Simon Property Group Provides 2006 FFO and Earnings Guidance
INDIANAPOLIS, Jan. 11 /PRNewswire-FirstCall/ -- Simon Property Group, Inc.
(the "Company" or "Simon") (NYSE: SPG) today provided estimates of 2006 funds
from operations ("FFO") per share and net income per share. The Company
expects diluted FFO to be within a range of $5.20 to $5.32 per share for the
year ending December 31, 2006, and diluted net income per share to be within a
range of $1.71 to $1.83. The Company considers FFO a key measure of its
operating performance that is not specifically defined by accounting
principles generally accepted in the United States ("GAAP"). The Company
believes that FFO is helpful to investors because it is a widely recognized
measure of the performance of real estate investment trusts and provides a
relevant basis for comparison of performance among REITs.
The Company's 2006 guidance is based upon its internal budgeting and
planning process and management's view of current market conditions, including
those in the retail real estate business. Assumptions for 2006 for the
Company's U.S.-based assets include:
Regional Outlet(R) Lifestyle
Malls Centers Centers
Occupancy at December 31, 2006 92.5 to 93.5% 98 to 99% 91 to 93%
Releasing spread 15 to 25% 15 to 25% 5 to 15%
Comparable property NOI growth 2.5 to 3.5% 4.0 to 5.0% 2.0 to 3.0%
The 2006 guidance assumes timely completion of the Company's previously
announced development activities; includes no future acquisition or
disposition activities other than the impact in 2006 from 2005 activity; and
contemplates stable retail and capital market environments.
The 2006 guidance also assumes an interest rate environment that is
consistent with the current forward yield curves for one month LIBOR and the
10 Year U.S. Treasury note.
The following table provides the reconciliation of the range of estimated
diluted net income per share to estimated diluted FFO per share.
For the twelve months ended December 31, 2006
Estimated diluted net income per share $1.71 $1.83
Depreciation and amortization including our share of
joint ventures 3.57 3.57
Impact of additional dilutive securities (0.08) (0.08)
Estimated diluted FFO per share $5.20 $5.32
Estimates of future net income and FFO per share, and other statements
regarding future developments and operations, are forward-looking statements
within the meaning of the federal securities laws. Forward-looking statements
often contain words such as "estimated," "expects," "anticipates," "intends,"
"plans," "believes," "seeks," or "will." Actual results may differ materially
from those indicated by forward-looking statements due to a variety of risks
and uncertainties. Those risks and uncertainties include, but are not limited
to, international, national, regional and local economic climates, competitive
market forces, changes in market rental rates, trends in the retail industry,
the inability to collect rent due to the bankruptcy or insolvency of tenants
or otherwise, risks associated with acquisitions, the impact of terrorist
activities, environmental liabilities, pending litigation, maintenance of REIT
status, changes in applicable laws, rules and regulations, changes in market
rates of interest and fluctuations in exchange rates of foreign currencies.
The reader is directed to the Company's various filings with the Securities
and Exchange Commission for a discussion of such risks and uncertainties. The
Company undertakes no obligation to publicly update or revise any forward-
looking statements whether as a result of new information, future events or
Simon Property Group, Inc., headquartered in Indianapolis, Indiana, is a
real estate investment trust engaged in the ownership, development and
management of retail real estate, primarily regional malls, Premium Outlet(R)
centers and community/lifestyle centers. The Company's current total market
capitalization is approximately $41 billion. Through its subsidiary
partnership, it currently owns or has an interest in 286 properties in the
United States containing an aggregate of 200 million square feet of gross
leasable area in 39 states plus Puerto Rico. Simon also owns interests in 51
European shopping centers in France, Italy, and Poland; 5 Premium Outlet(R)
centers in Japan; and one Premium Outlet(R) center in Mexico. Additional
Simon Property Group information is available at http://www.simon.com .
SOURCE Simon Property Group, Inc.
CONTACT: Investors: Shelly Doran 317-685-7330
Media: Les Morris
317-263-7711 both of Simon Property Group, Inc.