Mall owner Simon Property revenue disappoints as pandemic cuts shopping days
BusinessAmerica's largest mall operator Simon Property Group Inc missed Wall Street estimates for revenue and profit on Monday, hurt by unpaid rent from retailers due to the COVID-19 pandemic that also led to a loss of 10,500 shopping days.FILE PHOTO: Shoppers ascend and descend escalators at the King of Prussia Mall, owned by Simon Property Group, United State's largest retail shopping space, in King of Prussia, Pennsylvania, U.S., December 8, 2018. Picture taken December 8, 2018. REUTERS/Mark Makela
11 Aug 2020 05:00AMShare this contentBookmarkREUTERS: America's largest mall operator Simon Property Group Inc missed Wall Street estimates for revenue and profit on Monday, hurt by unpaid rent from retailers due to the COVID-19 pandemic that also led to a loss of 10,500 shopping days.
Simon, which operates about 200 U.S. properties and houses brands such as Gap, Nordstrom, Brooks Brothers, Macy's, and J.C. Penney, is struggling as some of its clients have either filed for bankruptcy or are fighting to stay afloat while the pandemic continues to ravage their businesses.
AdvertisementAdvertisementOnline retailer Amazon.com Inc and Simon have been in talks to convert some department stores in malls into distribution hubs, the Wall Street Journal reported earlier in the day.Indianapolis-based Simon's Chief Executive Officer David Simon said shoppers' response was encouraging as they begin to return to malls as they reopen after lockdowns.
The company said it has collected about 51per cent of its contractual rent billed for April and May combined, about 69per cent for June and about 73per cent for July from its U.S. retail portfolio.Total revenue for the second quarter ended June 30 fell about 24per cent to US$1.06 billion, compared with Wall Street estimates of US$1.14 billion, according to IBES data from Refinitiv.
AdvertisementAdvertisementNet income attributable to the company's shareholders fell to US$254.2 million, or 83 cents per share, from US$495.3 million, or US$1.60 per share, a year earlier.Analysts were expecting the company to earn 98 cents per share.
(Reporting by Nivedita Balu in Bengaluru; Editing by Devika Syamnath) Read more: CNA »
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