Seeking Alpha

Multiple expansion on tap for Simon after spin-off

  • "We expect the transaction will be a net positive from an NAV perspective,
    " say Janney's Mike Gorman and Tim Peron of Simon Property's (SPG +2%) plan to spin off its strip centers and smaller enclosed malls. With SPG trading at 15.4x FFO per share, the two see room for multiple expansion to the 16.3x high-quality mall peers are trading at. The duo reiterate their Buy rating.
  • Post-spin, U.S. malls will contribute 52.9% to NOI vs. 54% today, Premium outlets 28.1% vs. 25.4% today, and International 9.2% vs. 8.3% today. Strip centers will go to zero from 3.3% today.
  • Presentation slides from this morning's conference call
Comments (1)
  • greymatter3000
    , contributor
    Comments (29) | Send Message
    is this supposed to be a good thing? Are they putting all their crappy properties in a separate company to raise their average square foot numbers on their good properties? I guess that could be brilliant, or brilliantly deceptive. And what happens to SPG's share price after the spinoff? Are the current shareholders holding a bag right now?
    14 Dec 2013, 07:52 AM Reply Like
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