KoP Mall Owner in Reporting Increase in 3Q Occupancy and Rents: Brick-and-Mortar Is ‘Where the Action Is’

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man with glasses holding a girl
Image via King of Prussia Mall at Instagram.
Simon Property Group CEO David Simon cited some upbeat economic data for 3Q2022 performance of properties that included King of Prussia Mall; like retail moguls worldwide, his hopes for the 2022 holiday season are high.

Simon Property Group CEO David Simon reacted to his firm’s release of 3Q2022 earnings with assurance that traditional mall shopping is still quite vital. Despite online competition. And a recession. And high inflation. Linda Moss captured his optimism for CoStar News, a Richmond, Va., real estate analytics firm.

The latest company financials showed the following:

  • Operating funds up about four percent (to $1.11 billion)
  • Year-over-year net income down $140.9 million (to $539 million)
  • Corporate rises in governance and quarterly dividends

Despite the mixed bag of financials, David Simon was upbeat, pointing to a postpandemic slowdown in online retail sales and strength in retail sales despite anecdotal evidence of economic sluggishness among consumers.

“It’s been a difficult year for e-commerce, and bricks is where the action is,” he commented.

He — along with retailers worldwide — is hopeful for a healthy 2022 holiday season.

In terms of leases within King of Prussia Mall and the company’s outlet properties, Simon reported two-percent lifts in both occupancy and per-square-foot rental income.

“Simon’s results were very solid, reflecting an ongoing recovery on occupancy rates and rents,” wrote Neil Saunders, managing director of London research firm GlobalData, in an email to CoStar News. “This generally reflects the good quality of Simon’s malls.”

More third-quarter 2022 data from David Simon’s retail management company is at CoStar News.

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