“We have paid more than $42 billion in dividends over our 30-year history as a public company.”
• We have paid more than $42 billion in dividends over our 30-year history as a public company. At our current dividend rate, by the second quarter of 2024, we will have cumulatively paid approximately $135.00 per share in dividends since our IPO. Quite an impressive number considering that our IPO price was $22.25 per share! • Our dividend payout ratio is approximately 60% and is well covered. • Earlier this year, your Board of Directors authorized a new $2 billion stock repurchase program. BALANCE SHEET • Thoughtful balance sheet management is a fundamental strength of our Company, and we continue to have the strongest balance sheet in our industry. This is critical with all the current noise on the commercial real estate front. Our ability to access capital is unmatched. • We were highly active in the debt capital markets, completing more than $12 billion of financing activities: − We completed three senior notes offerings totaling approximately $3.1 billion. − We recast and upsized our primary revolving credit facility to $5.0 billion. − We completed $4.0 billion of secured loan refinancings and extensions.
• Our balance sheet provides a distinct advantage and should not be overlooked. We have strong investment grade credit ratings of A-/A3, financial flexibility and access to multiple sources of capital that, when coupled with our excess cash flow, enable us to pursue growth opportunities. CLOSING In summary, we have learned a lot over the past 30 years that will guide us as we continue to drive SPG forward. Our business has always changed, and it will continue to do so, but our people, our vision, our financial discipline, and our culture will continue to be our guiding light. We will continue to be innovative, creating memorable, unique experiences for shoppers, retailers and communities alike. Our sound financial position will enable us to invest in future growth opportunities. I look forward to another rewarding year in 2024. With the hard work of my colleagues at Simon we anticipate delivering the kind of results you, our shareholders, have come to expect from us. I want to thank our Board of Directors for their input and guidance. I also thank you, our shareholders, for your support and confidence. Your comments and thoughts are always welcome and appreciated.
• Our properties deliver more than $5 billion in revenue to state and local governments through property tax payments and sales tax generated from tenants’ sales. This is greatly appreciated by the communities where we operate. • We are most proud of Simon Youth Foundation (“SYF”), which, in 2023, celebrated 25 years of helping thousands of students reach graduation day each year. Through 32 Simon Youth Academies in 12 states, and in partnership with local public school districts, SYF has maintained an average lifetime graduation rate of 91% with more than 28,000 students graduated and has awarded more than $21 million in scholarships. SYF alumni are graduates from State and Community Colleges, Historically Black Colleges and Universities (HBCUs), and Ivy League schools. We humbly ask for our shareholders to learn more about SYF and support the cause ( www.syf.org ).
RETURNING CAPITAL TO SHAREHOLDERS
• Capital returned to shareholders in 2023 totaled $2.9 billion, comprised of $2.8 billion in dividends and $140 million in share buybacks. • Common stock dividends paid in 2023 were $7.45 per share, an increase of 8.0% from 2022, and we expect to distribute at least $7.80 per share in 2024.
• Our liquidity was nearly $11 billion at year-end.
DAVID SIMON Chairman, Chief Executive Officer & President March 20, 2024
2023 ANNUAL REPORT
IX
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