SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) : August 9, 1996
SIMON PROPERTY GROUP, INC.
(Exact name of registrant as specified in its charter)
Maryland 1-12618 35-1901999
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
115 WEST WASHINGTON STREET
INDIANAPOLIS, INDIANA 46204
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 317.636.1600
Not Applicable
(Former name or former address, if changed since last report)
<PAGE> 01
Item 5. Other Events
On August 6, 1996 the Registrant made available certain operational and
portfolio information concerning the Registrant, Simon Property Group, L.P.,
and the properties owned or managed by it as of June 30, 1996, in the form of a
press release, a copy of which is included as an exhibit to this filing. A
paper copy of the press release is available upon request as specified therein.
Item 7. Financial Statements and Exhibits
Financial Statements:
None
Exhibits:
Page Number in
Exhibit No. Description This Filing
99 Press release 4
as of June 30, 1996
<PAGE> 02
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: August 9, 1996
SIMON PROPERTY GROUP, INC.
By: /s/ Dennis Cavanagh
Dennis Cavanagh,
Senior Vice President,
Financial Services
<PAGE> 03
CONTACTS:
Shelly Doran 317.685.7330 Investors
Billie Scott 317.263.7148 Media
FOR IMMEDIATE RELEASE
SIMON PROPERTY GROUP ANNOUNCES SECOND QUARTER RESULTS
Indianapolis, Indiana - August 6, 1996...Simon Property Group, Inc. (NYSE:SPG)
today announced results for the quarter and six months ended June 30, 1996.
The Company's share of funds from operations ("FFO") for the quarter increased
12.4% to $30.9 million as compared to $27.5 million for the same period in
1995. The increase on a per share basis was 6.0%, to $0.53 per share in 1996
from $0.50 per share in 1995. The Company's share of FFO for the six months
increased 18.0% to $60.6 million as compared to $51.4 million for the same
period in 1995. The increase on a per share basis was 6.1%, to $1.04 per share
in 1996 from $0.98 per share in 1995. FFO amounts were calculated in
accordance with the National Association of Real Estate Investment Trust's
revised definition of FFO. Under the previous method of reporting, FFO for the
second quarter of 1996 would have been $0.55 per share, and for the first six
months would have been $1.09 per share.
Total revenue for the quarter increased 9.9% to $143.8 million as compared to
$130.8 million for the same period in 1995. Total revenue for the six months
increased 8.8% to $283.2 million as compared to $260.3 million for the same
period in 1995.
Average base rents for mall and freestanding stores in the regional mall
portfolio were $19.79 per square foot at June 30, 1996, an increase of $1.11,
or 5.9%, from $18.68 at December 31, 1995, and an increase of $1.73, or 9.6%,
from $18.06 at June 30, 1995. The average initial base rent for new leases
signed during the first six months of 1996 was $22.20, an increase of $5.39 or
32.1%, over the tenants who closed or whose leases expired. Occupancy for mall
and freestanding stores in the regional malls at June 30, 1996, was 83.1% as
compared to 84.6% at June 30, 1995. Sales volume for mall and freestanding
stores within the regional mall portfolio for the six months increased 13.5%,
to $1,572 million in 1996 from $1,385 million in 1995.
<PAGE> 04
Average base rents in the community center portfolio were $7.44 per square foot
at June 30, 1996, an increase of $0.17, or 2.3%, from $7.27 at December 31,
1995, and an increase of $0.23, or 3.2%, from $7.21 at June 30, 1995.
Occupancy within the community center portfolio at June 30, 1996, was 92.6% as
compared to 94.6% at June 30, 1995. Sales volume for Company-owned GLA within
the community center portfolio for the six months was $542 million in 1996 as
compared to $584 million in 1995, the decrease due primarily to the reclaiming
and retenanting of anchor space.
"Our 1996 financial results continue to be consistent with our plan, despite
the drop in occupancy directly attributable to 1995 tenant bankruptcies,"
stated David Simon, SPG President and Chief Executive Officer. "We expect to
have the vast majority of this space released for the 1996 holiday season. We
continue to increase the profitability of our core portfolio, as evidenced by
the Company's recent redevelopment activity including the following anchor
additions:
at Alton Square in Alton, Illinois, a 108,000 square foot Sears store is
scheduled to begin construction in the fall of 1996 for a fall 1997
planned opening;
at Smith Haven Mall in Long Island, New York, a mall acquired by SPG in
December 1995, a 91,000 square foot JCPenney is scheduled to begin
construction in the fall of 1996 for a spring 1997 opening;
at St. Charles Towne Center in Waldorf, Maryland, an approximately 100,000
square foot Kohl's store is scheduled to begin construction in the fall of
1996 for a spring 1997 scheduled opening; and
at Orange Park Mall in Jacksonville, Florida, a mall acquired by SPG in
December 1994, a 24 screen, 79,000 square foot AMC Theatre complex is
scheduled to begin construction in the fall of 1996 for a fall 1997
opening.
We also look forward to the impending closing of our merger with DeBartolo, and
its positive impact on our results for the remainder of 1996."
