|Simon Property Group Schedules 2004 Fourth Quarter Earnings Release and Conference Call and Provides 2005 FFO and Earnings Guidance|
INDIANAPOLIS, Jan 13, 2005 /PRNewswire-FirstCall via COMTEX/ -- Simon Property Group, Inc. (the "Company" or "Simon") (NYSE: SPG) announced today that financial results for the quarter and year ended December 31, 2004, will be released before the market opening on February 10, 2005. The Company will host its quarterly earnings conference call and an audio webcast on February 10th at 2:00 p.m. Eastern Standard Time.
The live webcast will be available in listen-only mode at http://www.simon.com (About Simon tab), http://www.fulldisclosure.com and http://www.streetevents.com . If you are unable to participate during the live webcast, an audio replay will be available beginning at 5:00 p.m. Eastern Standard Time on February 10, 2005, and will be available until midnight, February 25, 2005, by dialing 1-888-286-8010 and entering the passcode "51809722". The call will also be archived on http://www.simon.com , http://www.fulldisclosure.com and http://www.streetevents.com for approximately 90 days.
Today the Company also provided estimates of 2005 funds from operations ("FFO") per share and net income per share. The Company expects diluted FFO to be within a range of $4.70 to $4.82 per share for the year ending December 31, 2005, and diluted net income per share to be within a range of $1.96 to $2.08. 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 2005 guidance is based upon its budgeting process and management's view of current market conditions, including those in the retail real estate business. Assumptions for 2005 for the Company's U.S.-based assets include:
Regional Premium Community Malls Outlets(R) Centers Occupancy at December 31, 2005 92 to 93% 98 to 99% 91 to 93% Releasing spread 15 to 25% 8 to 15% 5 to 15% Comparable property NOI growth 2.5 to 3.5% 3.0 to 4.0% 2.0 to 3.0%
The 2005 guidance also assumes an increasing interest rate environment (with one-month LIBOR increasing to 3.8% by 12/31/05); timely completion of the Company's previously announced development activities; no acquisition or disposition activities other than the sale of the Company's interest in Metrocenter in Phoenix, Arizona; and a stable retail environment.
The following table provides the reconciliation of estimated diluted net income per share to diluted FFO per share.
For the twelve months ended December 31, 2005 Low High Range Range Estimated diluted net income per share, excluding gain/loss on the sale of real estate $1.96 $2.08 Depreciation and amortization including joint ventures 2.79 2.79 Impact of additional dilutive securities (0.05) (0.05) Estimated diluted FFO per share $4.70 $4.82 Forward-Looking Statements
Estimates of future per share net income and FFO, 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 "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, the national, regional and local economic climate in the U.S. as well as the foreign markets where the Company does business, 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, acquisitions and dispositions, changes in applicable laws, rules and regulations, and changes in market rates of interest, foreign currency and exchange rates. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K 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 otherwise.
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 shopping centers. The Company's current total market capitalization is approximately $36 billion. Through its subsidiary partnerships, it currently owns or has an interest in 298 properties in North America containing an aggregate of 202 million square feet of gross leasable area in 39 states plus Puerto Rico, Canada and Mexico. Simon also holds interests in 49 European shopping centers in France, Italy, Poland and Portugal and 4 Premium Outlet centers in Japan. Additional Simon Property Group information is available at http://www.simon.com .
SOURCE Simon Property Group, Inc.
Investors: Shelly Doran, +1-317-685-7330, or Media: Les Morris, +1-317-263-7711, bot of Simon Property Group, Inc.