Copley Place, Boston, MA
Now let’s turn to profitability. We evaluate all investment opportunities through a rigorous profitability lens with a focus on long-term value creation. This approach (indoctrinated in our culture) has driven sustained growth in cash flow, FFO and dividends. Over the past four years, our FFO per share and dividends paid to shareholders have grown at a compound annual rate of 9% and 8%, respectively. With that backdrop, let’s turn to our 2024 highlights.
• Our share of Domestic
and outperformed the MSCI US REIT Index (“RMS”) and the S&P 500 Index. SPG has outperformed the RMS in each of the last four years and has outperformed the S&P 500 in three of the last four years. • Ownership of SPG common stock has provided a total return to shareholders of 4,000% since our 1993 IPO. NEW DEVELOPMENT • We opened a fully leased, 338,000 square foot Premium Outlet Center in Tulsa, Oklahoma. The center features over 75 shops and eateries, including 30 first-to-market retailers and restaurants. It also offers an interactive children’s play area, green spaces for gatherings, and a variety of amenities including a fire pit, fountain areas and sculptures crafted by local and regional artists. I am happy to report that sales at Tulsa Premium Outlets ® are exceeding retailers’ expectations.
Property NOI grew 4.7%, or $246 million year-over-year, to $5.52 billion (record) . • Our share of Portfolio NOI, including international properties on a constant currency basis, grew 4.6%, or $255 million, to $5.84 billion (record) . • We generated $1.9 billion of cash flow, after our dividend payments of $3.0 billion (record) . • Occupancy for our U.S. Malls and Premium Outlets ® increased 70 basis points and ended the year at 96.5%. The Mills ® occupancy ended the year at 98.8% (record) and Taubman Realty Group (“TRG”) ended at 94.9%. • Reported retailer sales for our U.S. Malls and Premium Outlets were $739 per square foot. The Mills and TRG recorded sales levels of $677 per square foot and $1,140 per square foot, respectively. • The total return on our stock, including dividends, was 26.9%
FINANCIAL RESULTS AND OPERATING METRICS
We posted record and sector-leading financial results in 2024, including: • Consolidated revenue increased 5.4% to $5.96 billion (record) . • Net income was $2.37 billion, or $7.26 per diluted share. • FFO was $4.88 billion, or $12.99 per diluted share (record) . • Real Estate FFO was $4.60 billion, or $12.24 per diluted share (record) .
2024 Annual Report III
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