Home Featured Simon Property Group Plans to Add Sports Gaming Restaurants

Simon Property Group Plans to Add Sports Gaming Restaurants

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Simon Property Group recently reported that it had a very busy and productive quarter and that it was pleased with its financial results.

“Results of the quarter were highlighted by funds from operation of $1.081 billion, or $3.05 per share,” explained CEO David Simon on the firm’s Q3 earnings call. “We achieved this consensus this quarter even with certain unanticipated retail of bankruptcies, reduced property level NOI from the acceleration of properties undergoing significant redevelopment such as Northgate compared to our budgets.”

He also added that the REIT reported “reduced overage rents from tourism spending, including the negative impact from the continued strong U.S. dollar and lower distribution income from certain international investments. We continue to grow our cash flow and report solid key operating metrics.”

According to Simon, “retail sales momentum accelerated in the third quarter. Reported retail sales per square foot for malls and outlets was $680 compared to $650 per foot, an increase of 4.5%. Leasing activity remains solid, average base minimal rent was $54.55. The malls and Premium Outlets recorded leasing spread of $12.10, an increase of 22.2%.”

He explained that the company also had a very busy quarter in terms of completion of redevelopment projects, in particular, expansions on several of its high performing international outlets. “We opened — including two in South Korea and one in Vancouver out — Vancouver designer outlet in Canada.

During the quarter, we started construction on our significant redevelopment at Tacoma mall. And at the end of the third quarter, we have 30 properties across all of our platforms in the U.S. and internationally with the share of the net costs of approximately $1.4 billion. And as a reminder, this is being funded by our internally generated cash flow.”

One thing he did also note on the call was that the REIT plans to open Sports Illustrated, Sports Gaming Restaurants in the future.