Simon Property Group says rental income rose to 85% in the third quarter.

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Simon Property Group says rental income rose to 85% in the third quarter.
The commercial property company reports income of £800 million in the third quarter.
The American company’s profit for the third quarter is down to £110.36 million.

Simon Property Group Inc. (NYSE: SPG) said on Monday that its retail properties reported higher rental income in the United States in the third quarter of the fiscal year, following a sharp drop in the spring quarter due to the coronavirus pandemic that has put a strain on tenants’ financial health.

The company’s shares fell 1.5% in Monday’s post-trading. At £56 per share, Simon Property Group’s share price is now almost 50% lower than the previous year’s share price on the stock exchange, after recovering from an even lower price of £34 per share in March, when the impact of COVID-19 peaked. Are you confused about choosing a reliable stockbroker for online trading? Here is a list of the few providers to help you make your choice.

Simon Property Group profit slips to £110.36 million in Q3

To date, the COVID 19 crisis has infected more than 10 million people in the United States and killed just under a quarter of a million people. In separate news from the U.S. on Monday, Beyond Meat also released a weaker than expected earnings report for the third quarter of the fiscal year.

Simon said his third quarter profit was printed at 110.36 million pounds, equivalent to 36.31 pence per share. In the same quarter last year, he had reported much higher earnings of £411.71 million or £1.34 per share.

Working capital, the U.S. company added, was £1.55 per share in the final quarter, while a higher £2.26 per share was expected according to the FactSet. The FFO was charged 83 pence per share in the last quarter due to the coronavirus pandemic. This was partially offset by cost reductions which resulted in a third quarter FFO of 17.40 pence per share.

Simon Property Group reports £800 million revenue in Q3

In terms of revenue, Simon recorded £800 million in the third quarter compared to £1.07 billion in the same period last year. Experts had forecast higher revenues of £850 million for the third quarter. In the previous quarter (Q2), the Indianapolis-based company reported that its revenue was 24% lower, according to the report released in August.

At the end of the third quarter, the commercial real estate company stated that occupancy in the US was 91.4%. On a net basis, rent collection was reported at 85% in the third quarter, compared to 72% in the fiscal second quarter.

At the time of writing, the largest shopping center operator in the U.S. is estimated at £18.31 billion and has a price-to-income ratio of 13.90.

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