On this page of StockholderLetter.com we present the latest annual shareholder letter from SIMON PROPERTY GROUP INC /DE/ — ticker symbol SPG. Reading current and past SPG letters to shareholders can bring important insights into the investment thesis.
2023 ANNUAL REPORT
CONTENTS
From the Chairman, CEO & President
Financial Highlights
Investment Highlights
Board of Directors & Management
II
V
X
XII
10-K
Management   s Discussion & Analysis
Financial Statements
1
59
78
King of Prussia, King of Prussia, PA
LIVE
WORK
PLAY
STAY
SHOP
FROM THE CHAIRMAN, CEO & PRESIDENT
DEAR FELLOW
SHAREHOLDERS,
DAVID SIMON
Chairman,
Chief Executive Officer
& President
By and large, I don   t reflect on the past, including Simon Property
Group   s (   SPG   ,    Simon    or the    Company   ) accomplishments; however,
milestones, including anniversaries, are a time to reflect. They also can
provide perspective and help guide future actions. In other words, learn
from mistakes made and double down on what has been successful.
Here at SPG, we have done that and learned where we are proficient
and where we need to improve.
With that in mind, December 2023 marked three decades since
Simon became a publicly traded company. It is with a sense of
accomplishment that I address you on this significant milestone in our
Company   s history. This 30-year journey has been an adventure (some
may call it a rollercoaster) of growth, resilience, perseverance, and
innovation in becoming the world   s preeminent owner and operator
of best-in-class retail real estate properties, with scale.
$5.7
Billion
Consolidated
Revenue
$4.7
Billion
FFO
$6.2
Billion
Beneficial Interest
of Combined NOI
$2.8
Billion
Cash Dividends
Paid
II
SIMON PROPERTY GROUP, INC
From those early days of being public
to SPG   s 30th anniversary, our successes
are testaments to the collective efforts,
vision, and unwavering support of many.
Our ability to navigate the ups and
downs of the last 30 years and hone
in on what our core competencies are,
while learning from missteps, has led
to the Company we have today. We are
strong, prosperous and poised for future
growth. We embraced our past, but
our instincts were to grow in scale and
quality, find new markets and product
types, create a fortress balance sheet,
and innovate (think outside the box).
Always focused on both the micro (how
to make the property better) and the
macro (positioning the Company for
decades to come). We met challenges
with determination, capitalized on
opportunities when we identified them
and maintained our relentless pursuit
of operating excellence. Some fun facts
backing this up:
    From our base of 115 properties
in 1993, we have acquired more
than 300 properties, developed
more than 50 and disposed of
approximately 250, resulting in our
current domestic portfolio of 215
high-quality properties. The average
occupancy of our portfolio increased
from 85.6% to 95.8%; retailer sales
productivity increased from $240
per square foot to $743 per square
foot; and average base minimum rent
increased from $16.91 to $56.82.
    We expanded globally and today have
35 international outlets, including
world-renowned outlets in Asia.
    Our portfolio is differentiated by
product type, geography, and
enclosed and open-air centers,
primarily located in large and
growing catchment areas.
    We are the largest landlord to the
world   s most important retailers as
we are focused on a well-curated
merchandise mix that generates
high sales productivity.
Desert Hills Premium Outlets, Cabazon, CA
    Our diversified tenant mix is
always changing and adapting, best
illustrated by the fact that, compared
to 30 years ago, only one retailer
at that time is still a current top 10
tenant. Evolving retailers is the only
constant and is not feared, but part of
our everyday business as it allows us
to meet the ever-changing demands
of the consumer.
leasing activities, efficient property
management, rigorous capital allocation
criteria, and a disciplined capital
structure. This commitment enables
us to produce impressive financial
results and maintain flexibility so we
can be opportunistic. It is with great
appreciation and admiration for the
entire organization that I would like to
highlight some of our achievements over
the last three decades (1993     2023):
Growth can lead to over-expansion
that risks the financial soundness of a
company and, let   s face it, we have seen
this with other real estate companies
in our sector time and again. This
has not happened at SPG as our top
management team and strong balance
sheet (always a priority) enabled us
to grow, but also manage through
exogenous events, such as the Great
Financial Crisis and Covid, as well as
seismic changes in our industry including
the growth of digital commerce.
    Consolidated revenue increased
from $424 million to nearly
$5.7 billion (9% CAGR).
Consistent outperformance in cash
flow growth, value creation and returns
to shareholders, have been, and we
expect will continue to be, hallmarks
of Simon. We are committed to our
    Funds from Operations (   FFO   ),
an important industry measure,
increased 30-times, from
approximately $150 million to
nearly $4.7 billion (12% CAGR).
    Our beneficial interest of combined
Net Operating Income (   NOI   )
has increased from approximately
$300 million to more than
$6.2 billion (11% CAGR).
    Total market capitalization has
increased from approximately
$3 billion to $90 billion.
    Our balance sheet became investment
grade rated in 1995 and has received
an A rating since 2006.
    We have paid over $42 billion
in dividends to shareholders.
    Ownership of SPG common
stock provided a total return
to shareholders of 3,100%.
During the last 30 years, many pundits
have tried to kill off retail real estate
(especially enclosed malls) and yet, even
with the drumbeat of these constant
naysayers, this has only made us more
focused, determined to prove them
wrong. The combination of our historical
successes and our vision of where we
want to take SPG in the future reinforces
our optimism.
We have shopping centers in our portfolio
that have been in business for more than
60 years. These centers are still growing
today, with many generating $100 million
or more in annual NOI, as they are in
great locations, have a large and loyal
customer base, and have a diverse set of
tenants. No other real estate type has the
longevity, including the NOI generation
and embedded future growth, that these
centers have. Yes, they change, evolve,
adapt, but they grow! Our portfolio
cannot be replaced and is undervalued.
2023 ANNUAL REPORT
III
 • shareholder letter icon 3/27/2024 Letter Continued (Full PDF)
 • stockholder letter icon 3/23/2023 SPG Stockholder Letter
 • stockholder letter icon More "REITs" Category Stockholder Letters
 • Benford's Law Stocks icon SPG Benford's Law Stock Score = 96


