IBJNews

Simon to spin off smaller properties into new public company

Back to TopCommentsE-mailPrintBookmark and Share

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.

ADVERTISEMENT

  • possible run for mayor
    i am not satisfied with the direction the city of indpls ,leadership.if i can gain the trust of citizens if indpls .i believe that alot of issues we face today,can be changed.the crime rate,homicides in this city are too high,to many abandon homes,alot of other uses can be added.my platform would be ,make changes to improve the serious crimes committed daily.seniors and others are hostages in their own homes,afraid to go out at night.if i can get another 3,000 to 5,000 supporters i will certainly give it serious consideration,to be fair with all citizens and most of all be availability,listen to the public,not hold closed doors meetings and give our city assets away,if you have no assets,what equity do we have.i would not run for a 2nd term,if i cannot make huge changes to crime,taxes and alot of serious issues we now have in this city,i am asking for your support to help all of the changes needed..

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:
 
Subscribe to IBJ
  1. Ron Spencer and the entire staff of Theater on the Square embraced IndyFringe when it came to Mass Ave in 2005. TOTS was not only a venue but Ron and his friends created, presented and appeared in shows which embraced the 'spirit of the fringe'. He's weathered all the storms and kept smiling ... bon voyage and thank you.

  2. Not sure how many sushi restaurants are enough, but there are three that I know of in various parts of downtown proper and all are pretty good.

  3. First off, it's "moron," not "moran." 2nd, YOU don't get to vote on someone else's rights and freedoms that are guaranteed by the US Constitution. That's why this is not a state's rights issue...putting something like this to vote by, well, people like you who are quite clearly intellectually challenged isn't necessary since the 14th amendment has already decided the issue. Which is why Indiana's effort is a wasted one and a waste of money...and will be overturned just like this has in every other state.

  4. Rick, how does granting theright to marry to people choosing to marry same-sex partners harm the lives of those who choose not to? I cannot for the life of me see any harm to people who choose not to marry someone of the same sex. We understand your choice to take the parts of the bible literally in your life. That is fine but why force your religious beliefs on others? I'm hoping the judges do the right thing and declare the ban unconstitutional so all citizens of Wisconsin and Indiana have the same marriage rights and that those who chose someone of the same sex do not have less rights than others.

  5. No one is complaining about these jobs coming to Indianapolis. We are complaining about the need to subsidize these low wage jobs. Why do you never hear a peep from republicans and tea partiers about this type of welfare? We should only be subsidizing high wage, high skilled jobs.

ADVERTISEMENT