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Simon to spin off smaller properties into new public company

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Simon Property Group Inc. said Friday morning that it plans to spin off its strip centers and smaller enclosed malls into a new public company with a separate management team.

Existing Simon shareholders will receive shares in the as-yet-unnamed new business early next year. That company initially will own 54 strip centers and 44 malls. Simon overall owns more than 230 U.S. malls and strip centers, along with 66 outlet centers and 15 international retail developments.

“We believe we are creating a new company that has both a strong Simon heritage and all of the requisite tools to grow its business and succeed,” Simon Property Group CEO David Simon said in a prepared statement.

“At the same time, this transaction allows Simon to focus on our global portfolio of larger malls … and premium outlets while maintaining our considerable scale and conservative leverage profile.”

Occupancy of the targeted strip centers and malls is 94.2 percent and 90.4 percent, respectively, as of Sept. 30.  Each property has operating income below $10 million.

Simon did not disclose who will lead the new company. However, in Friday morning's news release, Simon said that its president and chief operating officer, Richard Sokolov, will be the company's chairman and that David Simon will be a member of the board of directors.

The news release said the spinoff will not diminish Simon's hefty quarterly dividend, which works out to $4.80 per year. The new company also will pay a dividend, expected to be at least 50 cents per year.

Simon will provide property-management services to the new company.

Simon is holding a conference call with analysts at 9 a.m. to discuss the spin-off plan.

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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