With the coronavirus pandemic significantly impairing the profitability of brick-and-mortar stores since the start of nationwide lockdowns, Simon Property has taken the decision to pull its financing from four of its malls with prospects of financial success being severely impacted.
The United States’ largest shopping center operator, Simon Property Group (SPG) made its monumental decision due to the aforementioned malls incurring approximately $410.9 million of mortgage debt.
Not only will Simon Property Group engage in foreclosures of the Mall at Tuttle Crossing in Dublin, Ohio, and the Southridge Mall in Greendale, Wisconsin, but the group also announced that it will no longer be financing the Montgomery Mall in North Wales, Pa. It will also give the lender back Simon’s title interest in the Crystal Mall in Waterford, Connecticut.
In addition to the crushing mortgage debt of the aforementioned malls, Simon Property Group has additionally incurred $963.4 million of debt due to falling cash flows and excessive expenses.
While Simon Property Group shares enjoyed an 8% increase on Friday, the company still finds itself valued at 49.9% lower during the year to date.
