TOMS RIVER, NJ – Simon Properties which owns and operates shopping malls nationwide and here in New Jersey reported this week that only 51% of their tenants paid rent in April and May. In June, 69% of tenants paid and in July, 73%.
The company said as of August 1st, 91% of the company’s tenants had reopened their businesses.
“We continue to navigate through the challenging times presented by the pandemic with a commitment to the safety of our employees, shoppers, retailers and the communities we serve,” said David Simon, Chairman, Chief Executive Officer and President. “Despite losing nearly 10,500 shopping days in our U.S. portfolio in the second quarter, we produced solid profitability and positive cash flow from operations. We have generally been encouraged by the shopper response, particularly in certain locations, after re-opening. These trends reinforce that our portfolio is an attractive destination for consumers. We remain committed to supporting our thousands of local and regional small businesses and restaurant entrepreneurs by granting rent abatements for the period they were closed. Our Company is well-positioned through a combination of deep brand relationships, the best portfolio with a strong mix of geographic locations and product types and a strong balance sheet, to continue our leadership position in the retail real estate industry.”
There is some good news in Simon’s future. Online shipping giant Amazon has said it has interest in taking over vacant box stores in shopping malls to use as regional shipping facilities and warehouses.