Simon Property Group owns, develops, manages, leases, expands and acquires
regional malls, community shopping centers and specialty and mixed-use
properties throughout the United States. It currently owns or has an interest
in 123 properties which consist of existing regional malls, community shopping
centers and specialty and mixed-use properties containing an aggregate of 63
million square feet of gross leasable area in 29 states, of which approximately
37.7 million square feet is Company-owned. Simon Property Group, together with
its affiliated management company, currently manages approximately 76 million
square feet of gross leasable area in retail and mixed-use properties. On July
31, SPG opened Cottonwood Mall, a one million square foot super-regional mall
in Albuquerque, New Mexico. In March, Simon Property Group and DeBartolo
Realty Corporation (NYSE:EJD) announced a plan to merge the two companies. The
merger is expected to be completed this month and is subject to the approval of
shareholders of both companies.
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Supplemental Materials
A copy of SPG's June 30, 1996, supplemental information package will be made
available upon written request to: Shelly J. Doran - Director of Investor
Relations, Simon Property Group, P.O. Box 7033 Indianapolis, IN 46207.
<TABLE>
SIMON PROPERTY GROUP, INC.
Financial Highlights
Unaudited
(In thousands, except as noted)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
------ ------ ------ ------
<S> <C> <C> <C> <C>
Funds from Operations of the Operating Partnership $ 50,532 $ 45,859 $ 99,212 $ 87,795
FFO Allocable to the Company $ 30,892 $ 27,475 $ 60,619 $ 51,357
FFO per Common Share of the Company $0.53 $0.50 $1.04 $0.98
Weighted Average Common Shares and
Partnership Units Outstanding 95,843 92,943 95,754 89,868
Weighted Average Common Shares Outstanding 58,560 55,658 58,471 52,536
Total Revenue $143,761 $130,765 $283,204 $260,255
Operating Expenses 54,075 50,560 107,773 100,078
Depreciation and Amortization 26,635 22,090 51,307 43,197
------ ------ ------- -------
Operating Income before Interest Expense 63,051 58,115 124,124 116,980
Interest Expense 40,568 36,724 79,134 75,657
Income before Minority Interest 22,483 21,391 44,990 41,323
Minority Interest (672) (958) (1,175) (1,335)
Gain on Sale of Asset - - - 2,350(A)
------ ------ ------ ------
Income before Unconsolidated Entities 21,811 20,433 43,815 42,338
Income from Unconsolidated Entities 2,157 3,095 3,985 3,397
Income of the Operating Partnership before
Extraordinary Items 23,968 23,528 47,800 45,735
Extraordinary Items - (248)(B) (265)(B) (248)(B)
------ ------ ------ ------
Income of the Operating Partnership 23,968 23,280 47,535 45,487
Less: Limited Partners' Interest
in Operating Partnership (8,525) (9,333) (16,907) (18,893)
------ ------ ------ ------
Net Income 15,443 13,947 30,628 26,594
Preferred Dividends (2,031) - (4,062) -
------ ------ ------ ------
Net Income Available to Common Shareholders $ 13,412 $ 13,947 $ 26,566 $ 26,594
====== ====== ====== ======
Income per Common Share:
Before Extraordinary Items $0.23 $0.25 $0.45 $0.51
Extraordinary Items - - - -
---- ---- ---- ----
Net Income Available to Common Shareholders $0.23 $0.25 $0.45 $0.51
==== ==== ==== ====
</TABLE>
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<TABLE>
SELECTED BALANCE SHEET INFORMATION June 30, December 31,
1996 1995
---------- ----------
<S> <C> <C>
Cash and Cash Equivalents $65,556 $62,721
Investments in Real Estate, Net $2,154,506 $2,009,344
Mortgages and Other Notes Payable $2,178,539 $1,980,759
SELECTED OPERATING STATISTICS June 30,
1996 1995
------ -------
Occupancy
Regional Malls (C) 83.1% 84.6%
Community Shopping Centers (D) 92.6% 94.6%
Average Rent per Square Foot
Regional Malls (C) $19.79 $18.06
Community Shopping Centers (D) $7.44 $7.21
Total Sales Volume (millions)(E)
Regional Malls(F) $1,572 $1,385
Community Shopping Centers(D) $542 $584
(A) Represents gain on the sale of a minority partnership interest in land
previously held for development.
(B) Represents charges incurred with prepayment of debt.
(C) Includes mall and freestanding stores.
(D) Includes all company-owned GLA.
(E) Represents only those tenants who report sales.
(F) Based on the new standard definition of sales for regional malls adopted
by the International Council of Shopping Centers which includes only
mall and freestanding stores.
</TABLE>
<TABLE>
RECONCILIATION OF NET INCOME TO FFO Six Months Ended
June 30,
1996 1995
Simon Property Group, L.P. ------- -------
<S> <C> <C>
Income of the Operating Partnership before Extraordinary Items $47,800 $45,735
Plus: Depreciation and Amortization from
Consolidated Properties 51,038 42,959
Less: Minority Interest Portion of Depreciation,
Amortization and Extraordinary Items (1,514) (1,561)
Plus: SPG's Share of Depreciation and Amortization
from Unconsolidated Affiliates 5,950 3,012
Less: Preferred Dividends (4,062) -
Less: Gain on Sale of Asset - (2,350)
Funds from Operations of the Operating Partnership $99,212 $87,795
Weighted Average Common Shares and Partnership Units Outstanding 95,754 89,868
FFO per Share/Unit $1.04 $0.98
Simon Property Group, Inc.
FFO Allocable to SPG, Inc. $60,619 $51,357
Weighted Average Common Shares Outstanding 58,471 52,536
FFO per Share $1.04 $0.98
</TABLE>
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