SPG Shareholder/Stockholder Letter Transcript:

2023 ANNUAL REPORT

CONTENTS
From the Chairman, CEO & President
Financial Highlights
Investment Highlights
Board of Directors & Management
II
V
X
XII
10-K
Management   s Discussion & Analysis
Financial Statements
1
59
78
King of Prussia, King of Prussia, PA

LIVE
WORK
PLAY
STAY
SHOP

FROM THE CHAIRMAN, CEO & PRESIDENT
DEAR FELLOW
SHAREHOLDERS,
DAVID SIMON
Chairman,
Chief Executive Officer
& President
By and large, I don   t reflect on the past, including Simon Property
Group   s (   SPG   ,    Simon    or the    Company   ) accomplishments; however,
milestones, including anniversaries, are a time to reflect. They also can
provide perspective and help guide future actions. In other words, learn
from mistakes made and double down on what has been successful.
Here at SPG, we have done that and learned where we are proficient
and where we need to improve.
With that in mind, December 2023 marked three decades since
Simon became a publicly traded company. It is with a sense of
accomplishment that I address you on this significant milestone in our
Company   s history. This 30-year journey has been an adventure (some
may call it a rollercoaster) of growth, resilience, perseverance, and
innovation in becoming the world   s preeminent owner and operator
of best-in-class retail real estate properties, with scale.
$5.7
Billion
Consolidated
Revenue
$4.7
Billion
FFO
$6.2
Billion
Beneficial Interest
of Combined NOI
$2.8
Billion
Cash Dividends
Paid
II
SIMON PROPERTY GROUP, INC
From those early days of being public
to SPG   s 30th anniversary, our successes
are testaments to the collective efforts,
vision, and unwavering support of many.
Our ability to navigate the ups and
downs of the last 30 years and hone
in on what our core competencies are,
while learning from missteps, has led
to the Company we have today. We are
strong, prosperous and poised for future
growth. We embraced our past, but
our instincts were to grow in scale and
quality, find new markets and product
types, create a fortress balance sheet,
and innovate (think outside the box).
Always focused on both the micro (how
to make the property better) and the
macro (positioning the Company for
decades to come). We met challenges
with determination, capitalized on
opportunities when we identified them
and maintained our relentless pursuit
of operating excellence. Some fun facts
backing this up:
    From our base of 115 properties
in 1993, we have acquired more
than 300 properties, developed
more than 50 and disposed of
approximately 250, resulting in our
current domestic portfolio of 215
high-quality properties. The average
occupancy of our portfolio increased
from 85.6% to 95.8%; retailer sales
productivity increased from $240
per square foot to $743 per square
foot; and average base minimum rent
increased from $16.91 to $56.82.
    We expanded globally and today have
35 international outlets, including
world-renowned outlets in Asia.
    Our portfolio is differentiated by
product type, geography, and
enclosed and open-air centers,
primarily located in large and
growing catchment areas.
    We are the largest landlord to the
world   s most important retailers as
we are focused on a well-curated
merchandise mix that generates
high sales productivity.

