Simon Property Group Inc.
) in collaboration with Mitsubishi Estate Co., Ltd., announced
the opening of its new Premium Outlet Center in Japan - Shisui
Premium Outlets. The mall opening is in line with the retail real
estate investment trust's (REIT) ongoing expansion activity to
spread in upscale locations across the globe.
Shisui Premium Outlets, which represents Simon Property's 9
Premium Outlet Center in Japan, is located in the Inba District
of Chiba. The property is well-connected to Tokyo through the
recently opened Shisui Interchange on the Higashikantou
Expressway. The shopping center is also easily accessible to
transportation channels of Japan.
The first phase of the Shisui Premium Outlets spans 234,000
square feet and is 100% leased to upscale domestic and
international tenants. The center boasts approximately 120
stores, which include some of the prominent American companies
The Gap, Inc.
Michael Kors Holdings Limited
We expect the above-mentioned property to boost Simon
property's top-line growth going forward, given the strategic
positioning of the Premium Outlets center in the highly
productive area of Japan. Moreover, Shisui Premium Outlets will
complement Simon Property's other properties in Japan that are
placed in some of the vibrant areas such as Osaka, Nagoya and
Notably, Simon Property has been active in capitalizing on
growth opportunities in top markets worldwide, with special focus
on enhancing its Premium Outlets portfolio. Currently, the
company has 77 Premium Outlet Centers, which include 63 in U.S
and 14 abroad. Simon Property also has some Premium Outlets
properties in its development pipeline, which are slated to open
by the end of 2013. These include Busan Premium Outlets, St.
Louis Premium Outlets and Toronto Premium Outlets.
Simon Property is scheduled to release its first-quarter 2013
results on Apr 26, before the opening bell. The Zacks Consensus
Estimate for the company's first-quarter FFO (funds from
operations) is currently pegged at $2.01 per share.
The Zacks earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) for Simon Property is -0.50% for the first quarter. This,
combined with a Zacks Rank #2 (Buy) indicates that the company
may not beat the Zacks Consensus Estimate in the first
Note: FFO, a widely used metric to gauge the performance of
REITs, is obtained after adding depreciation and amortization
and other non-cash expenses to net income.
COACH INC (COH): Free Stock Analysis Report
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MICHAEL KORS (KORS): Free Stock Analysis
SIMON PROPERTY (SPG): Free Stock Analysis
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