SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 62: The following table sets forth these key operating statistics for the combined U.S. Malls and Premium Outlets:
|    |    |                                                                            |
|---:|:---|:---------------------------------------------------------------------------|
|  0 | ●  | properties that are consolidated in our consolidated financial statements, |
|    |    |                                                                                        |
|---:|:---|:---------------------------------------------------------------------------------------|
|  0 | ●  | properties we account for under the equity method of accounting as joint ventures, and |
|    |    |                                                                        |
|---:|:---|:-----------------------------------------------------------------------|
|  0 | ●  | the foregoing two categories of properties on a total portfolio basis. |

|    |                                           |    |      |       |            |               |      |    |            |    |               |    |    |       |    |
|---:|:------------------------------------------|:---|:-----|:------|:-----------|:--------------|:-----|:---|:-----------|:---|:--------------|:---|:---|:------|:---|
|  0 | ​                                         | ​  | ​    | ​     | ​          | ​             | ​    | ​  | ​          | ​  | ​             | ​  | ​  | ​     | ​  |
|  1 | ​                                         | ​  | ​    | ​     | ​          | %/Basis Point | ​    | ​  | ​          | ​  | %/Basis Point | ​  | ​  | ​     | ​  |
|  2 | ​                                         |    | 2023 |       | Change (1) |               | 2022 |    | Change (1) |    | 2021          | ​  |    |       |    |
|  3 | U.S. Malls and Premium Outlets:           | ​  | ​    | ​     | ​          | ​             | ​    | ​  | ​          | ​  | ​             | ​  | ​  | ​     | ​  |
|  4 | Ending Occupancy                          | ​  | ​    | ​     | ​          | ​             | ​    | ​  | ​          | ​  | ​             | ​  | ​  | ​     | ​  |
|  5 | Consolidated                              | ​  | ​    | 95.7% | ​          | 80 bps        | ​    | ​  | 94.9%      | ​  | 140 bps       | ​  | ​  | 93.5% | ​  |
|  6 | Unconsolidated                            | ​  | ​    | 96.1% | ​          | 120 bps       | ​    | ​  | 94.9%      | ​  | 180 bps       | ​  | ​  | 93.1% | ​  |
|  7 | Total Portfolio                           | ​  | ​    | 95.8% | ​          | 90 bps        | ​    | ​  | 94.9%      | ​  | 150 bps       | ​  | ​  | 93.4% | ​  |
|  8 | Average Base Minimum Rent per Square Foot | ​  | ​    | ​     | ​          | ​             | ​    | ​  | ​          | ​  | ​             | ​  | ​  | ​     | ​  |
|  9 | Consolidated                              | ​  | $    | 55.47 | ​          | 2.8%          | ​    | $  | 53.95      | ​  | 2.6%          | ​  | $  | 52.59 | ​  |
| 10 | Unconsolidated                            | ​  | $    | 60.59 | ​          | 3.8%          | ​    | $  | 58.36      | ​  | 1.4%          | ​  | $  | 57.55 | ​  |
| 11 | Total Portfolio                           | ​  | $    | 56.82 | ​          | 3.1%          | ​    | $  | 55.13      | ​  | 2.3%          | ​  | $  | 53.91 | ​  |
| 12 | U.S. TRG:                                 | ​  | ​    | ​     | ​          | ​             | ​    | ​  | ​          | ​  | ​             | ​  | ​  | ​     | ​  |
| 13 | Ending Occupancy                          | ​  |      | 95.7% | ​          | 120 bps       | ​    |    | 94.5%      | ​  | 330 bps       | ​  |    | 91.2% | ​  |
| 14 | Average Base Minimum Rent per Square Foot | ​  | $    | 65.01 | ​          | 5.3%          | ​    | $  | 61.76      | ​  | 5.2%          | ​  | $  | 58.69 | ​  |
| 15 | The Mills:                                | ​  | ​    | ​     | ​          | ​             | ​    | ​  | ​          | ​  | ​             | ​  | ​  | ​     | ​  |
| 16 | Ending Occupancy                          | ​  |      | 97.8% | ​          | -40 bps       | ​    |    | 98.2%      | ​  | 60 bps        | ​  |    | 97.6% | ​  |
| 17 | Average Base Minimum Rent per Square Foot | ​  | $    | 36.38 | ​          | 4.3%          | ​    | $  | 34.89      | ​  | 3.2%          | ​  | $  | 33.80 | ​  |

|    |     |                                                                                                                                                        |
|---:|:----|:-------------------------------------------------------------------------------------------------------------------------------------------------------|
|  0 | (1) | Percentages may not recalculate due to rounding. Percentage and basis point changes are representative of the change from the comparable prior period. |

