Simon Property Group’s revenue tanks 24% due to COVID-19

Simon Property Group (NYSE: SPG) published its quarterly financial results on Monday after the bell. The company said that its revenue in the fiscal second quarter came in 24% lower on a year over year basis. It attributed its dovish performance to the Coronavirus pandemic that pushed several retailers into temporarily shutting down stores in recent months that resulted in unpaid rent dues.

COVID-19 has so far infected more than 5 million people in the United States and caused over 166,000 deaths.

Shares of the company tanked more than 1% in after-hours trading on Monday. At £49.50 per share, Simon Property Group is currently more than 50% down year to date in the stock market. Here’s a list of top stock brokers to get you started in the stock market in 2020.  

Simon registers £194.45 million of net income

In the second quarter that concluded on 30^th June, the largest American mall operator recorded £810 million in revenue. Simon registered £194.45 million of net income in the recent quarter attributable to its shareholders that translates to 63.49 pence per share.

In the same quarter last year, Simon noted its net income at a much higher £378.88 million or £1.22 per share. Earlier this year in February, the U.S. company had announced plans of acquiring Taubman for £2.75 billion.

The Indianapolis-based company valued its funds from operations (FFO) in the second quarter at £571.04 million versus the year-ago figure of £810 million. As COVID-19 weighed on Simon’s lease income and revenue from ancillary property, it took an 86 pence of hit per diluted share in Q2. Its cost reduction initiatives, however, helped offset COVID-19 hit by 28 pence per diluted share.

Other prominent figures in Simon’s earnings report

Other prominent figures in Simon’s earnings report on Monday include an 18.5% decline in its net operating income from comparable property and a 21.0% decline in its portfolio net operating income. Simon is currently negotiating with Amazon to turn empty mall spaces into distribution centres.

Simon boasted to have concluded the recent quarter with £6.50 billion of liquidity. This included access to £3.75 billion via its revolving credit line and £2.75 billion of cash. The American commercial real estate company has already paid 99 pence of dividend for the second quarter on 24^th July.

At the time of writing, Simon Property Group is valued at £15.31 billion and has a price to earnings ratio of 10.13.