Terms

Series

8 3/8% Series A Cumulative Redeemable Preferred Stock (Simon 8 3/8% Preferred Stock)

Liquidation Preference

$50.00

Coupon Rate

8.375%

Rate Type

Fixed

Annual Dividend

$4.19

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

October 15, 2027

First Call Price

$50.00

Capital Stack Ranking

Junior To: Each Class Or Series Of Simon'S Capital Stock Whose Terms Provide That Such Class Or Series Ranks Senior To The Simon 8 3/8% Preferred Stock; Pari Passu With: Simon'S Other Outstanding Preferred Stock, Simon 6% Convertible Preferred Stock, Any Class Or Series Not By Its Terms Junior Or Senior To The Simon 8 3/8% Preferred Stock; Senior To: Simon Common Stock, Simon Class B Common Stock, Simon Class C Common Stock, Any Class Or Series Ranking Junior To The Simon 8 3/8% Preferred Stock

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Prospectus Summary

Simon Property Group, Inc. is issuing its 8 3/8% Series A Cumulative Redeemable Preferred Stock (the '8 3/8% Preferred Stock') in connection with its merger with Chelsea Property Group, in exchange for Chelsea's existing 8 3/8% Series A Cumulative Redeemable Preferred Stock. Each share carries a $50.00 liquidation preference and pays a fixed annual dividend of 8.375% ($4.1875 per share) on a quarterly basis. The preferred stock is cumulative, meaning any missed dividends accrue and must be paid in full before Simon can resume distributions to common stockholders. The 8 3/8% Preferred Stock ranks senior to Simon's common stock (including Class B and Class C), on a parity with Simon's other outstanding preferred stock (including the 6% Convertible Preferred Stock also issued in this merger), and junior to any senior capital stock Simon may designate in the future. As a holding company issuer, holders are structurally subordinated to all debt and liabilities at the operating partnership (Simon Property Group, L.P.) level. There is no regulatory capital call provision, as Simon is a REIT rather than a bank. The redemption price (excluding accrued dividends) must be paid solely from proceeds of other capital stock sales, not from other sources. At the $50.00 liquidation preference, the 8 3/8% coupon yields 8.375% annually. Dividends are payable quarterly commencing from the issuance date; specific payment calendar dates are not detailed in this filing. Because Simon is a REIT, dividends will generally be characterized as ordinary income for U.S. tax purposes and will not qualify for the preferential 15%/20% qualified dividend income (QDI) rate or the corporate dividends-received deduction (DRD). The stock is not redeemable until October 15, 2027, and there is no explicit dividend stopper provision in the excerpt; however, cumulative arrears exceeding six quarterly periods trigger preferred holders' right to elect two members to Simon's board.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If dividends on the Simon 8 3/8% Preferred Stock are in arrears for six or more quarterly periods, holders gain the right to elect two directors; the prospectus does not explicitly detail a dividend stopper blocking payments on junior securities beyond the cumulative arrearage mechanism.

Other Preferreds from Simon Property Group Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 56 (Average)