Kokomo Tribune; Kokomo, Indiana

Breaking News

Breaking News

December 13, 2013

Simon Property plans strip mall business spinoff

Indianapolis — Markland Mall operator Simon Property Group Inc. plans to spin off to its shareholders a business that operates strip malls and smaller enclosed malls so it can focus on bigger malls and premium outlets.

The Indianapolis company's shares rose more than 3 percent in morning trading Friday.

Simon said the new, publicly traded real estate investment trust is expected to own or have an interest in 54 strip malls and 44 smaller enclosed malls. Its portfolio will total 53 million square feet in 23 states.

It estimates the new company will generate about $300 million in funds from operation, or FFO. FFO is the preferred profit measure of real estate investment trusts like Simon Property. It adds back charges that measure the costs and declining values of equipment and property back to net income.

Simon President and Chief Operating Officer Richard Sokolov will become chairman of the new company, and Simon Chairman and CEO David Simon will serve on its board of directors. Simon Property shareholders and limited partners get stakes in the new company.

Simon currently owns or has an interest in more than 325 retail real estate properties in North America and Asia.

Its shares rose $5.26, or 3.6 percent, to $153.63 in morning trading. The stock was down more than 6 percent so far this year, as of Thursday.

 

1
Text Only | Photo Reprints
Breaking News
Latest news
Featured Ads
Only on our website
AP Video
SKorea Ferry Toll Hits 156, Search Gets Tougher Video Shows Possible Syrian Gas Attack Cubs Superfans Celebrate Wrigley's 100th Raw: Cattle Truck Overturns in Texas Admirers Flock to Dole During Kansas Homecoming Raw: Erupting Volcanoes in Guatemala and Peru Alibaba IPO Could Be Largest Ever for Tech Firm FBI Joining Probe of Suburban NY 'Swatting' Call U.S. Paratroopers in Poland, Amid Ukraine Crisis US Reviews Clemency for Certain Inmates Raw: Violence Erupts in Rio Near Olympic Venue Raw: Deadly Bombing in Egypt Raw: What's Inside a Commercial Jet Wheel Well Raw: Obama Arrives in Japan for State Visit Raw: Anti-Obama Activists Fight Manila Police Motels Near Disney Fighting Homeless Problem Michigan Man Sees Thanks to 'bionic Eye' S.C. Man Apologizes for Naked Walk in Wal-Mart Chief Mate: Crew Told to Escape After Passengers
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries
Poll
Kelly Lafferty's video on Tom Miller