Simon Property Group’s funds from operations as adjusted were USD573.3m, or USD1.66 per diluted share, for the quarter ended 31 December 2009.

FFO as adjusted excludes the impact of non-cash impairment charges. The company recorded impairment charges of USD88.1m, or USD0.26 per diluted share, during the period resulting in FFO of USD485.2m, or USD1.40 per diluted share.

Net income attributable to common stockholders as adjusted was USD164.8m, or USD0.58 per diluted share. Common stockholders' share of impairment charges was USD73.3m, or USD0.26 per diluted share, during the period resulting in net income attributable to common stockholders of USD91.5 m, or USD0.32 per diluted share.

For the year ended 31 December 2009, FFO as adjusted was USD1.977bn, or USD6.01 per diluted share. The company recorded impairment charges of USD228.6m, or USD0.68 per diluted share, during the period resulting in FFO of USD1.748bn, or USD5.33 per diluted share.

Net income attributable to common stockholders as adjusted was USD471.5m, or USD1.76 per diluted share. Common stockholders' share of impairment charges was USD188.4m, or USD0.71 per diluted share, during the period resulting in net income attributable to common stockholders of USD283.1m, or USD1.05 per diluted share.

"I am very pleased with our fourth quarter and full year financial and operational performance," says David Simon (pictured), chairman and chief executive officer. "We reported funds from operations as adjusted per share of USD1.66 for the quarter and USD6.01 for the year. In addition, our regional mall and premium outlet centre portfolios generated positive comparable property net operating income growth in 2009. These are significant accomplishments given the state of the US economy and the challenges faced by consumers in 2009."

The board of directors has approved the declaration of a quarterly common stock dividend of USD0.60 per share payable in cash. This dividend is payable on 26 February to stockholders of record on 16 February 2010.

On 8 December 2009, the company announced that it entered into a definitive agreement to acquire all of the outlet shopping centre business of Prime Outlets Acquisition Company and certain of its affiliated entities in a transaction valued at approximately USD2.325bn, including the assumption of Prime Outlets' existing indebtedness and preferred stock.

Under the terms of the agreement, the owners' interests in Prime Outlets will be acquired for equity consideration of approximately USD700m. The equity consideration to Prime Outlets' owners will generally be comprised of 80 per cent in cash and 20 per cent in common partnership units of the company's majority-owned partnership subsidiary, Simon Property Group L.P., which will be based on a ten day trading average of the company's common stock shortly before closing, subject to a ten per cent collar.

The Prime Outlets portfolio includes 22 outlet centres.

On 8 December 2009, the company announced that Simon Property Group L.P. entered into a new unsecured corporate credit facility providing an initial revolving borrowing capacity of USD3.565bn, an increase to the prior USD3.5bn revolver. The new facility contains an accordion feature allowing borrowing capacity to increase to as much as USD4.0bn and will mature on 31 March 2013.

As of 31 December 2009, the company had approximately USD4.3bn of cash on hand, including its share of joint venture cash, and an additional USD3.1bn of available capacity on Simon Property Group L.P.'s corporate credit facility.

On 19 January 2010 the company announced the sale by Simon Property Group L.P. of USD2.25bn of senior unsecured notes in an underwritten public offering. Net proceeds from the offering were used to fund Simon Property Group L.P.'s purchase of senior unsecured notes tendered in an any and all cash tender offer launched on 12 January. Book orders totalled USD10bn. 

"This recent capital market activity was well executed," says Simon. "We believe that it is a testament to our company's financial strength that we were able to expand the size of our new credit facility while extending the term to 2013, and that we obtained a significant extension of duration of our senior unsecured notes portfolio with no overall increase in our weighted average interest rate through our concurrent tender offer and sale of unsecured notes. With over USD7bn of available liquidity, we are exceptionally well-positioned."

Simon Property Group and Ivanhoe Cambridge (50/50 partners in Simon Ivanhoe, one of the company's two European joint venture investment entities) have entered into a definitive agreement to sell their interests in Simon Ivanhoe, which owns seven shopping centres located in France and Poland, to Unibail-Rodamco. Simon and Ivanhoe Cambridge are to receive consideration of EUR715 m for the assets, subject to customary post-closing adjustments. Simon expects the sale to result in a gain of approximately USD300m. The transaction is scheduled to close during the first half of 2010, subject to customary closing conditions and regulatory approvals.

Simon and Ivanhoe Cambridge have also agreed to venture with Unibail-Rodamco in the development of five retail projects in the Simon Ivanhoe development pipeline. Simon will own a 25 per cent interest in this pipeline.