Ending Occupancy Levels and Average Base Minimum Rent per Square Foot.
 Ending occupancy is the percentage of gross leasable area, or GLA, which is leased as of the last day of the reporting period. We include all company owned space except for mall anchors, mall majors, mall freestanding and mall outlots in the calculation. Base minimum rent per square foot is the average base minimum rent charge in effect for the reporting period for all tenants that would qualify to be included in ending occupancy.

Current Leasing Activities

During the twelve months ended December 31, 2023, we signed 1,185 new leases and 1,841 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across our U.S. Malls and Premium Outlets portfolio, comprising approximately 10.9 million square feet, of which 8.3 million square feet related to consolidated properties. During 2022, we signed 1,262 new leases and 1,517 renewal leases with a fixed minimum rent, comprising approximately 9.1 million square feet, of which 7.0 million square feet related to consolidated properties. The average annual initial base minimum rent for new leases was $66.39 per square foot in 2023 and $55.41 per square foot in 2022 with an average tenant allowance on new leases of $64.31 per square foot and $53.01 per square foot, respectively.


Japan Data

The following are selected key operating statistics for our Premium Outlets in Japan. The information used to prepare these statistics has been supplied by the managing venture partner.

|    |                                           |    |              |       |               |         |              |    |               |    |              |    |    |       |
|---:|:------------------------------------------|:---|:-------------|:------|:--------------|:--------|:-------------|:---|:--------------|:---|:-------------|:---|:---|:------|
|  0 | ​                                         | ​  | ​            | ​     | ​             | ​       | ​            | ​  | ​             | ​  | ​            | ​  | ​  | ​     |
|  1 | ​                                         |    | December 31, |       | %/basis point |         | December 31, |    | %/basis point |    | December 31, |    |    |       |
|  2 | ​                                         | ​  | 2023         | ​     | Change        | ​       | 2022         | ​  | Change        | ​  | 2021         |    |    |       |
|  3 | Ending Occupancy                          | ​  | ​            | 99.7% | ​             | -10 bps | ​            | ​  | 99.8%         | ​  | 0 bps        | ​  | ​  | 99.8% |
|  4 | Average Base Minimum Rent per Square Foot | ​  | ¥            | 5,494 | ​             | -4.93%  | ​            | ¥  | 5,779         | ​  | 4.90%        | ​  | ¥  | 5,509 |

​

62



, VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 40: Overview - continued
Financings - continued

Interest Rate Swap and Cap Arrangements

We entered into the following interest rate swap and cap arrangements during the year ended December 31, 2023. See page 58, Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk - Derivatives and Hedging, in this Annual Report on Form 10-K for further information on our hedging instruments.

