Simon Property Group, Inc.
) opened its first Premium Outlet Centre in Toronto, Canada. The
move is in consistence with this retail real estate investment
trust's (REIT) strategy of expanding its Premium Outlets
portfolio in upscale locations across the globe.
The new outlet shopping centre - Toronto Premium Outlets - is
opened in a 50/50 partnership with Calloway Real Estate
Investment Trust, which is one of the largest REITs of Canada.
This outlet is located in the Town of Halton Hills and serves the
Greater Toronto area.
The first phase of this property, spanning 358,000 square
feet, boasts 90 outlet stores. This comprises industry-leading
brands, of which some are opening their debut outlet stores in
Canada such as
Columbia Sportswear Co.
), Polo Ralph Lauren of
Ralph Lauren Corp.
) and Ted Baker London.
We expect the above-mentioned property to enhance Simon
Property's top-line growth prospects going forward, given the
strategic positioning of the Premium Outlets center in one of
Canada's highly productive areas.
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 79 Premium Outlet Centers, which include 64 in the
U.S and 15 abroad.
On Jul 29, 2013, Simon Property reported second-quarter 2013
funds from operations (FFO) per share of $2.11, beating the Zacks
Consensus Estimate by 4 cents and the year-ago quarter figure by
22 cents. The 11.6% year-over-year rise was primarily driven by
increases in overage revenues and occupancy. Moreover, the
company's strong fundamentals prompted management to raise its
FFO growth outlook for the second time in the year.
Consequently, Simon Property currently carries a Zacks Rank #2
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.
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