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Simon CEO: Mall owner has ‘firepower’ for deals

Bloomberg News
November 16, 2010
Keywords
Commercial Real Estate, David Simon, Mergers & Acquisitions, Public Companies, Real Estate & Retail, Simon Property Group
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Indianapolis-based Simon Property Group Inc., the U.S. shopping-mall owner that paid $2.3 billion this year for an outlet-center business, has plenty of capital for more purchases, CEO David Simon said.

“We still have a significant amount of firepower to do value-added transactions for the company,” Simon said in a Tuesday webcast of the REITWorld conference hosted by the National Association of Real Estate Investment Trusts in New York. “The one thing we will not do is do a deal just to do a deal.”

Simon Property, the largest owner of U.S. malls, bought Prime Outlets Acquisition Co. in August, expanding its outlet retail operation. The company had $1.3 billion of cash and $3 billion availability on a corporate credit line at Sept. 30.

Simon, 49, said the company will continue to use cash to reduce debt and has “a great growth trajectory, regardless of any external activities.” Earnings may reach a record next year, he said.

The company raised its profit forecast and increased its dividend this month.

Simon projects full-year funds from operations of $5.90 to $5.95 a share, compared with a previous forecast of no more than $5.87, the company said in a Nov. 1 earnings statement. The forecast excludes costs from debt repurchases in January and August. The landlord said it will pay a dividend of 80 cents a share in the fourth quarter, up from 60 cents.

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  • Taxes Will Rise As Revenue Given Away & Expenses Dumped On Taxpayers
    Not Everyone Is A VultureNovember 16, 2010 2:09 PM
    Allowing of politicans to socialize all losses and privatize all profits to politically connected firms is not a public private partnership, it is being a dormat.

    Think about it the next time they want to raise your taxes saying revenue is not meeting expenses for essential public services.
    Reply to CommentFlag Comment
  • Works Only One Way
    EstaNovember 16, 2010 1:12 PM
    Revenue producing assets such as parking meters need to be privitized. Money losing projects like stadiums, have to be owned publicly. Doesn't that make sense?
    Reply to CommentFlag Comment
  • Great News!
    Corporate CitizenshipNovember 16, 2010 11:24 AM
    How about using that excess capital to buy out the CIB and corporate partners in the Circle Center Mall and/or Conseco Fieldhouse?

    The city has no hope of ever repaying this long term debt considering the recent deal with both the Colts and Pacers which turned the CIB insolvent?
    Reply to CommentFlag Comment

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  1. The Fringe! Plus, the simple fact that there are so many local faves in such close proximity to each other.

  2. I remenber, watching the toll road, being built, through South Bend, when I was 10 years old. I believe, back then that it was estimated, that the toll road, would be paid for in 20 years and then it would be free. I am now 71, what happened? Since the power is in the people, by that, I mean that, we the people are in total control of everything. I, suggest that no one ever use the toll road again, let it go broke. We the people can control the price of everything, from groceries to gas, if we would just do it. If we don't pay the asking price, the sellers will lower the price and if we wait awhile, they will lower the price to what we accept as reasonable. I would like to know why a highway like interstate 94, is so well maintained, a much better highway, than the toll road, but has no tolls. I would also like to know why, a sitting governor, with a term limit, maximum of eight years, can lease, public property, for 75 years. Even though I have transponders in both of my trucks and will not be affected by the increase, I have been and will contine to avoid using the toll road. I make many trips from northern Indiana to Chicago, every year, and I prefer the better highway, I94!

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