Simon Property Group says rent collection jumped to 85% in the third quarter

Simon Property Group says rent collection jumped to 85% in the third quarter
Written by:
Wajeeh Khan
November 10, 2020
  • Simon Property Group says rent collection jumped to 85% in the third quarter.
  • The commercial real estate firm reports £800 million of revenue in Q3.
  • The American company's profit slides to £110.36 million in the third quarter.

Simon Property Group Inc. (NYSE: SPG) said on Monday that its retail properties in the fiscal third quarter posted higher rent collections in the United States, after a sharp decline in the spring quarter due to the Coronavirus pandemic that weighed on the financial health of tenants.  

Shares of the company tanked 1.5% in after-hours trading on Monday. At £56 per share, Simon Property Group is now close to 50% down year to date in the stock market after recovering from an even lower £34 per share in March, when the impact of COVID-19 was at its peak. Confused about choosing a reliable stockbroker to trade online? Here’s a list of the top few to make selection easier for you.

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Simon Property Group’s profit slides to £110.36 million in Q3

The COVID-19 crisis has so far infected more than 10 million people in the United States and caused a little under a quarter-million deaths. In separate news from the U.S., Beyond Meat also published a weaker than expected earnings report for the fiscal third quarter on Monday.  

Simon said that its profit in Q3 printed at £110.36 million that translates to 36.31 pence per share. In the same quarter last year, it had reported a much higher £411.71 million of profit or £1.34 per share.

Funds from operations, the American company added, stood at £1.55 per share in the recent quarter versus a higher £2.26 per share expected, as per FactSet. FFO took a hit of 83 pence per share in the recent quarter due to the Coronavirus pandemic. It was partly offset by cost reductions that resulted in 17.40 pence a share of boost in Q3.

Simon Property Group reports £800 million of revenue in Q3

In terms of revenue, Simon registered £800 million in the third quarter versus the year-ago figure of £1.07 billion. Experts had forecast a higher £850 million of revenue in Q3. In the prior quarter (Q2), the Indianapolis-based company said that its revenue was 24% lower, as per the report published in August.

As of the end of the third quarter, the commercial real estate firm said occupancies stood at 91.4% in the U.S. On a net basis, rent collection was reported at 85% in Q3 versus 72% in the fiscal second quarter.

At the time of writing, the largest shopping mall operator in the U.S. is valued at £18.31 billion and has a price to earnings ratio of 13.90.