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Mall owner Simon Property profit disappoints as pandemic cuts shopping days

imageStock Markets53 minutes ago (Aug 10, 2020 06:50PM ET)

(C) Reuters. 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

(Reuters) – America’s largest mall operator Simon Property Group Inc (N:SPG) missed Wall Street estimates for quarterly 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 (NYSE:JWN), Brooks Brothers, Macy’s (NYSE:M), 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.

Online retailer Inc (O:AMZN) 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 51% of its contractual rent billed for April and May combined, about 69% for June and about 73% for July from its U.S. retail portfolio.

Total revenue for the second quarter ended June 30 fell about 24% to $1.06 billion.

Net income attributable to the company’s shareholders fell to $254.2 million, or 83 cents per share, from $495.3 million, or $1.60 per share, a year earlier.

Analysts were expecting the company to earn 98 cents per share, according to IBES data from Refinitiv.

(This story corrects to remove revenue comparison with analysts’ estimates in paragraphs 1 and 6. Changes headline to conform)

Mall owner Simon Property profit disappoints as pandemic cuts shopping days

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