Simon Property Group To Switch Back To Cash Dividend In 2010
04 Giugno 2009 - 5:13PM
Dow Jones News
Simon Property Group (SPG), the largest U.S. real estate
investment trust, said Thursday it plans to resume paying a cash
dividend in 2010.
The retail landlord earlier this year adopted a dividend policy
allowing it to pay 90% of its distribution in stock and 10% in cash
to preserve capital amid a continuing credit crunch and weakening
market fundamentals.
The company was part of a herd of REITs switching to such
stock/cash combo dividends this year that fueled declines in share
prices while remaining balance-sheet friendly.
"It's our desire to pay [a] cash dividend very soon...and not do
the combo of stock and cash we planned...in 2009," said Chief
Executive David Simon during a REIT conference at the Waldorf
Astoria in New York City, adding that 2010 would mark the
switch.
The announcement of the dividend change comes fresh off roughly
$1.6 billion in equity sales from Simon Property recently. The CEO
said the company doesn't plan to issue any more equity "at this
point."
The company also said it was well capitalized for acquisitions
and was looking at a few opportunities. But, there appeared to be
no imminent transactions.
"We're being very thoughtful and cautious," Simon said. He said
during the presentation that the company could add 50 to 100 basis
points to any investment they made.
-By A.D. Pruitt, Dow Jones Newswires, 201-938-2269,
angela.pruitt@dowjones.com