Desert Hills Premium Outlets, Cabazon, CA
    Our diversified tenant mix is
always changing and adapting, best
illustrated by the fact that, compared
to 30 years ago, only one retailer
at that time is still a current top 10
tenant. Evolving retailers is the only
constant and is not feared, but part of
our everyday business as it allows us
to meet the ever-changing demands
of the consumer.
leasing activities, efficient property
management, rigorous capital allocation
criteria, and a disciplined capital
structure. This commitment enables
us to produce impressive financial
results and maintain flexibility so we
can be opportunistic. It is with great
appreciation and admiration for the
entire organization that I would like to
highlight some of our achievements over
the last three decades (1993     2023):
Growth can lead to over-expansion
that risks the financial soundness of a
company and, let   s face it, we have seen
this with other real estate companies
in our sector time and again. This
has not happened at SPG as our top
management team and strong balance
sheet (always a priority) enabled us
to grow, but also manage through
exogenous events, such as the Great
Financial Crisis and Covid, as well as
seismic changes in our industry including
the growth of digital commerce.
    Consolidated revenue increased
from $424 million to nearly
$5.7 billion (9% CAGR).
Consistent outperformance in cash
flow growth, value creation and returns
to shareholders, have been, and we
expect will continue to be, hallmarks
of Simon. We are committed to our
    Funds from Operations (   FFO   ),
an important industry measure,
increased 30-times, from
approximately $150 million to
nearly $4.7 billion (12% CAGR).
    Our beneficial interest of combined
Net Operating Income (   NOI   )
has increased from approximately
$300 million to more than
$6.2 billion (11% CAGR).
    Total market capitalization has
increased from approximately
$3 billion to $90 billion.
    Our balance sheet became investment
grade rated in 1995 and has received
an A rating since 2006.
    We have paid over $42 billion
in dividends to shareholders.
    Ownership of SPG common
stock provided a total return
to shareholders of 3,100%.
During the last 30 years, many pundits
have tried to kill off retail real estate
(especially enclosed malls) and yet, even
with the drumbeat of these constant
naysayers, this has only made us more
focused, determined to prove them
wrong. The combination of our historical
successes and our vision of where we
want to take SPG in the future reinforces
our optimism.
We have shopping centers in our portfolio
that have been in business for more than
60 years. These centers are still growing
today, with many generating $100 million
or more in annual NOI, as they are in
great locations, have a large and loyal
customer base, and have a diverse set of
tenants. No other real estate type has the
longevity, including the NOI generation
and embedded future growth, that these
centers have. Yes, they change, evolve,
adapt, but they grow! Our portfolio
cannot be replaced and is undervalued.
2023 ANNUAL REPORT
III



shareholder letter icon 3/27/2024 Letter Continued (Full PDF)
 

SPG Stockholder/Shareholder Letter (SIMON PROPERTY GROUP INC /DE/) | www.StockholderLetter.com
Copyright © 2023 - 2025, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.