INDIANAPOLIS-- Retail real estate company Simon Property Group nearly doubled its sales for the third quarter ended Sept. 30, due in part to sales gains at its premium outlet centers.
Simon recorded net income of $164.9 million for the quarter, a 74.3 percent increase from $94.6 million for the year-ago period, on net sales of roughly $907.2 million, compared with about $818.8 million for the same period last year.
Premium outlet centers were a top performer for Simon, with an 8 percent comparable sales-per-square-foot increase to $499. Regional mall sales grew 3.6 percent to $491 per square foot.
Simon's community and lifestyle centers saw the largest gain in terms of occupancy, to 92.8 percent from about 90.7 percent for the same period last year.
Simon, during its earnings call, said that despite a retail sales slowdown in September and October due to a mix of warm weather and economic uncertainty, the majority of its retailers have not changed original plans for store openings next year.
For the near term, the holiday picture looks to be somewhat favorable for Simon Property. The company expects gift card sales to see a double-digit increase, with totals ranging from the high $500 millions to $600 million. These estimates are up from the roughly $515 million generated from gift cards last year.
Simon Property during the quarter continued construction on six new U.S. developments, including the Philadelphia Premium Outlets; the Palms Crossing in McAllen, Texas; the Hamilton Town Center in Noblesville, Ind.; the Houston Premium Outlets; and the Jersey Shore premium outlets. Overseas openings include the Kobe-Sanda Premium Outlets in Japan; Italy's now-largest shopping mall, the Porta di Roma in Rome; and the Cinisello Shopping Center in Milan, Italy. --Michael Rudnick