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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowSimon Property Group Inc. plans to hoard cash this year to purchase
property that may come on the market, said David Simon, CEO of the
Indianapolis-based mall owner.
Simon made the comments this morning at a Citigroup 2009 Global
Property CEO Conference in Naples, Fla., Bloomberg News reported.
“We are going to hoard and warehouse capital, I think, so ultimately we
can continue to be a leader in this industry, and ultimately take
advantage of external opportunities once we see opportunities in the
marketplace,” Simon said, according to Bloomberg.
Simon in January said it would start paying 90 percent of its quarterly
dividend in stock to preserve cash. The company will have about $1.5
billion in cash flow this year and more in 2010 as expenses decline,
Simon said.
Acquisition targets could be both in the United States and abroad.
“We don’t rule anything out,” Simon told the conference. “As long as it’s quality retail real estate, that’s our focus.”
Simon shares fell 81 cents, to $29.15, in late-morning trading, and have dropped 65 percent in the past year.
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