Simon Property Group, Inc. Simon Property Group, L.P. Notes to Consolidated Financial Statements (Dollars in thousands, except share, per share, unit and per unit amounts and where indicated as in millions or billions)
impairment, net in the accompanying consolidated statement of operations and comprehensive income. This non-cash investing and financing activity is excluded from our consolidated statement of cash flows.
The Taubman Realty Group During the fourth quarter of 2024, we acquired an additional 4% ownership in TRG for approximately $266.7 million by issuing 1,572,500 units in the Operating Partnership, then bringing our noncontrolling ownership interest in TRG to 88%. In the third quarter of 2023, we acquired an additional 4% ownership in TRG for approximately $199.6 million by issuing 1,725,000 units in the Operating Partnership. Substantially all of our investment was determined to relate to investment property. Our investment included 6.38% Series A Cumulative Redeemable Preferred Units for $362.5 million issued to us. Neither transaction included or resulted in any change to the rights and obligations or decision making authority of the members of the TRG partnership. Subsequent to the TRG Acquisition discussed in Note 4, 11 of the former TRG properties are accounted for as equity method investments and are presented in the summary financial information later in this Note. The tables below represent summary financial information of TRG up to the date of the TRG Acquisition discussed in Note 4.
December 31, 2024
Total assets ................................................................. $ Totalliabilities................................................................ Noncontrollinginterests........................................................
3,210,634 4,171,378
167,251
For the 10 Months Ended For the Year Ended October 31, December 31, 2025 2024 2023
Totalrevenues...................................... $ Operating income before other items . . . . . . . . . . . . . . . . . . . . Consolidatednetincome.............................. Our share of net income .............................. Amortization of excess investment . . . . . . . . . . . . . . . . . . . . . .
598,530 250,304 166,949 145,917 (164,422)
$ 716,668 $ 695,222
289,827 243,169 203,518 (264,942)
281,349 42,910 32,728 (113,333)
Other Platform Investments During the fourth quarter of 2024, J.C. Penney completed an all-equity transaction where it acquired the retail operations of SPARC Group, resulting in the recognition of a non-cash pre-tax gain, our share of which was $100.5 million, which is included in (Loss) gain due to disposal, exchange, or revaluation of equity interests, net in the consolidated statement of operations and comprehensive income. The combined business was renamed Catalyst post transaction. This non-cash investment activity is excluded from our consolidated statement of cash flows. In connection with this transaction, we recorded deferred taxes of $25.1 million, which is included in income and other tax expense in the consolidated statement of operations and comprehensive income. As of December 31, 2025 and 2024, we own a 31.3% noncontrolling interest in Catalyst. Additionally, we continue to hold a 33.3% noncontrolling interest in SPARC Holdings, the former owner of SPARC Group, which now primarily holds a 25% interest in Catalyst. During 2025, Catalyst recognized a net pre-tax loss on restructuring activities, our share of which was $9.4 million, which is included in (Loss) gain due to disposal, exchange, or revaluation of equity interests, net in the consolidated statement of operations and comprehensive income. During the first quarter of 2024, we and a partner funded a loan to SPARC Group, our share of which was $100.0 million, which constituted a reconsideration event and the resulting determination that SPARC Group was a VIE. As we did not have power to direct the activities that most significantly impacted the economic performance of SPARC Group, we were not the primary beneficiary and continued to account for our investment under the equity method. In the second
118
Powered by FlippingBook