News Column

SIMON PROPERTY GROUP INC /DE/ FILES (8-K) Disclosing Other Events

May 7, 2014



Item 8.01. Other Events

In anticipation of discussions with investors, Simon Property Group, Inc. is providing the following selected financial information regarding the expected results of Washington Prime Group Inc. (WPG) for the quarter ended March 31, 2014:

Net Operating Income (NOI), at share, for the first quarter of 2014 is expected to be $103.2 million, as compared to $102.5 million for the prior year period, or an increase of 70 basis points.

Net income for the first quarter of 2014 is expected to be $ 41.5 million, as compared to net income for the prior year period of $55.9 million, for which the prior year period includes gains realized on the sale of properties of $14.2 million.

First quarter 2014 ending occupancy for the portfolio is expected to be 92.2%, an increase of 120 basis points over ending occupancy for the prior year period.

First quarter 2014 ending base minimum rent per square foot is expected to be $18.92 per foot, as compared to base minimum rent per square foot of $18.86, or an increase of 30 basis points.

First quarter 2014 leasing spread over expiring rents was an increase of 200 basis points.

This report contains information about NOI, a measure of financial or operating performance that is not specifically defined by generally accepted accounting principles (GAAP) in the United States. Reconciliations of this non-GAAP measure to the most directly comparable GAAP measure follows:

For the Three Months Ended March 31, (in thousands) 2014 2013 Reconciliation of net income to share of NOI: Consolidated net income $ 41,502 $ 55,853 Income and other taxes 75 78 Interest expense 13,917 13,719 Gain on sale of interests in properties (242 ) (14,152 ) Income from unconsolidated entities (345 ) (293 ) Depreciation and amortization of consolidated properties 45,968 45,299 NOI of consolidated properties 100,875 100,504 NOI of unconsolidated entities 10,437 10,632 NOI of discontinued unconsolidated properties 39 1,177 Less the joint venture partners' share of NOI (8,194 ) (9,843 ) WPG share of NOI $ 103,157 $ 102,470 Increase in our share of NOI from prior period 0.7 %



NOI is a standard performance measure in the REIT business and we believe NOI provides investors with additional information concerning its operating performance and a basis to compare its performance with the performance of other REITs. We also use this measure internally to monitor the operating performance of the portfolio. Our computation of this non-GAAP measure may not be the same as similar measures reported by other REITs. Further, the non-GAAP financial measure used in this report should not be considered as an alternative to net income as a measure of our operating performance or to cash flows computed in accordance with GAAP as a measure of liquidity nor is it indicative of cash flows from operating and financial activities.

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Source: Edgar Glimpses