|    |                                                          |                           |         |                     |       |                 |       |                      |           |       |
|---:|:---------------------------------------------------------|:--------------------------|:--------|:--------------------|:------|:----------------|:------|:---------------------|:----------|:------|
|  1 | (Amounts in thousands)                                   | Notional Amount(at share) |         | All-In Swapped Rate |       | Expiration Date |       | Variable Rate Spread |           |       |
|  2 | Interest rate swaps:                                     |                           |         |                     |       |                 |       |                      |           |       |
|  3 | 555 California Street (effective 05/24)                  | $                         | 840,000 |                     |       | 6.03%           |       | 05/26                |           | S+205 |
|  4 | PENN 11 (effective 03/24)(1)                             | 250,000                   |         |                     | 6.34% |                 | 10/25 |                      | S+206     |       |
|  5 | Unsecured term loan(2)                                   | 150,000                   |         |                     | 5.12% |                 | 07/25 |                      | S+129     |       |
|  7 |                                                          |                           |         | Index Strike Rate   |       |                 |       |                      |           |       |
|  8 | Interest rate caps:                                      |                           |         |                     |       |                 |       |                      |           |       |
|  9 | 1290 Avenue of the Americas (70.0% interest)(3)          | $                         | 665,000 |                     |       | 1.00%           |       | 11/25                |           | S+162 |
| 10 | One Park Avenue (effective 3/24)                         | 525,000                   |         |                     | 3.89% |                 | 03/25 |                      | S+122     |       |
| 11 | 640 Fifth Avenue (52.0% interest)                        | 259,925                   |         |                     | 4.00% |                 | 05/24 |                      | S+111     |       |
| 12 | 731 Lexington Avenue office condominium (32.4% interest) | 162,000                   |         |                     | 6.00% |                 | 06/24 |                      | Prime + 0 |       |
| 13 | 150 West 34th Street                                     | 75,000                    |         |                     | 5.00% |                 | 02/26 |                      | S+215     |       |
| 14 | 512 West 22nd Street (55.0% interest)                    | 71,088                    |         |                     | 4.50% |                 | 06/25 |                      | S+200     |       |

________________________
(1)The $500,000 mortgage loan is currently subject to a $500,000 interest rate swap with an all-in swapped rate of 2.22% and expires in March 2024. In January 2024, we entered into a forward swap arrangement for the remaining $250,000 balance of the $500,000 PENN 11 mortgage loan which is effective upon the March 2024 expiration of the current in-place swap. Together with the forward swap above, the loan will bear interest at an all-in swapped rate of 6.28% effective March 2024 through October 2025.
(2)In addition to the swap disclosed above, the unsecured term loan, which matures in December 2027, is subject to various interest rate swap arrangements that were entered into in prior periods. 

(3)In connection with the arrangement, we made a $63,100 up-front payment, of which $18,930 is attributable to noncontrolling interests. See Note 9 - Debt in Part II, Item 8 of this Annual Report on Form 10-K for details.


Leasing Activity For the Year Ended December 31, 2023

The leasing activity and related statistics below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period.
•2,133,000 square feet of New York Office space (1,661,000 square feet at share) at an initial rent of $98.66 per square foot and a weighted average lease term of 10.0 years. The changes in the GAAP and cash mark-to-market rent on the 1,476,000 square feet of second generation space were positive 6.2% and negative 2.0%, respectively. Tenant improvements and leasing commissions were $7.44 per square foot per annum, or 7.5% of initial rent.
•299,000 square feet of New York Retail space (239,000 square feet at share) at an initial rent of $118.47 per square foot and a weighted average lease term of 6.5 years. The changes in the GAAP and cash mark-to-market rent on the 131,000 square feet of second generation space were positive 20.7% and positive 18.8%, respectively. Tenant improvements and leasing commissions were $21.90 per square foot per annum, or 18.5% of initial rent.
•337,000 square feet at THE MART (332,000 square feet at share) at an initial rent of $52.97 per square foot and a weighted average lease term of 7.2 years. The changes in the GAAP and cash mark-to-market rent on the 244,000 square feet of second generation space were negative 3.3% and negative 7.8%, respectively. Tenant improvements and leasing commissions were $11.44 per square foot per annum, or 21.6% of initial rent.
•10,000 square feet at 555 California Street (7,000 square feet at share) at an initial rent of $134.70 per square foot and a weighted average lease term of 5.9 years. The changes in the GAAP and cash mark-to-market rent on the 4,000 square feet of second generation space were positive 12.8% and positive 2.4%, respectively. Tenant improvements and leasing commissions were $22.92 per square foot per annum, or 17.0% of initial rent.
40




, VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 41: Overview - continued

