Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Michael Mueller of J.P. Morgan.
Michael Mueller - J.P. Morgan
Was there any magic behind the cash component of the dividend going up a few cents?
David Simon
Well look, it is our desire to get as much cash dividend as we pay comfortable paying. I think we will continue this strategy for ?09, but we’re really looking to as soon as we get more and more clarity in the capital markets and that is becoming a little bit clearer, that we are optimistic that we will reinstate the full cash dividend. I just think it’s hopefully a signal to the market that we’re getting more and more confidence.
Michael Mueller - J.P. Morgan
Okay, not knowing anything else, should we look at, I am assuming the $0.60 probably wouldn’t be a run rate into 2010 or should we think as $2.70 as being an annual and just think of the dividend on an annual basis at this point?
David Simon
I would think that it’s, obviously 2010 is awhile away, but our early projections on our taxable income for 2010 are anywhere between $2.70 and $3.00 per share. Again, there is a lot of variability to that, but it would be our intention to obviously pay our taxable income and to pay the appropriate amount in cash given the current market conditions.
Michael Mueller - J.P. Morgan
Is the Mills occupancy decline, I know you mentioned the boxes who were the culprits there. Was all of that expected and did anything else come out of that that wasn’t expected? Then can you comment on the demand, the activity that you’re seeing in terms of leasing some of those boxes plus in the Community Center portfolio?
David Simon
I will turn it over to Rick. I mean, the Mills decrease was entirely towards the boxes. The demand there continues to be decent. There are more and more tenants. Like, I happened to be there last week and Potomac Mills, the last call of Neiman Marcus were just about to open an Orange Neiman Marcus as well. So, the demand is good, but as you know we have had lots of boxes in those properties. It will take some time, but the in-line tenancy really didn’t have much variability. It is all associated with the boxes.
Rick Sokolov
And the only other thing, we have another Neiman Marcus last call opening at Gurnee and we also have a number of H&Ms opening in these boxes. The other thing that’s going on is, as David pointed out because of the stable sales performance there we are seeing an increasing migration to the Mills platform of not only outlet tenants that we are cross-fertilizing from Chelsea, but also our full price mall tenants that we’ve started to open in the Mills. So, our demand for small shop space in the Mills is maintaining relatively stable.
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