Simon’s Balance Sheet Takes Big Hit in Q3 — But Mall Giant Signals Optimism About Stronger Shopper Traffic and Retailer Sales

Earnings and sales at Simon Property Group fell short of Wall Street’s expectations, sending the mall behemoth’s stock down in Monday after-hours trading. For the three months ended Sept. 30, the Indianapolis-based retail real estate owner posted net income of $145.9 million, or earnings of 48 cents per diluted share, compared with the prior year’s $544.3 million, or $1.77 per diluted share. It saw revenues of $1.06 billion, versus the previous year’s $1.42 billion. Analysts had forecasted earnings per share of 90 cents and sales of $1.08 billion. At 5 p.m. ET, shares for Simon were down more than 6% to $74.50. The company also announced that its portfolio net operating income for the period declined 22.4% — attributed in part to reduced revenues from agreed-upon rent abatements with some of its retail tenants and lower sales-based rents, which were partially offset by cost-reduction initiatives. “Despite COVID-19, we are encouraged by the increases we are seeing in shopper traffic, retailer sales and tenant rent collections across our portfolio,” chairman, president and CEO David Simon said in a statement. “We continue to improve our company through innovative investment opportunities, which, when combined with our A-rated balance sheet, sets us apart and allows us to redefine the

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