Square footage (in service) and Occupancy as of December 31, 2023
|    |                                                                                   |                     |     |                          |          |        |             |      |    |     |
|---:|:----------------------------------------------------------------------------------|:--------------------|:----|:-------------------------|:---------|:-------|:------------|:-----|:---|:----|
|  1 | (Square feet in thousands)                                                        |                     |     | Square Feet (in service) |          |        |             |      |    |     |
|  2 |                                                                                   | Number ofproperties |     | TotalPortfolio           | OurShare |        | Occupancy % |      |    |     |
|  3 | New York:                                                                         |                     |     |                          |          |        |             |      |    |     |
|  4 | Office                                                                            | 30                  | (1) | 18,699                   |          | 16,001 |             | 90.7 | %  |     |
|  5 | Retail (includes retail properties that are in the base of our office properties) | 50                  | (1) | 2,123                    |          | 1,684  |             | 74.9 | %  |     |
|  6 | Residential - 1,974 units(2)                                                      | 5                   | (1) | 1,479                    |          | 745    |             | 96.8 | %  | (2) |
|  7 | Alexander's                                                                       | 5                   |     | 2,331                    |          | 755    |             | 92.6 | %  | (2) |
|  9 |                                                                                   |                     |     | 24,632                   |          | 19,185 |             | 89.4 | %  |     |
| 11 | Other:                                                                            |                     |     |                          |          |        |             |      |    |     |
| 12 | THE MART                                                                          | 3                   |     | 3,688                    |          | 3,679  |             | 79.2 | %  |     |
| 13 | 555 California Street                                                             | 3                   |     | 1,819                    |          | 1,274  |             | 94.5 | %  |     |
| 14 | Other                                                                             | 11                  |     | 2,537                    |          | 1,202  |             | 91.9 | %  |     |
| 15 |                                                                                   |                     |     | 8,044                    |          | 6,155  |             |      |    |     |
| 17 | Total square feet as of December 31, 2023                                         |                     |     | 32,676                   |          | 25,340 |             |      |    |     |
________________________________________
See notes below.

Square footage (in service) and Occupancy as of December 31, 2022

|    |                                                                                   |                     |     |                          |        |          |        |             |      |      |    |     |
|---:|:----------------------------------------------------------------------------------|:--------------------|:----|:-------------------------|:-------|:---------|:-------|:------------|:-----|:-----|:---|:----|
|  1 | (Square feet in thousands)                                                        |                     |     | Square Feet (in service) |        |          |        |             |      |      |    |     |
|  2 |                                                                                   | Number ofproperties |     | TotalPortfolio           |        | OurShare |        | Occupancy % |      |      |    |     |
|  3 | New York:                                                                         |                     |     |                          |        |          |        |             |      |      |    |     |
|  4 | Office                                                                            | 30                  | (1) |                          | 18,724 |          |        | 16,028      |      | 91.9 | %  |     |
|  5 | Retail (includes retail properties that are in the base of our office properties) | 56                  | (1) |                          | 2,289  |          |        | 1,851       |      | 74.4 | %  |     |
|  6 | Residential - 1,976 units(2)                                                      | 6                   | (1) |                          | 1,499  |          |        | 766         |      | 96.7 | %  | (2) |
|  7 | Alexander's                                                                       | 6                   |     |                          | 2,241  |          |        | 726         |      | 96.4 | %  | (2) |
|  8 |                                                                                   |                     |     | 24,753                   |        |          | 19,371 |             | 90.4 | %    |    |     |
| 10 | Other:                                                                            |                     |     |                          |        |          |        |             |      |      |    |     |
| 11 | THE MART                                                                          | 4                   |     | 3,635                    |        |          | 3,626  |             | 81.6 | %    |    |     |
| 12 | 555 California Street                                                             | 3                   |     | 1,819                    |        |          | 1,273  |             | 94.7 | %    |    |     |
| 13 | Other                                                                             | 11                  |     | 2,532                    |        |          | 1,197  |             | 92.6 | %    |    |     |
| 14 |                                                                                   |                     |     | 7,986                    |        |          | 6,096  |             |      |      |    |     |
| 16 | Total square feet as of December 31, 2022                                         |                     |     | 32,739                   |        |          | 25,467 |             |      |      |    |     |
________________________________________

(1)Reflects the Office, Retail and Residential space within our 65 and 71 total New York properties as of December 31, 2023 and 2022, respectively.

