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Friday, December 13, 2013

Simon Property to spin off strip center business, smaller malls, (NYSE: SPG)

Simon Property Group Inc, the largest owner of U.S. malls and outlet centers, said it would spin off its strip center business and smaller enclosed malls into a publicly traded REIT through a distribution to shareholders. The new company is expected to initially own or have an interest in 54 strip centers and 44 malls, the company said.Each of these malls generates annual net operating income of up to $10 million.The new company's funds from operations are expected to be about $300 million, or 80 cents per share, in the first year, Simon Property said.

Simon Property Group, Inc.( Simon Property), is a self-administered and self-managed real estate investment trust (REIT). Shares of SPG fell by 1.38% or $-2.07/share to $148.37. In the past year, the shares have traded as low as $142.47 and as high as $182.45. On average, 1305850 shares of SPG exchange hands on a given day and today's volume is recorded at 1568030.