Following Simon Property Group Meetings, Goldman Sachs Comments on the Stock

Following meetings with Chief Financial Officer Steve Sterrett, Goldman Sachs is commenting on Simon Property Group Inc. SPG. “In recent news, the company announced a letter of intent to build the first Premium Outlet Center in Canada, a site that is roughly three miles away from Tanger's previously announced location (Halton Hills, Toronto metro area),” Goldman Sachs writes. “The company expects one project to move ahead and has partnered with Calloway REIT, which owns the land. SPG has historically achieved initial yields in the 12%-plus range on its new outlets and could begin construction by spring 2012 with the required pre-leasing. “Separately, SPG has listed six non-core malls for sale as part of its broader plan to reduce lower growth, non market dominant assets.” Simon Property Group closed Thursday at $115.69.