Simon Property Group, Inc.
) is on track with its planned spin-off. After disclosing the
appointment of the Chief Executive Officer (CEO), Mark Ordan last
month for Washington Prime Group, Inc. - the unit that it decided
to spin-off - the company announced major managerial appointments
and 4 independent directors for Washington Prime Group's board.
Simon Property stated that once the spin-off is accomplished,
Myles Minton will join as the Chief Operating Officer, Robert P.
Demchak as the General Counsel and Corporate Secretary and
Michael J. Gaffney as Senior Vice President, Head of Capital
Markets of Washington Prime Group. These individuals have been
part of Simon Property for some years and held important
In addition, the company announced 4 independent directors for
Washington Prime Group. Notably, as disclosed earlier, Richard S.
Sokolov, President and Chief Operating Officer of Simon Property
Group will serve as the Chairman on the board.
As a matter of fact, Washington Prime Group, Inc. will operate as
an independent, publicly traded real estate investment trust
(REIT) and include the entire strip center business and smaller
enclosed malls of Simon Property. It will initially own or have
stake in 98 retail real estate properties - strip centers and
malls, aggregating 53 million square feet in 23 states.
We believe this move is a step closer to the completion of the
planned spin-off. The move would help this retail real estate
investment trust (REIT) to increase utilization of resources for
expanding its global portfolio of larger malls, mills and premium
outlets. With the economy showing signs of recovery, spending of
the richer consumers is improving and the company seems to
leverage on this trend.
Simon Property currently carries a Zacks Rank #2 (Buy). Investors
interested in the retail REIT industry may also consider stocks
Federal Realty Investment Trust
General Growth Properties, Inc.
National Retail Properties, Inc.
). All these stocks carry the same rank as Simon Property.
FED RLTY INV (FRT): Free Stock Analysis
GENL GRWTH PPTY (GGP): Free Stock Analysis
NATL RETAIL PPT (NNN): Free Stock Analysis
SIMON PROPERTY (SPG): Free Stock Analysis
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