INDIANAPOLIS-Outlet Malls are the best bet for current retail development, said Simon Property Group executives during a first quarter conference call this morning. David Simon, chairman and CEO, said that his mega mall REIT will concentrate on redeveloping current properties and building new outlet malls, not lifestyle centers, for the near future.

The company owns or has an interest in 337 retail properties in North America and Asia, and has plans for up to 14 outlet centers in Brazil. During the first quarter, Simon also acquired a 28.7% stake in Paris-based Klepierre with 271 shopping centers in 13 European countries.

In the first quarter, Simon recorded impressive results, as FFO increased by $648.7 million, from $570.6 million in Q1 2010. Also, total sales per square foot for the company’s total portfolio rose from $491 to $546 from a year ago, an 11.2% increase. Total occupancy is at 93.6% for the trust.