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Simon CEO: Mall owner has ‘firepower’ for deals

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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
    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.
  • Works Only One Way
    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?
  • Great News!
    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?

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  1. why oh why does this state continue to elect these people....do you wonder how much was graft out of the 3.8 billion?

  2. i too think this is a great idea. I think the vision and need is there as well. But also agree with Wendy that there may be better location in our city to fulfill this vision and help grow the sports of hockey and figure skating in Indy. Also to help further develop other parts of the city that seem often forgotten. Any of the other 6 townships out side of the three northernmost could benefit greatly from a facility and a vision like this. For a vision that sounds philanthropic, the location is appears more about the money. Would really like to see it elsewhere, but still wish the development the best of luck, as we can always use more ice in the city. As for the Ice growth when they return, if schedules can be coordinated with the Fuel, what could be better than to have high level hockey available to go see every weekend of the season? Good luck with the development and the return of the Ice.

  3. How many parking spaces do they have at Ironworks? Will residents have reserved spaces or will they have to troll for a space among the people that are there at Ruth Chris & Sangiovese?

  4. You do not get speeding ticket first time you speed and this is not first time Mr.Page has speed. One act should not define a man and this one act won't. He got off with a slap on the wrist. I agree with judge no person was injured by his actions. The state was robbed of money by paying too much rent for a building and that money could have been used for social services. The Page family maybe "generous" with their money but for most part all of it is dirty money that he obtained for sources that are not on the upright. Page is the kind of lawyer that gives lawyers a bad name. He paid off this judge like he has many other tine and walked away. Does he still have his license. I believe so. Hire him to get you confiscated drug money back. He will. It will cost you.

  5. I remain amazed at the level of expertise of the average Internet Television Executive. Obviously they have all the answers and know the business inside and out.

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