This forces us to adjust somewhat these cap rates. Malls and Premium Outlets Operating StatisticsUnrealized gains (losses) in fair value of equity instruments(Loss) gain on sale or disposal of, or recovery on,assets and interests in unconsolidated entities and impairment, netNet income attributable to noncontrolling interests Accounts payable, accrued expenses, intangibles, and deferred revenuesCash distributions and losses in unconsolidated entities, at equityLimited partners' preferred interest in the Operating Partnership and noncontrollingCapital stock (850,000,000 total shares authorized, $ 0.0001 par value, 238,000,000shares of excess common stock, 100,000,000 authorized shares of preferred stock):Series J 8 3/8% cumulative redeemable preferred stock, 1,000,000 shares authorized,796,948 issued and outstanding with a liquidation value of $39,847Common stock, $ 0.0001 par value, 511,990,000 shares authorized, 320,555,104 andClass B common stock, $ 0.0001 par value, 10,000 shares authorized, 8,000Common stock held in treasury, at cost, 14,667,884 and 13,574,296 shares, respectivelyGain on sale or disposal of assets and interests in unconsolidated entities, netNote: The above financial presentation does not include any information related to our investments in Klépierre S.A.("Klépierre") and HBS Global Properties ("HBS"). Active contributors also get free access to SA Premium. This implies that we will use cap rates ranging from 6.90% (6.65% + 0.25%) to 7.70% (7.20% + 0.50%).To take into account the increased risk stemming from international assets, we use an additional 100bps risk premium for these properties. View the latest Simon Property Group Inc. (SPG) stock price, news, historical charts, analyst ratings and financial information from WSJ. We also assume that the retailers will fail to adjust their business models consequently. From the Overall, we are highly confident in the management's capacity to implement value-generating initiatives on their assets. Simon Property Group, Inc. Real Estate Development. This is fully in line with private market valuation.Editor's note: Seeking Alpha is proud to welcome Reflex Research as a new contributor.
FFO is a performance measure that is standard in the REIT business.
As such, the final cap rate is a weighted average between the cap rate for domestic and non-domestic assets, where the weight depends on the share of NOI generated by each category of properties.
A starting point is the "The cap rates from CBRE Research were estimated as of the 4th quarter 2019.
The company's main market is the USA, with 92% of its net operating income (NOI) generated on US soil.
However, we view any venture outside the strict realm of real estate as increasing substantially the operational risk of the company. Simon Property Group and Brookfield Are Leading Bidders to Buy Bankrupt J.C. Penney The retailer's landlords have a more valuable proposition to offer than higher bids do. The underlying portfolio is composed of Class A retail properties with a Gross Book Value of $41.9 billion, including JVs (More importantly, the credit market has demonstrated its continuous confidence in the company.
Its net debt to net operating income ratio … Simon Property Group is conserving financial resources by reducing its quarterly dividend. For further information on Klépierre, reference should be made to financial information in Klépierre's public filings and additional discussion and analysis in our Form 10-K.This report contains measures of financial or operating performance that are not specifically defined by GAAP, including FFO and FFO per share. Simon (PRNewsfoto/Simon) More Simon has reopened 199 of its 204 U.S. retail properties in 37 states which represent more than 95% of the Company's property net operating income ("NOI… Or, conversely, is the market still processing information and we should expect further cap rate increases?
This means that this crisis will amplify the secular downward trend in physical shopping. We believe that, at the current share price of $61.20 (close price on Thursday August 6, 2020), Simon Property Group (SPG is the biggest US retail-focused REIT with a current market cap of roughly $18.7 billion. As such, any prospective investor needs to have the nerves and the wallet to endure the long and bumpy road ahead.Finally, we must stress that, despite the use of scenarios, this article presents a static view of SPG.