Simon Property 2022 earnings lift, exchanges Eddie Bauer stake for ABG equity

By

Benjamin Fitzgerald

Published
Feb 9, 2023

Mall owner Simon Property announced this week total full-year 2022 revenues of $5.3 billion, on the back of a strong fourth quarter that resulted in total revenues of $1.4 billion, up from $1.3 billion in the prior-year.

The Indianapolis-based company said quarterly net income attributable to common stockholders was $673.8 million, or $2.06 per diluted share, compared to $503.2 million, or $1.53 per diluted share in 2021. 

For the year, net income attributable to common stockholders was $2.136 billion, or $6.52 per diluted share, compared to $2.246 billion, or $6.84 per diluted share in 2021. 

The company said U.S. mall and premium outlet occupancy was 94.9% at December 31, compared to 93.4% last year, an increase of 1.5%. Base minimum rent per square foot was $55.13, compared to $53.91 at December 31, 2021, an increase of 2.3%.

Reported retailer sales per square foot was $753, an increase of 5.6% for the trailing 12 months ended December 31, 2022, the company added.

In October, Fukaya-Hanazono Premium Outlets (Fukaya City, Tokyo, Japan) opened with 296,300 square feet of high-quality, name brand stores, marking the company's tenth Premium Outlet Center in Japan. 

Construction continues on redevelopment projects including The Falls (Miami, FL), Northgate Station (Seattle, WA), Southdale Center (Edina, MN), St. John's Town Center (Jacksonville, FL), Stanford Shopping Center (Palo Alto, CA) and Towne East Square (Wichita, KS), said Simon in a press release.

"I am extremely pleased with our fourth quarter results, concluding another successful and productive year for our company," said David Simon, chairman, chief executive officer and President.

"In 2022, we generated Funds From Operations of $4.5 billion and returned $2.8 billion to shareholders in cash dividends and share repurchases.  We executed over 14 million square feet of leases, completed 14 redevelopment and densification projects and opened a new Premium Outlet in Japan.  We continue to strengthen our portfolio through our innovative and disciplined investment activities that will allow us to continue to deliver long-term cash flow growth."

During its fourth-quarter earnings call, the Simon Property CEO revealed his company has also sold its interest in its Eddie Bauer licensing joint venture in exchange for additional equity ownership in Authentic Brands Group.

In June 2021, Authentic Brands Group and SPARC Group, a joint venture between Authentic and Simon Property Group, completed the acquisition of Eddie Bauer, including its 300 stores and e-commerce business, from a unit of Golden Gate Capital.