This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Toll Scorched in Arizona

In a warning about upcoming fourth-quarter earnings, Simon announced a $50 million charge to write down the entire value in the venture. Simon gave few details of why it was writing off the project, only saying the move coincided with the writedown of the joint venture's value by the general partner, Toll Brothers.

On its own earnings call last week, Toll Brothers mentioned that there were write-downs related to the project, but it didn't give specifics. The issue wasn't addressed in the company's earnings release, and was only discussed on the call when an analyst questioned the builder about the project.

But the fact that Simon Property wrote off its entire investment in the project is turning some heads. As the company now likely pulls its retail development, some wonder whether the project will ever get built.

"My understanding is the venture itself, the whole group, is not thinking it is going to work at this time," says RBC Capital Markets analyst Rich Moore, who covers Simon Property and other real estate investment trusts. "It is rare for a developer to write something down unless they feel pretty certain it is not going to work."

Moore says he doesn't know the precise details and hasn't spoken to Toll Brothers or Meritage.

The Simon Property source says the company's writeoff does not reflect the overall viability of the project.
2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
MTH $46.75 -0.57%
SPG $172.52 0.89%
TOL $37.79 0.32%
FB $86.17 0.43%
GOOG $524.10 0.49%

Markets

DOW 17,647.67 +51.32 0.29%
S&P 500 2,066.13 +8.49 0.41%
NASDAQ 4,986.0190 +27.5510 0.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs