“Why do I bring this up constantly? Well, because hopefully this will put an end to the so-called negative mall narrative, as you can’t pay those dividends without a strong underlying business.”įor all its global investments in real estate, SPG is also a retailer, with direct and indirect stakes in dozens of brands ranging from JCPenney to Reebok to Nautica, Eddie Bauer, Aeropostale and more via its SPARC Group portfolio held with Authentic Brands Group.įor Simon, these so-called Other Platform Investments or OPIs are also performing well, as the company’s efforts to revive distressed brands that it acquires at a discount is proving to be a lucrative and growing side business. “However, brick-and-mortar retail is strong, and eCommerce is flatlining,” he said. “Many have tried to kill off physical retail real estate and in particular enclosed malls,” Simon said, pointing to the closed store COVID-era in which naysayers argued physical retail was gone forever. Not only did SPG’s occupancy and base rent levels both increase 1.7% for the quarter, but the company also raised its earnings forecast and dividend for the quarter to come.Īdditionally, Simon went out of his way to stress the point that his company had paid out $39 billion in dividends over the past 30 years, through numerous up and down economic cycles, and had emerged as a stronger, more astute and better operator as a result. Unlike many of its large cap multinational peers, especially those with ties to consumers and retail, Simon Property showed unusual strength and confidence for the three months ending Sept. Where are seeing the most pressure right now is in eCommerce.” “We have yet to see any pullback in opening new stores or renewals,” Simon said. “Brick and mortar is where the action’s at,” SPG Chair and CEO David Simon said on the company’s third-quarter earnings call, in which the Indianapolis-based retail landlord expressed concerns about the macroeconomic climate but said, contrary to oft-repeated eulogies, malls are far from dead. 1) saying that Simon Property Group’s core business is strong and seeing no slowdown in demand for physical space. In his inimitable style, the billionaire CEO of the nation’s largest mall owner had a blunt message for investors Tuesday (Nov.
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