

$

629,194

 

 

The accompanying notes are an integral part of these statements.

6


 

Simon Property Group, Inc.

Unaudited Consolidated Statements of Cash Flows

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

March 31, 

 

 

    

2019

    

2018

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Consolidated Net Income

 

$

631,947

 

$

715,524

 

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

 

 

 

 

 

 

 

Depreciation and amortization

 

 

339,918

 

 

334,672

 

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

 

 

 —

 

 

(135,277)

 

Unrealized change in fair value of equity instruments

 

 

(5,317)

 

 

3,029

 

Straight-line lease income

 

 

(11,981)

 

 

(6,276)

 

Equity in income of unconsolidated entities

 

 

(90,444)

 

 

(90,026)

 

Distributions of income from unconsolidated entities

 

 

82,918

 

 

77,870

 

Changes in assets and liabilities

 

 

 

 

 

 

 

Tenant receivables and accrued revenue, net

 

 

36,842

 

 

71,858

 

Deferred costs and other assets

 

 

(20,013)

 

 

(62,839)

 

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

 

 

(126,523)

 

 

(65,058)

 

Net cash provided by operating activities

 

 

837,347

 

 

843,477

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Funding of loans to related parties

 

 

 —

 

 

(1,833)

 

Capital expenditures, net

 

 

(216,781)

 

 

(172,756)

 

Investments in unconsolidated entities

 

 

(11,980)

 

 

(10,859)

 

Purchase of marketable and non-marketable securities

 

 

(6,905)

 

 

(7,542)

 

Insurance proceeds for property restoration

 

 

1,757

 

 

 —

 

Distributions of capital from unconsolidated entities and other

 

 

120,347

 

 

69,316

 

Net cash used in investing activities

 

 

(113,562)

 

 

(123,674)

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

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

 

 

(82)

 

 

(82)

 

Purchase of shares related to stock grant recipients' tax withholdings

 

 

(249)

 

 

(276)

 

Redemption of limited partner units

 

 

(135)

 

 

(6,267)

 

Purchase of treasury stock

 

 

(7,628)

 

 

(227,901)

 

Distributions to noncontrolling interest holders in properties

 

 

(1,803)

 

 

(8,376)

 

Contributions from noncontrolling interest holders in properties

 

 

 —

 

 

24

 

Preferred distributions of the Operating Partnership

 

 

(479)

 

 

(479)

 

Distributions to stockholders and preferred dividends

 

 

(634,222)

 

 

(606,086)

 

Distributions to limited partners

 

 

(96,010)

 

 

(91,523)

 

Proceeds from issuance of debt, net of transaction costs

 

 

2,587,324

 

 

1,756,056

 

Repayments of debt

 

 

(2,648,034)

 

 

(2,649,995)

 

Net cash used in financing activities

 

 

(801,318)

 

 

(1,834,905)

 

DECREASE IN CASH AND CASH EQUIVALENTS

 

 

(77,533)

 

 

(1,115,102)

 

CASH AND CASH EQUIVALENTS, beginning of period

 

 

514,335

 

 

1,482,309

 

CASH AND CASH EQUIVALENTS, end of period

 

$

436,802

 

$

367,207

 

 

The accompanying notes are an integral part of these statements.

 

 

7


 

Simon Property Group, Inc.

Unaudited Consolidated Statements of Equity

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

   

 

 

   

Accumulated

   

 

 

   

 

 

   

Common

   

 

 

   

 

 

 

 

 

 

 

 

 

 

 

Other

 

Capital in

 

 

 

 

Stock

 

 

 

 

 

 

 

 

 

Preferred

 

Common

 

Comprehensive

 

Excess of

 

Accumulated

 

Held in

 

Noncontrolling

 

Total

 

 

    

Stock

    

Stock

    

Income (Loss)

    

Par Value

    

Deficit

    

Treasury

    

interests

    

Equity

 

January 1, 2019

 

$

42,748

 

$

32

 

$

(126,017)

 

$

9,700,418

 

$

(4,893,069)

 

$

(1,427,431)

 

$

500,275

 

$

3,796,956

 

Exchange of limited partner units (24,000 common shares, note 8)

 

 

 

 

 

 

 

 

 

 

 

253

 

 

 

 

 

 

 

 

(253)

 

 

 —

 

Series J preferred stock premium amortization

 

 

(82)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(82)

 

Redemption of limited partner units (774 units)

 

 

 

 

 

 

 

 

 

 

 

(127)

 

 

 

 

 

 

 

 

(8)

 

 

(135)

 

Amortization of stock incentive

 

 

 

 

 

 

 

 

 

 

 

1,309

 

 

 

 

 

 

 

 

 

 

 

1,309

 

Treasury stock purchase (46,377 shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,628)

 

 

 

 

 

(7,628)

 

Long-term incentive performance units

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,701

 

 

3,701

 

Issuance of unit equivalents and other (1,483 common shares repurchased)

 

 

 

 

 

 

 

 

 

 

 

 1

 

 

(1,507)

 

 

(250)

 

 

(2)

 

 

(1,758)

 

Adjustment to limited partners’ interest from change in ownership in the Operating Partnership

 

 

 

 

 

 

 

 

 

 

 

4,167

 

 

 

 

 

 

 

 

(4,167)

 

 

 —

 

Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(634,222)

 

 

 

 

 

(96,010)

 

 

(730,232)

 

Distributions to other noncontrolling interest partners

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(552)

 

