Simon Properties, the US commercial real estate firm, posted its second-quarter financial reports on Monday that showed the impact of the pandemic on revenue but beat the experts’ earning forecast. The company’s shares were 0.5% up in after-hours trading and closing the day with 5.3% surge.
Meanwhile, there are reports that the US shopping mall owner is also in talks with the tech giant, Amazon, to convert Sears Department stores and JCPenney into fulfilment centres.
Moreover, the firm posted an EPS of 83 cents on $1.06B revenue as compared to the experts’ forecast of $1.09B revenue and earnings per share of 64 cents.
The money from operations was $746.5M as compared to the previous year’s $1.064B in the same period. It is $2.12 a diluted share this year as compared to the $2.99 per diluted share, last year.
In the meantime, the net operating income for the half-year, ending June 30, 2020, slumped 9.3% and the NOI for portfolio decreased by 10.7%.
The company said that the revenues fell due to the government restrictions in the states and the lockdown, making people close their stores. The company was pessimistically affected by $1.13 per diluted share, despite offsetting the losses by cost reduction methods, thus saving around $0.36 per diluted share. The primary reason for fall was reduced rent incomes from tenants.