INDIANAPOLIS-Simon Property Group reportedTuesday that its conversion to outlet malls is moving aheadquickly, with a number of retail propertiesset to open this year and next around the globe. David Simon,chairman and CEO, also discussed the mall giant’s financialimprovement during its second quarter conference call.

During the quarter, the company reports that funds fromoperations was $688.8 million, compared to $583 million in secondquarter 2011. The company also reported 5.1% growth in comparableproperty net operating income, tenant sales are up 9.9% to $554 persquare foot, and the company has raised the dividend from $1 pershare to $1.05 per share. “Our dividend is now 31% higher than itwas a year ago,” Simon said.

He said that commercial realestate construction continues on a number of new Premium Outlet Centers in the markets of Houston,Phoenix, Toronto, Tokyo and Busan, Korea, all set to open this yearor in 2013. The company also started construction July 11 at itsoutlet center in St. Louis, a property already 62% leased but goingup against a similar outlet center being built by Bloomfield Hills,MI-based Taubman Centers. Simon admitted that there has beencompetition to gain tenants in St. Louis, and that Taubman hasgrabbed a few tenants that Simon sought.