Simon Property Group sees revenue decline

After a tough year with the global COVID-19 pandemic shutting down retail stores, mall owner Simon Property Group Inc has taken a major hit. Reuters reported that Simon Property Group saw a 24 percent fall in quarterly revenue. The mall owner has been faced with delayed rent collection over retailers being unable to pay their rents with months of no brick-and-mortar revenue.

Total revenue fell to 1.13 billion dollars in the fourth quarter, down from 1.49 billion dollars a year earlier. Despite a tough 2020, as it was for most retailers unless your name is Amazon, Simon Property Group is expecting 2021 to be an improvement for retail growth. As lockdown restrictions are lifted and the vaccine rollout continues, companies are looking at opening new stores, bringing Simon Property Group potential tenants.

Florida, which has very limited COVID-19 restrictions, has been Simon Property Group’s litmus test for what could happen once restrictions are eased in other states, as traffic at their Florida stores has been promising. According to CNBC, Kohl’s Dick’s Sporting Goods, and Primark are all examples of retailers that have been in talks with Simon for potential new stores.

photo: via business.simon.com