Mall giant Simon, which owns the Del Amo Fashion Center in Torrance, Calif., reported mixed results when it announced its fourth quarter and 2020-year results on Feb. 8.
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Simon Property Group CEO Remains Bullish on 2021
After a year when its business was battered by stores shuttering and temporary mall closures, the shopping-center giant Simon Property Group on Feb. 8 reported results for its fourth-quarter and year-end revenues.
David Simon, chairman, chief executive officer and president of the Indianapolis-headquartered real-estate investment trust was bullish on the upcoming year’s business.
“2020 was a difficult year for all those affected by COVID-19, including our company,” Simon said. “We feel confident we have turned the corner, and we expect growth in earnings and cash flow in 2021.”
For the 2020 fiscal year, net income was $1.1 billion, or $3.59 per diluted share. Portfolio net operating income declined 17.1 percent. The year-over-year decline was due to reduced revenues from tenant rent abatements, higher uncollectible rents and lower sales-based rents, according to a Simon statement. For the fourth quarter, net income was $271.5 million, and portfolio net operating income declined 23.9 percent. Wall Street investors expected the company to earn $0.87 per diluted share with Simon reporting $0.86 per diluted share, just slightly missing forecasts.
Simon owns major California malls including the Del Amo Fashion Center in Torrance, Calif., Fashion Valley in San Diego and the Camarillo Premium Outlets in Camarillo, Calif. During a tough year, real-estate investment trusts came to the rescue of many beleaguered companies, helping to take high-profile companies such as Forever 21, Lucky Brands, Brooks Brothers and JCPenney out of bankruptcy.
Despite the tough year, in December Simon acquired an 80 percent ownership interest in the Taubman Realty Group, owner of the prominent Beverly Center mall.
