FROM THE CHAIRMAN, CEO & PRESIDENT Dear Fellow Shareholders,
I am really pleased with our 2022 results and how we have positioned Simon Property Group (“SPG,” “Simon” or the “Company”) for future prosperity. We have fully bounced back from the toll of the COVID-19 pandemic. Retailer demand is strong. Our properties are getting better, excess supply is leaving the landscape, and e-commerce growth has decelerated as retailers acknowledge that it is simply not as profitable as physical stores (omnichannel is a must for retailers with a major emphasis on stores assuming profitability is a priority). This is leading to growth in our property cash flow. Importantly, we have proven on many fronts that our Company can handle adversity and bumps in the road. With that said, our well-located properties (whether enclosed or not) continue to lead the retail scene because they are properly maintained, leased and reinvigorated. Contrary to what the pundits have said, top malls have endured the growth of Walmart/Target, lifestyle centers, power centers, the proliferation of strip centers, e-commerce, retailer bankruptcies and the shut-down from the pandemic to name just a few. Don’t be discouraged by this at all, instead be comforted that our great malls have prospered in this ever-changing operating environment.
David Simon Chairman, Chief Executive Officer & President
Beneficial Interest of Combined NOI $6.1 Billion $4.5 FFO $5.3 Billion Consolidated Revenue
Over the last 30 years, our portfolio has not only grown in the number of malls we own, but also in other forms of complementary retail real estate, including our Premium Outlets ® , The Mills ® and our international business. Our scale and our quality have dramatically increased. We augmented our real estate with our fifth platform that includes opportunistic investments in leading companies and brands involved in retail operations, intellectual property assets and licensing, e-commerce marketplaces and recently, the asset and investment management businesses. The combination of our understanding of the evolving needs of the consumer and retailers, our access to capital and our thoughtful and flexible strategy has allowed us to construct a unique portfolio of thriving companies and property assets. Our growth over the years has clearly reinforced the strategy we have pursued and our operational excellence has been critical to achieving our leadership position. We have an unparalleled
Company positioned to continue to build upon the success we have so far achieved. We will never be satisfied with the status quo and we will continue to push ourselves to perform and excel. This is our 30th year as a public company, so the following will help illustrate my point: ■ Our annual Funds From Operations (“FFO”), an important industry measure, has grown from $150 million at the time of our IPO to approximately $4.5 billion in 2022. ■ We have increased the Company’s annual FFO generation by nearly 30 times since our IPO. ■ Our beneficial interest of combined Net Operating Income (“NOI”) has increased from approximately $300 million to more than $6 billion over the last 30 years. ■ In 1993, our portfolio consisted of 114 properties primarily middle-market malls in the Midwest. Today, our diversified portfolio includes over 250 properties across our platforms in 37 states and 14 countries.
Billion
$2.6 Cash Dividends Paid
Billion
II
SIMON PROPERTY GROUP, INC.
Powered by FlippingBook