Results in the quarter for Simon Property Group were highlighted by funds from operation of $1.06 billion or $2.99 per share. According to CEO David Simon, leasing activity remained solid with an average base rent of $55.52.
He said on the firm’s Q2 earnings call that leasing spread was $16.53 per square foot, an increase of 32.3%. “We’re pleased that our sales momentum from our retailers continued in the second quarter,” he said on the call. “Reported retail sales per square foot for our malls and outlets was $669 per foot, compared to $646 in the prior year period, an increase of 3.5%, and just to give you a fun fact, we have over 77 properties; that’s right 77 properties that if you average their total sales will be over $900 a foot. So 77 over $900 a foot, and you can see that clearly as our report retail sales on an NOI weighted basis of $852 compared to the $669 per foot occupancy would be 95.5% compared to 94.4%, and our average base minimum rent would be $73 — a little over $73 per foot.”
In terms of new developments for the quarter, he said that the company broke ground on a luxury outlet in Normandy, which is its first designer outlet in Western Paris, Catchment Area and its third outlet in France. “This center is projected to open in the second quarter of 2021. Construction continues on the three international outlets in Malaga, Spain; Bangkok, Thailand; West Midlands, England, all open in 2020. Queretaro, in Mexico, opened and its full grand opening will be in the fall of this year.”
He adds that the firm continue to expand our international outlet presence in growing markets adding to its overall franchise value with high rates of return.
“We continue to focus on the long-term, we’ll continue to invest in our product and generate the kind of returns that will grow our earnings, cash flow, and dividends.”