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INDIANAPOLIS-Simon Property Group is anticipating new projects and redevelopments to exceed $600 million in 2005. In its first quarter earnings conference Friday, Simon confirmed six pipeline developments and hinted at more projects in the coming months.
Simon's upcoming projects include: Jersey Shore Premium Outlets, a 435,000-sf manufactures' outlet mall located on the northeast quadrant of Garden State Parkway and Route 66 in Tinton Falls, NJ; Round Rock, a Simon-owned development north of Austin, TX, which is being converted into an outlet center; the Domain, an Austin, TX mixed-use, open-air development featuring Neiman Marcus and Foley's; Domain Crossing and Arbor Walk, two community lifestyle centers in Austin's Golden Triangle; and Pier Park, a power center that will be located in Panama City.
Rick Machak, president of Simon's development services, said Simon has also received commitments from Foley's and Dillard's, as well as two additional fashion anchors, "for what will be a major retail development serving the affluent western half of the Houston Metroplex." Additionally, the firm has identified sites in Merrimack, NH and Limerick, PA for outlet centers.
Simon also has several projects under construction including: the 381,000-sf Seattle Premium Outlets in Tulalip, WA; Wolf Ranch, a 670,000-sf community center located north of Austin, TX in Georgetown; Firewheel Town Center, a 785,000-sf open-air regional shopping center located in Garland, TX; Rockaway Plaza, a 370,000-sf community center in Rockaway, NJ; and Coconut Point, a mainstreet regional shopping center that is part of a 482-acre master planned community located in Estero/Bonita Springs, FL.
In March, the company opened two developments: Toki Premium Outlets serving the greater Nagoya, Japan market consisting of 178,000 sf; and in Jacksonville, FL, Phase I of the 1.5-million-sf open-air St. Johns Town Center opened. Machak said the Florida retail venue opened with better than expected numbers.
"St. Johns opened with unprecedented success; retailers reported sales that exceeded the weekend goal by more than 100%," Machak told investors. "On Saturday of opening weekend, people waited for 45 minutes at the Cheesecake Factory just to get on a four-hour waiting list. Maggiano's Little Italy turned down walk-ins on Saturday and only took reservations due to high-traffic volumes. These results continued into April."
Also in April, Simon signed an agreement with Seoul-based Shinsegae Co. and Shinsegae International Co. to jointly develop Premium Outlet centers in South Korea. The companies are looking at building in the Seoul area.
Net income available to common stockholders for the quarter increased 18% to $57.1 million from $48.4 million in 2004. On a diluted per share basis the increase was 8.3% to $0.26 from $0.24 in the first quarter of 2004.
Diluted funds from operations of the Simon portfolio for the quarter increased 31.3% to $333.8 million from $254.3 million in 2004. On a per share basis, the increase was from $1.12 from $0.96 in the first quarter of 2004.
"The company had an exceptional first quarter," said David Simon, chief executive officer. "Our domestic and international business platforms performed well, resulting in 16.7% growth in diluted FFO per share."
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