Simon Property Group Q3'24 Soundbites - 11/1/24
1. "We saw increased leasing volumes, occupancy gains and total retail sales volumes. Demand for our space from a broad spectrum of tenants is strong and steady and we continue to strengthen our unique retail real estate platform through our growing development and redevelopment pipeline."
2. "Malls and outlet occupancy at the end of Q3 was 96.2%, an increase of 1% yoy. The mills occupancy was 98.6% at the end of the quarter."
3. "Average base minimum rent for the malls and outlets increased 2.3% yoy and the mills increased 4.5% yoy."
4. "We signed approximately 1,200 leases for 4 MSF in the quarter. Through the first nine months of 2024, we have signed more than 3,900 leases for 15 MSF, which is expected to generate more than $1B of revenue."
5. "Reported retailer sales per square foot was $737 for the mall and premium outlets combined and was up approximately 1% yoy, excluding two retailers."
6. "We issued $1B in senior notes with a term of 10 years and a 4.75% interest rate. This was clearly good timing on our part. During the first nine months of the year, we completed refinancings of 14 property mortgages for a total of approximately $1.3B at an average rate of 6.13%."
7. "Construction costs are up 60% from pre-pandemic levels. We’re basically one of the few that can build and overcome that. So there is no real new supply and that does put us in a positive light."
8. "Fashion Valley is a great opportunity where we’re going to get the JCPenney space back and probably do about a $500M redevelopment between retail and mixed-use."
9. "Our residential pipeline, is over $1B today and we continue to see an interesting relationship between residential development adjacent or part of our existing retail format."
10. "We just approved a deal at The Shops at Clearfork, which is an open-air shopping destination in the heart of Fort Worth, with our partner to build office and retail on the ground floor. The office is going to be 50K SF and Wells is going to take the majority of it."
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Site Selector - We help clients find off market properties, specializing in big box retail properties - focused on grocery anchored centers.
3moJust finished your book and appreciate your blog posts, Brad. Good stuff as always. Cheers.