North America Real Estate & Europe/Asia/Emerging RE - Earnings and Guidance
| Simon Property Group details stake in Liberty International |  |
November 06, 2009 5:49 PM ET
By Muhammad Haseeb
|  Related Companies | Related Documents |
Simon Property Group Inc. said in a Form 10-Q filed Nov. 5 that during the quarter ended June 30, it recognized a noncash charge of $140.5 million, or 42 cents per share, representing an other-than-temporary impairment in fair value less than the carrying value of its investment in Liberty International Plc. As of June 30 and Sept. 30, Simon Property owned 35.4 million shares of Liberty's stock, representing nearly 6% of Liberty's shares, at a weighted average cost per share of £5.74. Simon Property said its interest in Liberty is adjusted to its quoted market price, including a related foreign exchange component. As of June 30 and Sept. 30, Liberty's quoted market price was £3.97 per share and £4.79 per share, respectively. Simon Property said as a result of the significance and duration of the decline in the total share price at June 30, including currency revaluations, the decline in value was deemed an other-than-temporary impairment, which established a new cost basis of the company's investment in Liberty. Consequently, changes in available-for-sale securities and other in the consolidated statement of operations and comprehensive income include the reclassification of $140.5 million from accumulated other comprehensive income to earnings related to this noncash charge. Further, Simon Property said that before the quarter ended June 30, the changes in value of its Liberty investment were reflected in other comprehensive income. For the quarter ended Sept. 30, the company resumed marking its Liberty investment to market through other comprehensive income. The resulting mark-to-market adjustment for the quarterly period ended Sept. 30 was an increase in the value of Liberty of $37.7 million with a corresponding adjustment in other comprehensive income. | 
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