What: Simon Property Group reported significant increases in leasing volumes, occupancy rates, shopper traffic, and retail sales volumes during the second quarter of 2024, achieving the highest Q2 real estate net operating income in its history.

Why it is important: This growth highlights the resilience of Simon's mall properties and the continued consumer spending, despite economic challenges, while revealing the struggles of its retailer portfolio like J.C. Penney and Sparc Group brands, which cater to lower-income shoppers.

Simon Property Group experienced a robust second quarter, with a notable rise in leasing activities, occupancy, shopper traffic, and retail sales volumes, leading to a 5.2% year-over-year increase in net operating income from its North American properties, reaching USD 1.3 billion. The company signed over 1,400 leases, with 30% being new deals, and saw a 5% increase in traffic and a 2% rise in total sales volumes. However, the retailer portfolio managed by Sparc Group, which includes brands like Forever 21 and Aéropostale, saw a significant decline in net operating income by 76% to USD 6.5 million, due to the economic pressures on lower-income consumers. Despite these challenges, CEO David Simon remains optimistic about future consumer spending trends.

Simon Malls report Q2 gains in occupancy, traffic, and retail sales