Simon 2019 Annual Report
significant opportunity. It is important to remember that we don’t just get the department store box back, but the surrounding acreage, as well. This is an opportunity for us to take control of unproductive land that, historically, we have not had access to, and redevelop the site with a diverse mix of uses that complements the destination. • For example, at Southdale Center, which incidentally was the first enclosed mall in the U.S., we recaptured a former J.C. Penney site, demolished the building and recently opened Life Time Edina at Southdale. We doubled the amount of square footage the former department store box occupied and opened a complex that includes a three-story Life Time athletic resort with rooftop beach club and bistro; Life Time Work co-working spaces; and Life Time Sport, an indoor turf facility for soccer and other sports. Southdale Center is the quintessential example of how great real estate continues to evolve. Southdale Center was the catalyst that sparked the growth of the American mall industry in the U.S. in 1956 and this same property, in 2019, is again at the epicenter of a growing trend that will redefine the industry. • At the end of 2019, we had 15 former department store space redevelopment projects under construction, including Phipps Plaza in Atlanta, Georgia, Northshore Mall in Peabody (Boston), Massachusetts, and Northgate in Seattle, Washington. These projects range in scope from new anchors to the addition of specialty retail, restaurants, fitness resorts, office and hotel. • We started construction on a new Premium Outlets project in Jenks (Tulsa), Oklahoma. Tulsa Premium Outlets will offer a dynamic mix of merchandise, amenities and experiences in a 340,000 square foot open air center. When complete, Tulsa Premium Outlets will be our 91st Premium Outlet Center, globally. • Since 2012, we have invested approximately $8 billion in redevelopment and new development projects. INTERNATIONAL • We opened Premium Outlets Querétaro, a 275,000 square foot outlet center located in Querétaro, Mexico. • Significant expansions were completed Yeoju Premium Outlets, both in Seoul, South Korea; Ashford Designer Outlet in Kent, United Kingdom; Noventa di Piave Designer Outlet in Venice, Italy; and Vancouver Designer Outlet in Vancouver, Canada. at Tosu Premium Outlets in Tosu, Japan; Paju Premium Outlets and
• Total gross costs invested in these seven international development projects was approximately $350 million with an average cash yield on cost of 9%. • In February, 2020, we opened Malaga Designer Outlet in Malaga, Spain and will open Siam Premium Outlets Bangkok in Bangkok, Thailand later this spring. • We have a new international development project under construction in Cannock, England projected to open in the fall of 2020. • We have significant expansions under construction at two of our highly productive centers in Japan, Gotemba Premium Outlets and Rinku Premium Outlets, both expected to open in mid-2020. • We received €134 million in cash dividends in 2019 from our investment in Klépierre and the return on our cash investment is 10.7%. LEASING • We signed nearly 4,000 leases totaling almost 15 million square feet in 2019. • We have the largest amount of market- leading brands including Apple, Sephora, and lululemon, as well as the world’s leading collection of luxury and international brands, like Louis Vuitton, Dior, Chanel and Ballenciaga located in our destinations. • Added more than 30 new entertainment/lifestyle concepts to our portfolio in 2019, including Life Time Athletic/Sport & Work, Pac-Man Zone, Round One, Orangetheory Fitness, Fieldhouse USA, and LEGOLAND Discovery Centre. • Opened more than 55 new restaurants across our portfolio ranging from fast casual to sophisticated dining, including Osteria Morini, Seasons 52, Water Grill, EMC Seafood, Texas de Brazil and Shake Shack. • Our portfolio generated over $4 billion in food sales in 2019 through more than 2,500 restaurants/dining pavilions. • Through our efforts to add new dining concepts, we have seen an 18% increase in portfolio food sales over the past six years. • Identified over 110 new and unique brands as part of our new business program, which resulted in over 185 new deals in 2019, including digital first concepts such as Fabletics, Warby Parker, Peloton, Casper, and UNTUCKit. We also teamed up with Hope & Henry to launch their first 15 physical stores.
MARKETING • We have more than 8.4 million social media followers with over 1.5 billion impressions. • Executed a digital display and video campaign to support local centers resulting in over 500 million impressions and 87 million video completions in 2019. In addition, digital campaigns achieved a 7% lift in incremental traffic among exposed viewers. • Developed a social media campaign to support local centers on Facebook and Instagram resulting in 920 million impressions and over 2.7 million center visits, which achieved a cost per visit which was 46% more efficient than prior year. • Implemented a successful campaign for Tax Free and Back-to-School shopping, including digital, social, video, streaming audio, and TV content that delivered over 445 million impressions and drove 4.7 million visits to our centers. • Implemented a high-impact campaign for Holiday shopping, including digital, social, video, streaming audio, and TV that delivered over 1 billion impressions. • Integrated additional dining actions (e.g., view a menu, book a table, order via an app, order via third party delivery service, order via the restaurant’s own website) across property websites driving additional volume for our dining tenants. • Introduced movie show times, trailers platform showcasing family-oriented programming, shopping, dining and entertainment at local centers across digital, on-center and social media. • Continued to grow our VIP Shopper Club and Mall Insider databases, to approximately 14 million members, and increased the cadence of our messaging focused on promotion of our new store openings, local programs and promotions, receipt and rewards for our loyal shoppers. unique opportunities to engage shoppers through a variety of media and activation opportunities tailored to their specific needs, supported by an unrivaled team of local, regional and national sales representatives committed to delivering turnkey, results-driven solutions to our clients. • Continued to see strong demand from our retail segment with brands like Nike, Coach, Adidas, Chanel, Dior and many others. and online ticket purchasing. • Expanded “Family at Simon” SIMON BRAND VENTURES • Provided brands and retailers with
SIMON PROPERTY GROUP, INC.
$ 5.8 billion
$ 2.4 billion
$ 4.3 billion FFO
$ 5.8 billion
$ 8.30 Dividends Per Share
ii
Consolidated Revenue
Consolidated Net Income
Our Share of Total NOI
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