 

(552)

 

Other comprehensive income

 

 

 

 

 

 

 

 

5,055

 

 

 

 

 

 

 

 

 

 

 

775

 

 

5,830

 

Net income, excluding $479 attributable to preferred interests in the Operating Partnership and a $1,065 loss attributable to noncontrolling redeemable interests in properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

549,309

 

 

 

 

 

83,224

 

 

632,533

 

March 31, 2019

 

$

42,666

 

$

32

 

$

(120,962)

 

$

9,706,021

 

$

(4,979,489)

 

$

(1,435,309)

 

$

486,983

 

$

3,699,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2018

 

$

43,077

 

$

32

 

$

(110,453)

 

$

9,614,748

 

$

(4,782,173)

 

$

(1,079,063)

 

$

552,596

 

$

4,238,764

 

Exchange of limited partner units (6,000 common shares, note 8)

 

 

 

 

 

 

 

 

 

 

 

70

 

 

 

 

 

 

 

 

(70)

 

 

 —

 

Series J preferred stock premium amortization

 

 

(83)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(83)

 

Stock incentive program (236 common shares, net)

 

 

 

 

 

 

 

 

 

 

 

(37)

 

 

 

 

 

37

 

 

 

 

 

 —

 

Redemption of limited partner units (40,503 units)

 

 

 

 

 

 

 

 

 

 

 

(5,793)

 

 

 

 

 

 

 

 

(474)

 

 

(6,267)

 

Amortization of stock incentive

 

 

 

 

 

 

 

 

 

 

 

2,060

 

 

 

 

 

 

 

 

 

 

 

2,060

 

Treasury stock purchase (1,473,588 shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(227,901)

 

 

 

 

 

(227,901)

 

Long-term incentive performance units

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,307

 

 

8,307

 

Cumulative effect of accounting change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,264

 

 

 

 

 

 

 

 

7,264

 

Issuance of unit equivalents and other (1,608 common shares repurchased)

 

 

 

 

 

 

 

 

 

 

 

 3

 

 

(14,935)

 

 

(276)

 

 

24

 

 

(15,184)

 

Adjustment to limited partners’ interest from change in ownership in the Operating Partnership

 

 

 

 

 

 

 

 

 

 

 

36,221

 

 

 

 

 

 

 

 

(36,221)

 

 

 —

 

Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(606,086)

 

 

 

 

 

(91,523)

 

 

(697,609)

 

Distributions to other noncontrolling interest partners

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(489)

 

 

(489)

 

Other comprehensive income

 

 

 

 

 

 

 

 

7,706

 

 

 

 

 

 

 

 

 

 

 

1,104

 

 

8,810

 

Net income, excluding $479 attributable to preferred interests in the Operating Partnership and a $619 loss attributable to noncontrolling redeemable interests in properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

621,488

 

 

 

 

 

94,176

 

 

715,664

 

March 31, 2018

 

$

42,994

 

$

32

 

$

(102,747)

 

$

9,647,272

 

$

(4,774,442)

 

$

(1,307,203)

 

$

527,430

 

$

4,033,336

 

 

The accompanying notes are an integral part of these statements.

 

 

8


 

Simon Property Group, L.P.

Unaudited Consolidated Balance Sheets

(Dollars in thousands, except unit amounts)

 

 

 

 

 

 

 

 

 

    

March 31, 

    

December 31, 

 

 

 

2019

 

2018

 

ASSETS:

 

 

 

 

 

 

 

Investment properties, at cost

 

$

37,193,798

 

$

37,092,670

 

Less — accumulated depreciation

 

 

13,119,895

 

 

12,884,539

 

 

 

 

24,073,903

 

 

24,208,131

 

Cash and cash equivalents

 

 

436,802

 

 

514,335

 

Tenant receivables and accrued revenue, net

 

 

733,159

 

 

763,815

 

Investment in unconsolidated entities, at equity

 

 

2,197,309

 

 

2,220,414

 

Investment in Klépierre, at equity

 

 

1,676,635

 

 

1,769,488

 

Deferred costs and other assets

 

 

1,723,968

 

 

1,210,040

 

Total assets

 

$

30,841,776

 

$

30,686,223

 

LIABILITIES:

 

 

 

 

 

 

 

Mortgages and unsecured indebtedness

 

$

23,185,965

 

$

23,305,535

 

Accounts payable, accrued expenses, intangibles, and deferred revenues

 

 

1,157,477

 

 

1,316,861

 

Cash distributions and losses in unconsolidated entities, at equity

 

 

1,559,534

 

 

1,536,111

 

Other liabilities

 

 

1,012,976

 

 

500,597

 

Total liabilities

 

 

26,915,952

 

 

26,659,104

 

Commitments and contingencies

 

 

 

 

 

 

 

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

 

 

225,882

 

 

230,163

 

EQUITY:

 

 

 

 

 

 

 

Partners’ Equity

 

 

 

 

 

 

 

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

 

 

42,666

 

 

42,748

 

General Partner, 308,993,608 and 309,017,468 units outstanding, respectively

 

 

3,170,293

 

 

3,253,933

 

Limited Partners, 46,782,598 and 46,807,372 units outstanding, respectively

 

 

479,989

 

 

492,877

 

Total partners’ equity

 

 

3,692,948

 

 

3,789,558

 

Nonredeemable noncontrolling interests in properties, net

 

 

6,994

 

 

7,398

 

Total equity

 

 

3,699,942