By Chris Isaac
Earlier this month it was revealed how severely the pandemic had impacted PREIT’s finances, as their trade value on the New York Stock Exchange had sunk to below one dollar.
Now Simon Property Group, owner of the King of Prussia and Montgomery Malls as well as the Philadelphia Premium Outlets in Limerick, is seeing the fallout as well, with their stock value plummeting by 52% since the start of this year, as reported by Forbes.
This news is not necessarily surprising, as most companies that rely on customers are in that same boat thanks to the lockdowns and the reduced occupancy mandates. Still, it is another blow that makes analysts once again question the viability of many malls to withstand the ramifications of this difficult year.
Fortunately, Simon Property Group has comparatively not been hurt quite as much, as Forbes states that the retail group’s trade value is at $70, even after losing half their stock value. And analysts do point out that historically it is not impossible for Simon Property Group to recover from this, as they regained around 90% of their value following 2008’s recession.
This information suggests that if Simon Property Group can ride out these tough times that the future may not be so bleak for them. If history repeats itself, the retail group will continue to take some hits while the wait for a vaccine to COVID continues, but they could have the potential to build back strong afterward.
Read more about Simon Property Group’s stock situation by reading the original Forbes article by clicking here.
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