INDIANAPOLIS-The Simon Property Group, Inc. has released its FFO for the fourth quarter, raking in $485.2 million or $1.4 per diluted share. This was down year-over-year from $540.5 million. For 4Q09, Simon recorded impairment charges of $81.1 million.
Comparable sales per square foot were $433 in 4Q09 versus Q8’s $470 for their regional malls, while the premium outlet centers were closer, dropping only $9 year-over-year from $509 in 4Q09.
This quarter saw Simon agree to acquire the entirety of Prime Outlets Acquisition Co.’s outlet shopping center business and “certain affiliated entities” for approximately $2.33 billion, including “the assumiong of Prime Outlets’ existing indebtedness and preferred stock.” Prime Outlets will receive an equity consideration of approximately $700 million for the purchase consisting of 80% cash and 20% common partnership units in the subsidiary Simon Property Group, L.P. The Prime Outlet portfolio is made up of 22 outlet centers.
Meanwhile, Simon will terminate its joint venture with Ivanhoe Cambridge, by selling its 50% stake to Unibail-Rodamco for consideration of E715 million, subject to customary post-closing adjustments. The disposition of its stake in the seven shopping centers in France and Poland is anticipated to net $300 million, scheduled to close in the first half of 2010.
Simon and Ivanhoe Cambridge, also will venture with Unibail-Rodamco to finish the development of five retail projects in the current pipeline, of which Simon will own 25% interest.
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