IBJNews

Simon CEO: Mall owner has ‘firepower’ for deals

Back to TopCommentsE-mailPrintBookmark and Share

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.

ADVERTISEMENT

  • 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?

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
ADVERTISEMENT