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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowTroubles in the residential mortgage market have ensnared local mall giant Simon Property Group Inc.
Simon said today it plans a fourth-quarter write-off of $26 million, the entire value of its equity investment in a master-planned community proposed for a suburb of Phoenix. The loss is expected to reduce the company’s diluted net income by 11 cents per share.
Simon’s joint-venture partner on the Phoenix project, luxury homebuilder Toll Brothers Inc., announced its own impairment charge for the project yesterday. The Horsham, Penn.-based company reported its first quarterly loss in 21 years.
The partners, along with a Scottsdale, Ariz., home builder, Meritage Homes Corp., acquired 5,485 acres from automaker Daimler Chrysler Corp. in early 2006 for $312 million. The property had been a vehicle endurance test site.
Toll Brothers was the managing member of the group.
Simon shares are down 38 cents this morning, to $99.26.
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