![]() ![]() Should Simon Property Group bail out (invest in) more retail tenants? – RetailWire.Is Forever 21 a wise investment for its new mall landlord owners? – RetailWire.Will Amazon install distribution hubs in malls across America? – RetailWire.Simon Property Group Reports Second Quarter 2020 Results – Simon Property Group.Simon Property Group Q2 2020 Results (Earnings Call Transcript) – Seeking Alpha.The mall owner collected 51 percent of its contracted rents for April and May combined, 69 percent for June and roughly 73 percent for July. ![]() Comparable property net operating income was down 18.5 percent for the three months ending June 30. Simon’s net income for the second quarter was $254.2 million, down from $495.3 million the year before. Simon, the largest owner of malls in the U.S., has 63 Penney stores and 11 Sears on its properties. Simon declined to respond to a Wall Street Journal report this weekend that the mall operator was in discussions to lease current or former Penney and Sears stores to to set up local distribution hubs. They did a pretty damn good job, and kudos to them. “Those same people are probably the same people that told Amazon to stay just in the book business, okay? So, let’s just think a little bit - there’s just nothing out there that says you can’t make smart investments outside of your core businesses, which is what we do all the time. If we didn’t believe in the brand and we didn’t think we could make money, we wouldn’t do it …” “We’re doing it because we, for one reason only, we believe in the brand and we think we can make money. “I don’t buy into this … that we’re buying into these retailers to pay us rent,” said Mr. He also pointed out that merchandise is purchased at or below cost by Simon and its partner(s) when a bankrupt chain is acquired. Simon said his company’s investments in the three deals, should they prove successful, would be significantly lower than is usually speculated on by analysts and pundits in the press. Simon, ABG and Brookfield previously came together to jointly acquire the Aeropostale and Forever 21 chains. Those two, along with Brookfield Property Partners, another mall owner, have also made a bid to acquire the bankrupt J.C. Simon said that Sparc Group, a 50/50 joint venture with Authentic Brands Group (ABG), has submitted stalking horse bids for Brooks Brothers and Lucky Jeans. Speaking on his company’s second quarter earnings call yesterday, Mr. Simon Property Group CEO David Simon said his company is looking for opportunities to acquire once-successful retailers on the cheap as the effects of the novel coronavirus pandemic continue to force a record number of chains (AKA as tenants) to file for bankruptcy. ![]()
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