Because of its financial strength, with over $950 million in cash on hand--including shares of joint ventures--and $2.5 billion of available capacity on its corporate credit facility, Simon has been considered a prime candidate to acquire GGP.
"While our policy is generally not to comment on specific rumors like this, I will tell you that in the current environment I cannot envision a set of circumstances that would result in such a transaction," Simon said.
The size of such a transaction is the largest reason, he said, adding that regarding the capital markets "we are realists." Simon declined to elaborate further when asked if the company would look at individual center purchases or joint ventures.
"We've been really good steward of capital here," Simon said. "We will not do anything stupid. We are very focused on continuing to grow our company prudently."
An expansion at Orlando Premium Outlets will open on Nov. 6, Jersey Shore Premium Outlets in Tinton Falls, NJ, is scheduled to open Nov. 13. The company is reducing its capital expenditures next year, currently anticipated to be just under $400 million range. A fifth project in China, which was in the planning stage, is now on hold, and may be permanently sidelined as the company evaluates its four current centers there.
Funds from operations ("FFO") for the quarter increased 10.8% from last year to $463.9 million. Regional mall occupancy was 92.5%, vs. 92.7% for the same quarter last year. Premium Outlet Center occupancy was 98.8%, down slightly from 99.6% last year. Regional mall sales per sf was $493, up 0.4% from last year, while outlet center sales were $520 per sf, up 4.2% from last year.
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