The U.S. Environmental Protection Agency (EPA) has honored mall REIT Simon Property Group Inc. (NYSE: SPG) for the company's initiatives to reduce energy use and greenhouse gas emissions.

The EPA named Simon a 2008 ENERGY STAR Partner of the Year, an award bestowed upon companies who excel at promoting energy efficiency in operations and incorporating effective energy management into their overall strategy. Simon was chosen from more than 9,000 organizations nationwide that participate in the ENERGY STAR program.

"Effective energy management is a key sustainability strategy and a core part of our operations and corporate culture," said David Simon, chairman and CEO of Simon Property Group.

"We are honored that such a prestigious agency as the U.S. EPA would identify Simon as an industry leader in managing energy use and as a model for other businesses to emulate. We strongly believe that our sustainability initiatives are good for the bottom line in addition to their positive environmental impact, and the recognition is icing on the cake," said George Caraghiaur, Simon's vice president of energy services.

Between 2003 and 2006, Simon cut its operational energy use by nearly 10 percent, which translates into approximately $11 million in operating cost savings. The decrease also represents 102 million kilowatt-hours of energy use and almost 68,000 tons of annual carbon emissions.

"Simon Property Group's leadership in managing its energy use is a model for other businesses that are looking for ways to protect the environment," said Robert J. Meyers, principal deputy assistant administrator for EPA's Office of Air & Radiation. "Energy management is a critical element in our efforts on climate change because commercial and industrial facilities account for half of all energy consumption in the U.S. and are responsible for nearly half of U.S. greenhouse gas emissions."

The EPA honor is the latest acknowledgement for Simon's eco-friendly efforts. Simon and Legacy Hotels REIT (TSE: LGY.UN) shared the Gold Award honors in NAREIT's 2007 Leader in the Light awards, which are presented to REITs that implement superior energy use practices.

Admiration Abounds for REITs Several REITs were named in March to Fortune magazine's annual list of "America's Most Admired Companies" for 2008. Industrial REIT ProLogis (NYSE: PLD) topped the magazine's rankings of real estate companies for the second year running. Host Hotels & Resorts Inc. (NYSE: HST), Simon Property Group (NYSE: SPG) and Vornado Realty Trust (NYSE: VNO) also made the list. Plum Creek Timber Company (NYSE PCL) appeared in the rankings as well. Fortune ranked the Seattle-based timber REIT among the most admired forest and paper products companies.