The Forum Shops at Caesars Palace, Las Vegas, NV
When you consistently grow over multiple decades, no matter the economic cycles or competition you face, you develop an understanding of your strengths and who you are. This understanding, coupled with our conviction, will fuel future growth. We continually set the bar higher as property owners and stewards of capital. This is not new, and after 30 years, it’s fun to look back, at least momentarily; but more importantly, we are positioned to make our future even more prosperous.
• Our share of Portfolio NOI, including international properties on a constant currency basis, grew 4.9%, or $258 million, to $5.57 billion (record) . • We generated approximately $1.8 billion of cash flow, after our dividend payments of $2.8 billion. • Occupancy for our U.S. Malls and Premium Outlets ® increased 90 basis points and ended the year at 95.8%, The Mills ® occupancy ended the year at 97.8% and Taubman Realty Group (“TRG”) ended at 95.7%. • Reported retailer sales for our U.S. Malls and Premium Outlets were $743 per square foot. The Mills and TRG recorded sales levels of $677 per square foot and $1,132 per square foot, respectively. • The total return on our stock, including dividends, was more than 29% and outperformed the S&P 500. DEVELOPMENT INCLUDING THE ADDITION OF MIXED-USE COMPONENTS • We completed thirteen redevelopment projects across all our platforms in the U.S. during the year. • We opened 36 anchor/specialty tenants in 2023 and expect to open at least 50 over the next two years.
• We continue to add mixed-use components to our market-leading real estate with more than 750 hotel and residential units to open in 2024 and 2025 at high-quality centers such as St. Johns Town Center in Jacksonville, Florida, and Northgate Station in Seattle, Washington; with entitlements for approximately 2,200 units/keys to be added over the next several years. • We continue to build new projects. We will open a new Premium Outlet Center in Tulsa, Oklahoma, in the fall of this year. • Supply and demand are in our favor (less supply and more demand); given our financial strength, we continue to look at specific high-quality new development. We can build while others need to rely on construction financing and that is a tall order in today’s financial climate. INTERNATIONAL • Our international portfolio includes 23 Premium Outlets and 12 Designer Outlets in 13 countries, a 22.4% interest in Klépierre (which owns more than 130 properties in 14 European countries), and four mall properties in Asia.
With that backdrop, let’s turn to our 2023 highlights.
FINANCIAL RESULTS AND OPERATING METRICS We posted record and sector-leading financial results in 2023, including: • Consolidated revenue increased approximately 7% to $5.66 billion. • Net income was $2.28 billion, or $6.98 per diluted share. • FFO was $4.69 billion, or $12.51 per diluted share (record) . • Our share of Domestic Property NOI grew 4.8%, or $240 million year-over-year, to $5.26 billion (record) .
SIMON PROPERTY GROUP, INC
IV
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