(2)The Alexander Apartment Tower (312 units) is reflected in Residential unit count and occupancy.
41




, VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 42: 
Critical Accounting Estimates

In preparing the consolidated financial statements we have made estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Accounting estimates are deemed critical if they involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Below is a summary of the critical accounting estimates used in the preparation of our consolidated financial statements. A discussion of our accounting policies is included in Note 2 - Basis of Presentation and Significant Accounting Policies to our consolidated financial statements in this Annual Report on Form 10-K.

Acquisitions of Real Estate

Upon the acquisition of real estate, we assess whether the transaction should be accounted for as an asset acquisition or as a business combination. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. Our acquisitions of real estate generally will not meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related identified intangible assets).
We assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above and below-market leases, acquired in-place leases and tenant relationships) and acquired liabilities and we allocate the purchase price on a relative fair value basis. We assess fair value based on estimated cash flow projections based on a number of factors such as historical operating results, known trends, and market/economic conditions and make key assumptions regarding the discount and capitalization rates used in our analyses. The use of different assumptions to value the acquired properties and allocate value between land and building could affect the revenues recognized over the terms of the leases at our properties and the expenses recognized over the property's estimated remaining useful life on our consolidated statements of income.

Impairment Analyses for Investments in Real Estate and Unconsolidated Partially Owned Entities

Our investments in consolidated properties, including any related right-of-use assets and intangible assets, and unconsolidated partially owned entities are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For our unconsolidated partially owned entities, we consider various qualitative factors to determine if a decrease in the value of our investment is other-than-temporary during our intended holding period. Assessing impairment can be complex and involves a high degree of subjectivity in determining if impairment indicators are present and in estimating the future undiscounted cash flows or the fair value of an asset. In particular, these estimates are sensitive to significant assumptions, including the estimation of future rental revenues, operating expenses, capital expenditures, discount rates and capitalization rates and our intent and ability to hold the related asset, all of which could be affected by our expectations about future market or economic conditions. These estimates can have a significant impact on the undiscounted cash flows or estimated fair value of an asset and could thereby affect the value of our real estate investments on our consolidated balance sheets as well as any potential impairment losses recognized on our consolidated statements of income.
During the year ended December 31, 2023, we recognized an aggregate $95,465,000 of impairment losses directly attributable to decreases in the value of depreciable real estate held by certain wholly owned and partially owned entities, of which $22,176,000 was attributable to noncontrolling interests. See Note 5 - Investments in Partially Owned Entities and Note 15 - Fair Value Measurements to our consolidated financial statements in this Annual Report on Form 10-K for further details.
Impairment analyses are based on information available at the time the analyses are prepared. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future rental revenues, operating expenses, capital expenditures, discount rates and capitalization rates which could differ materially from actual results.

Collectability Assessments for Revenue Recognition

We evaluate on an individual lease basis whether it is probable that we will collect substantially all amounts due from our tenants and recognize changes in the collectability assessment of our operating leases as adjustments to rental revenue. Management exercises judgment in assessing collectability of tenant receivables and considers payment history, current credit status, publicly available information about the financial condition of the tenant, and other factors. Our assessment of the collectability of tenant receivables can have a significant impact on the rental revenue recognized in our consolidated statements of income.

Recent Accounting Pronouncements


See Note 2 – Basis of Presentation and Significant Accounting Policies to our consolidated financial statements in this Annual Report on Form 10-K for a discussion concerning recent accounting pronouncements.

42






Question: Compare the tenant improvement and leasing commission costs for Simon Property Group and Vornado Realty Trust for the year 2023.
Answer: For the year 2023, Simon Property Group's average tenant allowance on new leases was $64.31 per square foot, and the average annual initial base minimum rent for new leases was $66.39 per square foot.
Vornado Realty Trust's tenant improvements and leasing commissions for New York Office space were $7.44 per square foot per annum, for New York Retail space were $21.90 per square foot per annum, for THE MART were $11.44 per square foot per annum, and for 555 California Street were $22.92 per square foot per annum.
Vornado Realty Trust's tenant improvement and leasing commission costs vary significantly across different segments, while Simon Property Group's costs are more uniform across its portfolio.